Daily Digest — March 25, 2026
Wednesday, March 25, 2026

Daily Digest — March 25, 2026

Aurora, Illinois Approves Strict Data Center Regulations as Moratorium Expires

The Aurora City Council voted to approve a new ordinance imposing what officials described as the strictest data center regulations in Illinois, according to CBS News. The vote replaced a 180-day moratorium on new data center development that was set to expire on March 23.

The new regulations require prospective data center operators to:

- Conduct studies on sound, noise, and water usage

- Meet specific standards for noise, vibrations, and energy

- Obtain city council approval as a conditional use

- Locate generators and chillers at least 1,500 feet from homes

- Integrate on-site renewable energy sources or energy storage solutions

- Comply with biometric data privacy safeguards and grid reliability requirements

As reported by NBC 5 Chicago, residents near the existing CyrusOne data center on Diehl Road cited constant noise, with one resident reporting decibel levels peaking at 63 in his backyard and drywall cracks attributed to generator vibrations. The new rules do not apply to the four existing data centers or five facilities currently under development, though city officials stated existing centers must be transparent about their energy, water, and noise usage, per CBS News.

Mayor John Laesch called for the State of Illinois to pass the Illinois POWER Act to address electricity bills and quality of life. Northern Public Radio reported that nine data centers are currently either under development or already operational in Aurora. Some residents expressed concern that the strict regulations could deter new business, while others felt the restrictions did not go far enough. The regulations could take effect as early as April 1.


Liberty, Missouri Approves $200M+ in Tax Breaks for $1.4B Metrobloks Data Center

The Liberty City Council approved $1.4 billion in bonds and over $229 million in tax abatements for Los Angeles-based Metrobloks to construct a 568,000-square-foot hyperscale data center campus on 28 acres, according to the Kansas City Star. The 25-year tax incentive package includes a 75% real property tax abatement, with local taxing jurisdictions projected to receive nearly $49 million in revenue over the period.

The project is expected to create approximately 30 permanent jobs at an average annual wage of $95,649, plus hundreds of construction positions, as reported by Northwest MO Info. Metrobloks plans to utilize a closed-loop cooling system that the company says reduces water consumption by 85% compared to an office building. The developer also intends to leverage Missouri's Data Center Sales Tax Exemption Program.

As part of the deal, the city and Metrobloks committed to a 25-year, $27.75 million community benefits agreement funding the Liberty Institute for Science and Ethics, a nonprofit focused on AI ethics research, according to KMBC.

KCUR also noted the contrast with nearby Independence, Missouri, where a $6 billion Nebius data center project faces a resident lawsuit over tax abatements. A Jackson County judge is expected to rule on that case this week. Additionally, three proposed data centers in Wyandotte County would require the Board of Public Utilities to nearly triple its electricity generation capacity if built.


North Carolina Communities File Lawsuit, Expand Moratorium Push Against Data Centers

A lawsuit has been filed in Stokes County Superior Court challenging the county Board of Commissioners' January decision to rezone nearly 2,000 acres along the Dan River for heavy industrial use intended for a proposed data center called Project Delta, according to North Carolina Health News. The Southern Coalition for Social Justice and the Southern Environmental Law Center are representing local residents and groups including the National Hairston Clan, CleanAIRE NC, and 7 Directions of Service.

The plaintiffs argue the rezoning lacked procedural safeguards and reasoned decision-making despite what they describe as overwhelming constituent opposition. Concerns cited in the broader statewide movement include:

- Strain on water resources

- Noise and light pollution

- Increased utility costs

- Air quality impacts from generators

At least four North Carolina jurisdictions — Gates County, Chatham County, the town of Canton, and the city of Brevard — have approved temporary data center moratoriums. Apex, Boone, and Orange County are considering similar measures. The NC Environmental Justice Network recently hosted over 60 community and advocacy group members in Greensboro to coordinate statewide efforts.

The report also noted that a provision in the 2024 Disaster Recovery Act complicates local governments' ability to "down-zone" properties, making it harder to reverse zoning decisions without owner consent.


Central Texas Tracks 70+ Data Center Projects Amid Growing Opposition

The Austin American-Statesman is tracking over 70 planned or operational data center facilities between Temple and San Antonio as of March 2026. Approximately 5,600 megawatts of capacity are currently under construction in the Austin and San Antonio metro areas.

ERCOT projects a 71% surge in energy demand by 2031, with data center demand potentially exceeding 22,000 megawatts by 2030. Experts from Carnegie Mellon and North Carolina State Universities forecast an average 8% rise in U.S. electricity bills by 2030, potentially reaching 25% in major data center markets like Texas.

Local opposition is mounting. Residents in San Marcos and College Station have successfully lobbied city councils to deny proposed data center projects. Advocacy groups have protested at the Texas Capitol, pushing for counties to gain legal authority to regulate data center development. Several Texas counties are considering moratoriums on data center construction.


Tech Companies Explore Virtual Power Plants to Meet Data Center Energy Demands

Tech companies are increasingly exploring virtual power plants (VPPs) — networks of coordinated home energy devices — as a strategy to meet surging data center electricity demands, according to the Boston Globe. McKinsey estimates tech giants will invest $2.7 trillion in U.S. data centers and AI infrastructure by 2030.

Google announced its new Minnesota data center will fund thousands of utility-owned batteries for homes and businesses, contributing 1,900 megawatts of clean energy capacity. Austin-based startup Base Power offers Texas homeowners reduced electricity rates in exchange for installing backyard batteries that sell stored power back to the grid during peak hours.

On the policy front, executives from Google, Meta, Microsoft, and OpenAI signed a voluntary pledge at the White House to absorb their data center energy costs. States are considering legislation such as New York's Homegrown Energy Act and Illinois' POWER Act, which would require large data center developers to fund household electrification and efficiency measures.


Arm Releases First In-House Data Center CPU; Meta Signs On as Launch Customer

Arm Holdings has unveiled the AGI CPU, its first in-house central processing unit designed for data centers, with Meta as the debut customer, according to CNBC. The chip was developed at Arm's Austin, Texas campus, where the company invested $71 million and expanded its team to over 1,000 people.

Meta plans to deploy the AGI CPU across its AI data center infrastructure in Louisiana, Ohio, Indiana, and potentially at the Stargate site in Texas. The company is spending up to $135 billion on capital expenditures this year. Arm claims the chip delivers twice the performance-per-watt compared to x86 racks, addressing what Meta described as the "scarce resource" of wattage in power-constrained facilities. The chip will be manufactured by TSMC in Taiwan, with Arm expressing interest in future U.S. manufacturing.