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Key developments
Abbott urges rural Texas data center ban
The Texas Tribune reported that Gov. Greg Abbott called on June 30 for prohibiting new AI data centers in rural Texas neighborhoods, saying projects should bring their own money, power, and water and should not raise residents’ costs. The proposal goes beyond Abbott’s earlier June framework calling for data centers to add power generation, fund infrastructure, reuse water, use setbacks, and lose tax breaks. ABC13 Houston reported that San Marcos separately became the first Texas city to ban data centers citywide after a 4-3 council vote on June 16, with state Sen. Paul Bettencourt planning a legal challenge.
Why it matters
Texas is a leading data-center growth market, and political risk is moving from permitting friction to outright bans and state-level cost controls.
Sources & driving stories
THE TEXAS TRIBUNE
The Texas Tribune coverageABC13 HOUSTON
ABC13 Houston coverageNew York passes statewide data center moratorium bill
Capacity’s Nadine Hawkins reported that New York’s legislature passed the Responsible Data Center Development Act, which would impose a one-year pause on environmental permits for data centers drawing 20 MW or more if signed by Gov. Kathy Hochul. The bill would require state agencies to assess grid, water, and community impacts, and direct the Public Service Commission to create separate electric, gas, and water utility service classes for large data centers. Those classes would assign infrastructure upgrades, administrative costs, rate-of-return recovery, and future commodity price increases to data-center customers rather than broader ratepayers.
Why it matters
If enacted, New York would create a statewide model that links data-center approvals to utility cost allocation and resource-impact reviews.
Sources & driving stories
CAPACITY · Nadine Hawkins
Capacity coverageImperial Valley data center fight escalates
KVCR News reported that residents, local officials, and advocates in Imperial County, California, are mobilizing against a proposed Imperial Valley Computer Manufacturing data center led by Sebastian Rucci. The planned facility would be about 950,000 square feet and could require nearly twice the electricity used by the entire county in 2024, plus substantial water. The Imperial Irrigation District studied the proposal but later faced concerns, and the developer sued the district this month over water for the project.
Why it matters
The dispute shows how California’s AI infrastructure push could run into the same electricity, water, and local-governance constraints now visible in Texas and New York.
Sources & driving stories
KVCR NEWS
KVCR News coverageWorth noting
WORTH NOTING
Moratorium proposals spread locally
The Altoona Mirror reported Pennsylvania Senate committee approval of 18-month and six-month municipal moratorium bills, Prince George’s County Council announced a proposed two-year pause, and Spectrum News St. Louis reported St. Charles County considered a six-month moratorium for large-scale facilities.
WORTH NOTING
Alaska three-gigawatt proposal surfaces
Broadband Breakfast’s Abby Larkin reported Stak Energy is proposing a $500 million, roughly one-square-mile North Slope AI cloud data center with up to 3 GW of gas-fired power and air cooling, while gas supply and turbine procurement remain unresolved.
WORTH NOTING
Hyperscale capital still moving
Realty Income announced a programmatic joint venture with Cloud Capital and a global institutional investor to acquire stabilized hyperscale data centers, with seed assets valued above $6 billion and up to $1.4 billion expected over time.
Still unclear
OPEN QUESTION
Will local bans survive state preemption?
San Marcos already faces a planned state challenge, while Pennsylvania, Prince George’s County, and St. Charles County are testing moratorium tools that depend on local authority.
OPEN QUESTION
Who pays for grid upgrades?
New York’s proposed separate utility classes, Abbott’s cost-shift push, and recurring community bill concerns put cost allocation at the center of data-center approval risk.