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Key developments
San Marcos ban precedes Abbott rural crackdown
San Marcos became the first Texas city to ban data centers within city limits after a 4-3 City Council vote on June 16, according to ABC13 Houston. FOX 7 Austin reported that Gov. Greg Abbott then called on June 30 for prohibiting AI data centers in rural Texas neighborhoods, eliminating tax breaks, and requiring projects to bring power, reuse water, and lower residential electricity costs. USA TODAY reported Texas has 248 planned data centers and 519 ERCOT grid requests, while local moratoriums in counties such as Hill and Hood have faced legal or authority challenges.
Why it matters
Texas is simultaneously courting AI infrastructure and moving toward tighter state oversight, making local control, incentives, water, and grid-cost allocation immediate fault lines.
Sources & driving stories
Delaware and New Jersey advance grid protections
Delaware lawmakers passed three bills on the final day of session: SB 326 limiting Delmarva Power infrastructure costs passed to customers, HB 233 making data centers first to be curtailed during blackouts, and HB 445 requiring data-center developers to supply all power they use within 10 years. Utility Dive reported New Jersey lawmakers sent Gov. Mikie Sherrill a bill directing the Board of Public Utilities to create tariffs for data centers of at least 50 MW. The New Jersey measure includes cost attribution, demand-response and efficiency programs, priority curtailment before residential customers, and 10-year take-or-pay guarantees covering at least 85% of requested service.
Why it matters
Two states are moving from general concern about data-center load growth to enforceable cost-allocation, curtailment, and self-supply requirements.
Sources & driving stories
SPOTLIGHT DELAWARE
Spotlight Delaware coverageUTILITY DIVE
Utility Dive coverageMaryland and Nebraska counties impose one-year pauses
Washington County, Maryland, commissioners voted 4-1 on June 30 to approve a yearlong moratorium on data-center applications, expanding an agenda proposal from six months to 12 months. County staff said they need time to study economic, water, utility, and alternate-power impacts while modernizing zoning definitions. KOLN reported Seward County, Nebraska, also approved a 12-month pause on data-center construction, permits, and special-use conditions, citing resident concerns about water, electrical infrastructure, roads, noise, environmental impacts, and decommissioning.
Why it matters
County governments are using temporary freezes to buy time for zoning and infrastructure rules before data-center proposals arrive or advance.
Sources & driving stories
THE HERALD-MAIL
The Herald-Mail coverageKOLN · Anthony D'Agostino
KOLN coverageWorth noting
WORTH NOTING
Stack advances Berry Hill campus
Cardinal News reported Stack Infrastructure says its Pittsylvania County AI data center will proceed after Virginia retained qualifying data-center tax exemptions through 2035, with a separate project deal potentially extending exemptions to 2040 or 2050.
WORTH NOTING
Alaska 3GW North Slope plan
Broadband Breakfast's Abby Larkin reported Stak Energy is proposing a one-square-mile North Slope data-center campus that could reach up to 3 GW, using natural gas and air cooling to reduce water demand.
WORTH NOTING
Applied Digital adds 75 MW
Barchart reported Applied Digital delivered Phase 1 of Building 2 at Polaris Forge 1 in Ellendale, North Dakota, adding 75 MW and bringing live AI capacity at the fully leased campus to 175 MW.
Still unclear
OPEN QUESTION
Will state tariffs become the new template?
Delaware and New Jersey are both moving toward requirements that data centers absorb more grid costs, face earlier curtailment, and in some cases supply their own power.
OPEN QUESTION
Can local moratoria survive state preemption fights?
San Marcos' citywide ban is already drawing a challenge from Texas state officials, while counties in several states are relying on temporary pauses to preserve planning authority.