Daily Digest — March 26, 2026
Independence, Missouri Court Upholds AI Data Center Tax Incentives, Blocks Referendum
A Jackson County Circuit Judge has ruled in favor of the City of Independence, Missouri, dismissing a lawsuit that sought to force a public vote on over $6 billion in tax breaks granted to Nebius (also referred to as Medius U.S. in some reports) for a large-scale AI data center. Judge Jennifer Phillips found that the Independence City Council had the authority under the city charter to approve the ordinance without a referendum, according to KCUR.
The project involves a roughly 400-acre AI data center campus near Route 78 and Little Blue Parkway, representing an anticipated $150 billion investment over 20 years. The city approved a 20-year, 90% tax abatement for the developer, with the city expecting $30–55 million in annual revenue from the project, as reported by FOX4 News Kansas City.
The opposition group "Stop the AI Data Center in Independence," which claims to have collected 3,200 signatures, expressed disappointment in the ruling. According to KMBC 9, the group is evaluating an appeal within 30 days and shifting focus to the April 7 mayoral election and city charter changes. Interim City Manager Lisa Reynolds stated the ordinance took effect immediately and related to contracts, making it ineligible for referendum under the city charter. Site preparation is already underway, with crews clearing land, per KCUR.
Judge rules for Independence in fight over AI data center referendum
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Group of residents express frustration after judge blocks vote on Independence AI data center
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Judge throws out lawsuit over Independence data center, sides with city
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Judge says Independence residents can't force vote on data center tax breaks
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Judge rules in data center lawsuit
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Sanders and Ocasio-Cortez Introduce Federal AI Data Center Moratorium Bill
Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) have introduced the Artificial Intelligence Data Center Moratorium Act, proposing a temporary nationwide pause on new AI data center construction. The bill would halt development until federal safeguards are enacted covering worker protections, environmental impacts, and energy costs, according to PBS.
The legislation faces long odds. As reported by The Daily Gazette, the proposal contrasts sharply with the Trump administration's AI policy framework, which advocates for streamlined data center permitting. Sen. John Fetterman (D-PA) has also rejected the moratorium concept, echoing concerns that halting development would cede AI leadership to China.
The moratorium would be lifted upon passage of federal laws addressing three areas:
- Reviewing AI products for societal threats
- Ensuring economic gains benefit workers
- Limiting data center construction to prevent electricity cost increases, environmental harm, and ensuring community input
Major tech companies including Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon have committed to developing their own power generation sources and covering infrastructure upgrade costs, as reported by PBS. U.S. electricity consumption reached a record high in 2024, with AI-focused data centers consuming power equivalent to 100,000 households, per the same report.
Progressive Lawmakers Propose Halt to New AI Data Centers Nationwide
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Ocasio-Cortez and Sanders push bill to impose AI data center moratorium
PBS
Data center moratorium pitched as counter to AI impacts
The Daily Gazette
Sanders, Ocasio-Cortez propose bill to pause AI data center construction
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Taylor, Texas Residents Rally Against Data Center Plans Ahead of Council Vote
Residents in Taylor, Texas, are organizing against a proposed data center on a 210-acre site near the Samsung factory. The Taylor City Council is scheduled to consider a rezoning request for the project, referred to as "Project Comal," at a Thursday meeting, according to KVUE.
The Halt Taylor Data Centers Coalition held a press conference calling for a delay in zoning approval and a statewide moratorium on data centers in Texas. Clayton Tucker of the Texas Farmers Union cited concerns about increased power prices and water consumption, as reported by the Taylor Press. Opponents argue the proposed facility would be approximately 200 feet from nearby neighborhoods.
City officials counter that the proposed ordinance includes measures to protect water resources and prevent noise and light pollution. The project is estimated to generate:
- ~$70 million for the school district
- ~$145 million for the city
A separate data center project in Taylor, the "Blueprint Data Center," faces ongoing legal challenges. A lawsuit against it was dismissed by a state district judge in October but is currently under appeal, per the Taylor Press.
Monroe Township, New Jersey Takes First Steps Toward Data Center Ban
The Monroe Township Council in New Jersey approved a first reading of an ordinance amendment aimed at eliminating data centers and related uses from a redevelopment plan involving Hexa Builders. The action came during a Wednesday night meeting where residents expressed strong opposition to data center development, according to NBC10 Philadelphia.
No data center application has been submitted by Hexa Builders, which instead proposed a warehouse on land along the Black Horse Pike. However, existing ordinance language could have permitted data center use. Council members indicated that township attorneys will review the amended language to ensure it is legally defensible. The ordinance amendment, designated Ordinance 2020-26, would need to pass a second reading before taking effect.
Aurora, Illinois Enacts Comprehensive Data Center Regulations After Moratorium
The Aurora City Council unanimously approved a new set of data center regulations following a 180-day moratorium on new data center and warehouse developments, according to the Chicago Tribune. The regulations establish strict standards for energy efficiency, water consumption, and noise emissions.
Key provisions include:
- City Council authority to approve or deny proposed data center projects (previously classified as warehouses)
- Mandatory environmental impact studies for future facilities
- Annual reporting requirements for all data centers within city limits — including five existing and five under development — covering power usage, water consumption, noise levels, and biometric data storage
- Strengthened noise limits and setbacks for chiller units and backup generators
- Local replication of Illinois's Biometric Information Privacy Act
Mayor John Laesch called the ordinances "first-of-its-kind" protections and urged the state to consider similar legislation. A proposal by Ald. Shweta Baid for a half-mile residential setback was rejected due to potential legal challenges. Resident complaints about noise from an existing CyrusOne facility influenced the regulations, and the city and CyrusOne are working on mitigation measures including permanent sound barriers, per the Chicago Tribune.
Mason County, Kentucky Residents Threaten Lawsuit Over 2,080-Acre Data Center Proposal
A public hearing in Maysville, Kentucky, over a proposed 2,080-acre hyperscale data center in Mason County escalated into a confrontation between attorneys. Hank Graddy, representing local residents, has pledged to file a lawsuit to block the rezoning of 28 properties needed for the development, according to WCPO 9.
Graddy challenged developer attorney Tanner Nichols to reveal the identity of the Fortune 500 tech company behind the proposed 400-gigawatt facility. Nichols declined, stating the identity would remain confidential until the zone change is approved and property contracts are signed. Graddy argued that an industrial data center is inconsistent with Mason County's existing development plan and that residents have a right to know the builder's identity.
Nichols contended the project aligns with the county's development goals, citing potential job growth and economic diversification. He noted that extensive surveys and compliance studies have been conducted. Graddy confirmed plans to file suit on Thursday against the Mason County Joint Planning Commission and the undisclosed developers, as reported by WCPO 9.
