Daily Digest — May 6, 2026
Camdenton, Missouri Enacts One-Year Data Center Moratorium, Rescinds Opportunity Zone Support
The Camdenton Board of Aldermen voted unanimously on May 5 to impose a one-year moratorium on data center development within city limits and rescinded its prior support for a proposed opportunity zone designation, according to The Lake Sun. The moratorium covers all data center approvals, permitting, and construction. City Administrator Jeff Hooker noted that existing industrial zoning on certain properties could have allowed data centers under current regulations, making the pause necessary.
The action followed a contentious public meeting that drew standing-room-only crowds to City Hall, with approximately 25 people turned away, as reported by KY3. Residents voiced concerns about water usage, electricity demand, and potential pollution. One resident likened an AI data center to "cancer" in terms of growth. Mayor John McNabb stated his consistent opposition to a data center in Camdenton and directed staff to begin drafting permanent regulations.
The opportunity zone had been requested by MO Lake Development as part of a larger project involving a 2,000-acre annexation proposal. According to KRCG, the company's CEO Blake Hodits described the data center as one component of a broader early-stage development plan including housing, retail, and hospitality. The Camden County Commissioners separately voted against supporting the opportunity zone designation, and State Representative Jeff Vernetti withdrew his support, both citing data center concerns.
Mayor McNabb plans to begin discussions on permanent data center regulations in the coming weeks, aiming to complete an ordinance within six to eight weeks. The city may mirror Camden County's requirements for developers to provide their own water and power infrastructure and meet environmental safeguards.
Camdenton aldermen rescind support for opportunity zone, approve moratorium on data centers
The Lake Sun
Camdenton Board of Aldermen pass data center moratorium, rescind Opportunity Zone support
KRCG
Camdenton residents pack city hall to voice opinions on the city’s proposed AI data center moratorium
KY3
Camdenton, Mo., residents pack city hall to voice opinions on the city’s proposed AI data center moratorium
KY3
Camdenton Board of Aldermen meeting over data center
KRCG 13
Indianapolis Council Unanimously Calls for Data Center Pause, Approves Martindale-Brightwood Project
The Indianapolis City-County Council unanimously passed Proposal No. 158 on May 4, a resolution urging the Metropolitan Development Commission to temporarily halt new data center rezoning petitions and improvement location permits until May 7, 2027, or until a special use district zoning amendment is adopted, according to WTHR. The Department of Metropolitan Development is proposing new zoning rules that would formally define data centers in the city code and establish a new special use district (SU-47).
Proposed regulations include:
- Maximum noise limit of 65 decibels at the property line
- Mandatory physical buffers
- Requirements for developers to demonstrate adequate access to power and water
- Mandatory rezoning process and public hearing with detailed plans including noise studies and utility demand
Despite the broader pause resolution, the council in the same session approved an existing rezoning request for a Metro Blocks data center on approximately 13 acres near East 25th Street and Sherman Drive in the Martindale-Brightwood neighborhood, as reported by IndyStar and WFYI. The meeting drew nearly 100 residents. Councilor Jesse Brown's motion to compel a full council vote and public hearing on the Metrobloks project failed. Councilman Ron Gibson, who represents the affected area, supported the project. Critics, including Citizens Action Coalition Program Director Ben Inskeep, have suggested the proposed regulations may not be stringent enough, according to WTHR.
Indy council asks for pause in data center approvals, denies Martindale-Brightwood appeal
Inside INdiana Business
Indy councilors call for data center pause, approve Martindale-Brightwood site
IndyStar
City-County Council passes unanimous resolution calling for a pause on data center development in Indianapolis
WTHR
Final votes on data center and curfews at Indianapolis City-County Council | WFYI News Now
WFYI
Indianapolis council votes to curb data center development
WTHR
Virginia Localities Grapple With Data Center Regulation Amid Legal Battles and Community Pushback
Virginia communities are contending with rapid data center expansion near historical sites, farmlands, and sensitive areas, straining local regulatory capacity, according to The Northern Virginia Daily. Dominion Energy has reported processing applications for 70 gigawatts of electricity primarily for new data centers, which would nearly triple its peak energy load.
Key legal and regulatory developments:
- The Virginia Court of Appeals struck down a rezoning for the Prince William Digital Gateway, a large proposed data center campus near Manassas National Battlefield Park, following a lawsuit by the American Battlefield Trust and local landowners. The Prince William County Board of Supervisors decided not to appeal.
- Similar legal action targets the Wilderness Crossing development in Orange County, which includes a data center complex near Civil War battlefields.
- In Culpeper County, community resistance in Brandy Station led to the withdrawal of data center proposals near the new Culpeper Battlefields State Park after the planning commission recommended denial.
State budget negotiations remain stalled over a Senate proposal to end data centers' sales and use tax exemption, which saved the industry $928 million in 2023. House lawmakers and Governor Abigail Spanberger seek to preserve the exemption while ensuring fair energy contributions. Economist João Ferreira of the University of Virginia Weldon Cooper Center noted that the lure of increased tax revenues often tempts governments to relax regulations, creating a "race to the bottom."
Sierra Club Moves to Join Legal Challenge Against Imperial County Data Center Approval
The Sierra Club filed a motion on May 1 to intervene in a lawsuit challenging Imperial County's approval of a hyperscale AI data center project by Imperial Valley Computer Manufacturing, LLC, according to The Desert Review. The environmental group seeks to join a case originally brought by the City of Imperial against the County, arguing the project — a facility projected at nearly one million square feet for AI and machine learning — was approved without adequate environmental review under the California Environmental Quality Act (CEQA).
The Sierra Club cites potential impacts on air quality, water resources, agricultural land, public health, and the Salton Sea. Separately, local residents and property owners have filed a lawsuit challenging a proposed ballot initiative, the "Imperial County Data Center Prohibition Act," which would ban data centers countywide above certain size and power thresholds. Petitioners argue the initiative violates the single-subject rule and contains unlawful provisions.
