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Key developments
New York imposes first statewide data center moratorium
Gov. Kathy Hochul signed a one-year pause on new large-scale data center development in New York, making it the first U.S. statewide moratorium. Marketplace reported that Hochul also wants to repeal sales tax exemptions for data centers, citing grid strain and local ratepayer costs. NCSL’s Nicholas Miller reported that lawmakers in at least 15 states have considered data center bans this year and that 13 states are considering substantially unwinding data center tax incentives.
Why it matters
New York’s action turns data center siting, tax incentives, grid costs, and water use into a statewide regulatory precedent other legislatures may copy.
Sources & driving stories
QTS and Lancium announce $10B Texas campus
QTS and Lancium announced plans for up to 11 data center buildings on about 465 acres at Lancium’s Clean Campus near Turkey in Hall County, Texas. Datacenter Dynamics’ Dan Swinhoe reported the project is valued at $10 billion and anchored by a 1GW grid connection. The companies said they will fund all required energy infrastructure improvements, with Lancium expected to provide power including on-site solar and battery storage, while QTS plans closed-loop cooling and said water would not come from Turkey’s municipal system.
Why it matters
The project is another gigawatt-scale AI-era campus pairing hyperscale compute growth with dedicated power infrastructure and explicit water-use assurances.
Sources & driving stories
DATA CENTER DYNAMICS · Dan Swinhoe
Data Center Dynamics coverageLocal governments add moratoria and permit gates
Pasco County, Florida approved a one-year moratorium on large data centers in unincorporated areas, temporarily banning server and computer rooms above 2.5MW while it writes rules. Leon County, Florida commissioners unanimously approved an 18-month moratorium on large-scale data centers. Lynchburg, Virginia also unanimously approved rules requiring a special use permit before future data center construction, creating an earlier public review point for impacts such as water and energy use.
Why it matters
Local governments are moving faster than many states to pause projects or add discretionary review before data center approvals become by-right development decisions.
Sources & driving stories
WUSF · Steve Newborn
WUSF coverageWCTV · Julia Miller
WCTV coverageWSET · Charley Vicario
WSET coverageWorth noting
WORTH NOTING
Georgia Power tightens large-load terms
Georgia Power described revised expectations that may require data centers and other large users to sign longer contracts, pay minimum bills, provide financial security, make termination payments, and cover local infrastructure costs upfront.
WORTH NOTING
Verrus plans Salem-area campus
DatacenterDynamics’ Dan Swinhoe reported that Alphabet-affiliated Verrus is developing a proposed 75-acre, three-building campus near Salem, Oregon, with closed-loop cooling, lithium iron phosphate backup batteries, and grid-reactive operation coordinated with Portland General Electric.
WORTH NOTING
EPC opens AI inverter factory
WYFF 4’s Stephanie Moore reported EPC Power opened a 167,000-square-foot Fountain Inn, South Carolina manufacturing facility that will create 275 jobs, nearly triple production capacity, and add 27GW of annual inverter capacity for grid, storage, and AI data center applications.
Still unclear
OPEN QUESTION
Will moratoria redirect projects to incentive states?
New York and several local governments are slowing approvals, while states such as Louisiana and Texas continue courting AI data center investment with major projects and incentives.
OPEN QUESTION
Can large-load contracts protect ratepayers?
Georgia Power’s proposed minimum bills, security requirements, and upfront infrastructure payments point to a broader unresolved fight over who pays for grid upgrades driven by data center load growth.