Daily Digest — May 5, 2026
Tuesday, May 5, 2026

Daily Digest — May 5, 2026

Box Elder County Approves Massive Data Center Despite Public Protests

The Box Elder County Commission in Utah voted to approve the "Stratos Project," a hyperscale data center and energy campus proposed for the Hansel Valley near Snowville, according to multiple reports from KUER, KSL News Utah, and The Herald Journal. The project is a collaboration between O'Leary Digital (also referred to as Ori Digital), co-founded by investor Kevin O'Leary and CEO Paul Palandjian, and Utah's Military Installation Development Authority (MIDA). The site spans over 40,000–50,000 acres near the Great Salt Lake.

The vote grants MIDA consent to establish the project area and initiate its own land use planning process — commissioners emphasized it is not a direct construction approval. Key details of the interlocal agreement, as reported by KSL News Utah, include:

- Prohibition on residential development within the project area

- Mandate for closed-loop cooling systems

- Noise limits at project boundaries

- Projected annual tax revenue of approximately $30 million in the initial phase, scaling to $108 million at full buildout

The facility could require up to 8–9 gigawatts of power at full buildout, generated on-site using natural gas from the Ruby Pipeline — an amount approaching double Utah's current electricity demand. Commissioners cited the county's lack of zoning authority over the largely unzoned land as a key factor and framed the vote as centered on property rights.

Hundreds of residents protested at the meeting, forcing commissioners to relocate to a remote session for the vote. Opposition centers on water usage, air quality, and impacts on the Great Salt Lake. Over 1,500 individuals have filed protests with the Utah Division of Water Rights regarding a proposed change from agricultural to industrial water rights. The Bear River Water Conservancy District's Chance Baxter noted limited groundwater in Hansel Valley but stated the district found no grounds to formally protest the water right change, as the water is privately owned with limited alternative uses, according to KSL News Utah.

O'Leary Digital CEO Paul Palandjian stated the planned power plant would produce only 5% of the carbon emissions compared to similar facilities and that the data center would use a closed-loop chilling system requiring minimal water, as reported by KSL News Utah. No project-specific environmental impact study has been publicly released. Opponents are prepared to pursue litigation over the water rights transfer. The first phase of development is expected to commence within months.


Indianapolis Approves Martindale-Brightwood Data Center, Passes Non-Binding Moratorium Resolution

The Indianapolis City-County Council approved a rezoning request for a Metrobloks data center in the Martindale-Brightwood neighborhood, according to WFYI. The project involves a data center complex on a 14-acre former drive-in theater site. The approval came despite months of opposition from residents in the historically Black community who raised concerns about pollution, noise, water consumption, and strain on the power grid.

Separately, the council passed a non-binding special resolution introduced by District 13 Councilor Jesse Brown urging the Metropolitan Development Commission to temporarily halt approvals for high-impact data centers until May 7, 2027, or until more comprehensive zoning regulations are established, as reported by WISH-TV, WRTV, and IndyStar. Key context:

- Indianapolis currently lacks specific zoning regulations for data centers

- Four data center projects sought approval in the past year; two were approved (Martindale-Brightwood and Decatur Township) and two were withdrawn (Franklin and Pike townships)

- City officials are drafting a new zoning ordinance addressing noise limits and utility plan requirements, expected to be introduced in June with a potential vote in July

The approval process was marked by a reported shooting incident at the home of Councilor Ron Gibson, who supported the data center; a note reading "No Data Centers" was left behind. No arrests have been made, according to WFYI.


Cheyenne Residents Petition for Data Center Moratorium; Cox Ranch Annexation Revisited

A grassroots petition in Cheyenne, Wyoming, is calling for a moratorium on new data center construction in Laramie County, according to Cowboy State Daily. Organizer Heather Madrid aims for 7,000 signatures, with hundreds already collected. Ward I Councilman Larry Wolfe stated there are as many as 70 data centers in various stages of discussion for the county.

Petition organizers argue the pace of development has outstripped the city's planning framework and that regulations are insufficient for hyperscale facilities. Cheyenne LEADS CEO Betsey Hale defended existing processes, stating data centers have been a local development focus for two decades and called for an updated land-use plan rather than a moratorium. State Senator Cale Case (R-Lander) expressed sympathy for a temporary pause and plans to reintroduce legislation concerning electricity tax collected from data centers, as reported by Cowboy State Daily.

Separately, Cheyenne's Public Services Committee is scheduled to revisit the land-use map amendment for the Cox Ranch project, a nearly 1,200-acre proposed data center site, according to Cap City News. The City Council previously delayed annexation and zoning decisions until September following public opposition. Residents of the Rolling Hills area have raised concerns about local aquifers, increased traffic, and loss of rural character.


Pennsylvania: Union-Industry Alliance, New Data Center Proposal, and PUC Ratepayer Protections

Building trades unions are increasingly partnering with major tech companies to construct data centers and advocate for the industry at the state and local level, according to reports from Spotlight PA, The Keystone Newsroom, and 90.5 WESA. In Pennsylvania, union leaders such as Rob Bair of the Pennsylvania Building and Construction Trades Council emphasize job creation and encourage communities to negotiate for local benefits. Unions have opposed legislative efforts including a statewide moratorium in Maine and proposed energy standards in Illinois, and have countered community opposition at local meetings in multiple states. Pennsylvania Senator Katie Muth noted challenges in passing stronger data center regulations due to union opposition.

Separately, a new data center complex featuring 10 buildings has been proposed near a central Pennsylvania highway, according to PennLive.com.

The Pennsylvania Public Utility Commission advanced a proposed model tariff providing guidance on connecting high-demand electricity users like data centers, according to WVIA Public Media. Key provisions include:

- Defining large-load customers as those requiring over 50 MW individually or 100 MW in aggregate

- Imposing fees on developers who prematurely terminate contracts

- Mandating contributions from large-load customers to universal service programs

- Permitting large-load customers to construct their own infrastructure upgrades when feasible

- Recommending utilities recover all necessary transmission and distribution costs directly from large-load customers

The tariff is currently non-binding. PUC Chairman Stephen DeFrank cited "explosive load growth" from data centers. The Data Center Coalition called the framework "generally structured, transparent, and workable." Elizabeth Marx of the Pennsylvania Utility Law Project cautioned that without binding regulations, upgrade costs could still be passed to residential customers.