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Key developments
Local governments widen data center restrictions
San Marcos became the first Texas city to ban data centers, after its council voted 4-3 on June 16 to define them and make them ineligible anywhere within city limits. GovTech reported Aurora, Illinois ended a 180-day moratorium with siting limits, zoning controls, noise rules, water- and energy-efficiency standards, and annual reporting requirements, while at least six Illinois counties and nine cities have approved moratoria or regulations since May. Nebraska Public Media reported Seward County commissioners voted Tuesday for a one-year moratorium, making it one of at least 10 Nebraska counties with a moratorium and five more considering one.
Why it matters
The expanding local patchwork is turning zoning, water, power and legal-authority questions into front-line constraints for data center development.
Sources & driving stories
THE TEXAS TRIBUNE · Katlyn Ma
The Texas Tribune coverageGOVTECH
GovTech coverageNEBRASKA PUBLIC MEDIA
Nebraska Public Media coverageNashville mayor targets data center with eminent domain
Nashville Mayor Freddie O'Connell announced legislation June 29 to condemn and acquire 648 Grassmere Park, where DC BLOX plans a facility next to the Nashville Zoo. FOX 17 reported the move follows a petition with more than 500,000 signatures; county records list MarketStreet Enterprises as owner, with a 2015 purchase price of $25,938,000 and a 2026 appraised value of $37,400,600. NewsChannel 5 reported Metro would purchase the property at fair market value for public use, while DC BLOX says the project is not an AI factory and would not add noise above ambient levels.
Why it matters
Condemnation would be an unusually aggressive municipal intervention and could create a new litigation-heavy template for blocking controversial sites.
Sources & driving stories
FOX 17 NEWS · Karen Aguilar
FOX 17 News coverageNEWSCHANNEL 5 NASHVILLE
NewsChannel 5 Nashville coveragePower costs push tariffs and rate fights
News 5 Cleveland reported Ohio lawmakers' June data-center reform package stalled amid disagreement over the state's sales-tax break, while AEP Ohio's data-center tariff requires substantial upfront costs and long-term agreements and has reduced its project pipeline. Montana Free Press reported NorthWestern Energy filed a PSC tariff for 5-to-50 MW and 50-plus MW loads, drawing nine intervention requests within 2.5 months. 404 Media reported Henrico County, Virginia, which hosts 37 data centers and plans 17 more, emailed employees June 26 to conserve electricity as it expects a 25% cost increase and about $5 million in added expenses next fiscal year.
Why it matters
Electricity procurement and cost allocation are becoming gating issues alongside land-use approvals.
Sources & driving stories
NEWS 5 CLEVELAND
News 5 Cleveland coverageMONTANA FREE PRESS · Amanda Eggert
Montana Free Press coverage404 MEDIA · Matthew Gault
404 Media coverageWorth noting
WORTH NOTING
AWS backs Brookhaven GridSearch
Brookhaven National Laboratory announced June 30 that AWS will provide compute infrastructure and AI expertise to scale GridSearch, an AI tool intended to prescreen grid interconnection sites in minutes rather than months.
WORTH NOTING
Digital Realty expands Virginia stake
Digital Realty agreed to acquire Blackstone interests in three fully leased Northern Virginia facilities totaling 288 MW, a $7.8 billion gross-value transaction with $3.5 billion in consideration.
WORTH NOTING
Build.inc raises AI preconstruction funding
Upstarts Media reported Build.inc raised $8.5 million led by Index Ventures for AI agents that automate site selection, permitting and other pre-construction tasks for infrastructure projects including data centers.
Still unclear
OPEN QUESTION
Will local bans survive state preemption challenges?
San Marcos is already being framed as a test of Texas home-rule authority, and similar local moratoria are spreading faster than statewide rules.
OPEN QUESTION
Who pays for new grid capacity?
AEP Ohio, NorthWestern Energy and Henrico County show that tariff design and cost allocation could determine both project economics and public acceptance.