Daily Digest — April 27, 2026
Google Escalates Hermantown Data Center Bid With Financial Incentives
Google is offering Hermantown, Minnesota, substantial cash payments and infrastructure as part of a draft development agreement for a proposed 278-acre data center campus near Duluth, according to Hoodline. The deal includes:
- An initial $150,000 payment to the city, with an estimated $4.5 million in lifetime payments
- An $850,000 upfront payment to Independent School District 700, with projections of $40 million over 28 years
- Construction of water, sewer, and road infrastructure to be transferred to the city
- A tax abatement with a present value of approximately $33.5 million, with clawback provisions tied to job targets
The proposed campus would include up to 1.8 million square feet of facilities — four 300,000-square-foot server buildings — phased over eight to ten years. A 30-day public comment period on the city's environmental review runs until April 30, 2026.
Minnesota Power has entered an electric service agreement with Google to support 700 MW of new clean energy, including 300 MW of wind and 400 MW of battery storage. Google would also contribute $5 million to energy-affordability programs. The agreement awaits review by the Minnesota Public Utilities Commission.
The project faces a lawsuit from the Minnesota Center for Environmental Advocacy alleging inadequate environmental impact assessments, particularly regarding water and wetlands. The group Stop the Hermantown Data Center and local residents continue to express concerns about transparency and environmental impacts.
Indianapolis Hosts Sessions on Proposed Data Center Zoning Ordinance
Indianapolis is holding two virtual information sessions this week on a proposed ordinance that would establish the city's first specific zoning regulations for data centers, as reported by WISH-TV. The Department of Metropolitan Development is leading the effort.
The proposed regulations follow a period of intense public opposition. A shooting at the home of Councilman Ron Gibson, accompanied by a "No data centers" note, occurred after the council approved rezoning for the $500 million Metrobloks data center. A separate lawsuit has been filed to block a $4 billion data center project on the city's southwest side.
Councilmember Jesse Brown has called for a six-month moratorium on data center developments in Marion County, noting that a dozen other Indiana counties have already enacted similar pauses. The Citizens Action Coalition has criticized the proposed ordinance as too lenient, calling for stronger noise limits, clean energy requirements, increased setbacks, and mandatory annual water usage reporting.
The Metropolitan Development Commission is scheduled to consider the ordinance on May 20, with potential council introduction in June and adoption as early as July.
Microsoft's Chelan County Data Center Raises Energy Questions; Seattle Mayor Weighs Moratorium
Microsoft is constructing a data center campus in Malaga, Chelan County, Washington, with electricity demands comparable to a medium-sized city, according to reporting by both The Spokesman-Review and The Seattle Times. The company has contracted with Helion, an Everett-based fusion energy startup, to build what would be the world's first commercial fusion power plant adjacent to the data center, with a target of supplying power by 2028.
Nuclear experts have expressed skepticism about Helion's timeline. University of Michigan researcher Tom Lyon characterized the deal as "greenwashing," while UC San Diego scientist George Tynan cited Helion's lack of transparency on technical progress. Helion CEO David Kirtley maintains the deadline is achievable.
Chelan County PUD officials have stated Microsoft's data centers will operate on separate grid infrastructure, with the company covering construction costs and eventually required to generate or import 80% carbon-free power. However, competition for renewable energy from tech companies is reportedly driving up electricity costs for utilities and ratepayers statewide.
Seattle Mayor Katie Wilson is considering a moratorium on new data center projects in response to public backlash, per both outlets. Utilities in Grant County and the Puget Sound area have also expressed concerns about grid strain and potential rate increases.
Meta Revealed as Backer of Tulsa Data Center; Protests Mark Groundbreaking
A private groundbreaking event for a hyperscale data center in Tulsa, Oklahoma, revealed Meta as the backer of the project known as Project Anthem, according to Native News Online. The Phase 1 event for the 340-acre campus was invitation-only, while community members, tribal advocates, and two Tulsa City Councilors — Laura Bellis and Jackie Dutton — protested outside.
The Tulsa City Council had previously unanimously approved a citywide moratorium on new data center developments through 2026 following mounting opposition. Project Anthem has withdrawn its proposed Phase 2 in response to community pushback.
Protesters, including the Indigenous-led Honor the Earth and the Stop Data Colonialism Coalition, raised concerns about:
- Long-term effects on water supplies and electricity costs
- Lack of meaningful community engagement
- Potential conflicts of interest involving an attorney connected to the project who serves on the City of Tulsa Utility Board
Meta representatives have pledged to replenish water usage, avoid increasing energy costs, and invest in workforce development and low-income assistance. Opponents characterize these commitments as insufficient.
Ypsilanti Utilities Authority Enacts 12-Month Data Center Water and Sewer Moratorium
The Ypsilanti Community Utilities Authority (YCUA) unanimously approved a minimum 12-month moratorium on providing water and sewage services to data centers on April 22, 2026, as reported by The Eastern Echo. Resolution 26-08 covers hyperscale data centers, mid-sized data centers, AI computing facilities, and high-performance computational centers.
The moratorium halts new service connections, capacity reservations, infrastructure commitments, and preliminary approvals for covered facilities. It aligns with a prior 12-month zoning moratorium enacted by the Ypsilanti City Council and follows an April 15 request from the Ypsilanti Township Board.
YCUA cited concerns that hyperscale data centers can consume up to five million gallons of water daily and generate substantial wastewater. During the pause, YCUA will conduct studies on:
- Water supply and demand capacity
- Wastewater treatment capabilities
- Financial implications and infrastructure needs
- Environmental and sustainability effects
- Emergency preparedness
The studies are intended to be publicly accessible and reviewed by independent experts. The action comes amid community opposition to a supercomputing facility proposed for Ypsilanti Township by the University of Michigan and Los Alamos National Laboratory.
