Last Update: 08/01/2026 at 1:34 PM EST

Mid-day Briefing: Data Centers

Thursday, July 2, 2026 · 11:48 AM EDT

Key developments

KENS5

San Marcos enacts Texas data-center ban

Kens5 reported that San Marcos became the first Texas city to ban data centers within city limits after the City Council voted 4-3 on June 16 to define data centers and make them ineligible anywhere under the city land development code. Officials cited water and energy use; no projects are currently proposed inside city limits, though nearby unincorporated Hays County has seen proposals. State Sen. Paul Bettencourt said he plans to challenge the ban, arguing it conflicts with House Bill 2559 and the 2023 “Death Star” law.

Why it matters

The move creates a high-profile test of how far Texas cities can use zoning to block data-center development.

Sources & driving stories

TAMPA BAY 28

Florida statewide data-center law takes effect

Tampa Bay 28’s Chad Mills reported that Florida’s large data center law took effect Tuesday after Gov. Ron DeSantis signed the bill. The law is intended to keep existing electric customers from subsidizing large data centers’ power demand, adds water-related requirements, and requires a statewide study of long-term data-center impacts by July 1, 2027. The final statute dropped earlier provisions on nondisclosure agreements, some community notification requirements, and added protections near neighborhoods and schools.

Why it matters

Florida is moving data-center cost allocation, water use, and long-term planning into statewide regulation rather than leaving the issues only to local disputes.

Sources & driving stories

TAMPA BAY 28 · Chad Mills

Tampa Bay 28 coverage
YAHOO

Brookfield raises Bloom AI-power commitment to $25B

Yahoo’s Charles Kennedy reported that Brookfield expanded its strategic partnership with Bloom Energy, increasing its financing commitment for AI-related power projects from $5 billion to $25 billion. The financing supports Bloom fuel-cell-based onsite power systems for AI data centers and hyperscale computing infrastructure globally. The companies cited demand for reliable onsite generation that can be deployed faster than conventional utility grid upgrades and interconnection processes.

Why it matters

The expanded commitment shows large infrastructure capital moving toward behind-the-meter or onsite generation as data centers run into grid constraints.

Sources & driving stories

YAHOO · Charles Kennedy

Yahoo coverage

Worth noting

WORTH NOTING

Berlin Township regulates data centers

River Reporter’s Avery Ohliger reported that Berlin Township, Pennsylvania, unanimously passed a June 16 ordinance requiring traffic, economic, environmental, water, electric, and nuclear energy studies, plus noise limits, while municipal-law experts questioned regulating without zoning.

WORTH NOTING

Gas-plus-nuclear bridge model detailed

Yahoo Finance reported that Blue Energy, GE Vernova, and Crusoe are advancing a phased gas-to-SMR model, including a Port of Victoria, Texas project with a planned 2027 final investment decision, 2029 gas-turbine delivery reservations, roughly 1 GW around 2030, and SMRs as early as 2032.

WORTH NOTING

Digital Realty funds expansion

Yahoo’s Sasha Jovanovic reported that Digital Realty completed a US$2.28 billion follow-on equity offering, with proceeds tied to data center expansion including an approximately US$475 million acquisition of about 1,440 acres near Kansas City for future hyperscale capacity.

Still unclear

OPEN QUESTION

Can local bans survive state preemption challenges?

San Marcos’ ban and similar Texas local controls are already drawing state-level objections, making legal durability central to future siting fights.

OPEN QUESTION

Will onsite power prevent ratepayer cost shifting?

Florida’s law, Brookfield-Bloom financing, and gas-to-nuclear models all respond to the same unresolved question: who pays for the grid capacity data centers require.