Daily Digest — May 13, 2026
Cave City, Kentucky Enacts One-Year Moratorium on Data Center Development
The Cave City City Council voted 4-1 to enact a one-year moratorium on all data center permits and simultaneously rejected proposed zoning amendments that would have regulated data center uses, according to WBKO and the Bowling Green Daily News. Councilman Denny Doyle was the sole dissenting vote on both measures. The moratorium halts the acceptance or processing of applications for data center establishment, construction, or expansion within city limits.
The decision directly impacts Discovery, a data center developer that had expressed interest in building a facility in the area. Councilwoman Leticia Cline said the rejected zoning amendments would have made data centers a permitted use without requiring a conditional use process, bypassing public input, as reported by WNKY. Community members cited concerns about water usage, power grid strain, and potential effects on the local karst region, including Mammoth Cave National Park.
Mayor Dwayne Hatcher stated he was not in favor of the moratorium but agreed more information was needed. According to WCLU Radio, the meeting drew a standing-room-only crowd, with residents chanting "Cave City says no." The moratorium ordinance requires a second reading to take effect; a special meeting is scheduled for the coming days.
Indianapolis Faces Multiple Data Center Legal Challenges and New Zoning Proposals
Residents of the Martindale-Brightwood neighborhood in Indianapolis have filed a lawsuit against the Indianapolis Metropolitan Development Commission, Metrobloks, and Sherman Investments to block an approved $500 million data center project, according to the Indianapolis Business Journal. The legal complaint, filed in Marion County Superior Court, seeks an injunction to prohibit construction and to invalidate the rezoning approval for a nearly 14-acre site at 2505 N. Sherman Ave., as reported by WFYI.
The coalition, which includes the Hoosier Environmental Council, cites concerns about potential groundwater contamination at the former drive-in movie theater site and alleges the project constitutes "environmental racism." Metrobloks had stated plans to use a closed-loop cooling system and power the facility through contracts with AES Indiana. This follows a similar legal challenge by Decatur Township residents against a proposed Sabey Corp. data center campus.
Separately, City-County Councilor Michael-Paul Hart has scheduled a community meeting for May 21 regarding DC Blox's proposed $2 billion data center campus on a 150-acre former Ford plant site in Warren Township, according to Mirror Indy. A public comment session is set for June 11. Indianapolis has also proposed new citywide data center zoning and noise regulations, though critics say the protections are inadequate, as reported by WFYI.
Martindale-Brightwood residents cite environmental concerns in suit against data center plan
Indianapolis Business Journal
Martindale-Brightwood residents take data center fight to court, citing environmental racism
WFYI
Eastsiders get another chance to hear about a proposed data center
Mirror Indy
Indianapolis proposes new data center zoning and noise regulations
WFYI
North Texas Communities Split on Data Center Growth: Red Oak Approves, Somervell County Opposes
The Red Oak City Council voted 4-1 to approve rezoning for an 830-acre high-tech industrial park for Compass Datacenters, despite overwhelming community opposition, according to KERA News and the Dallas Observer. The project will become Red Oak's sixth data center campus. Over 150 residents attended the late-night meeting, and a petition opposing the project gathered nearly 1,600 signatures in the town of 20,000, as reported by WFAA.
The approval came despite the Red Oak planning and zoning board recommending denial. The council adopted several zoning conditions including:
- Closed-loop water-cooling systems
- Lighting shielding requirements
- Decibel limits at property lines
- A ban on cryptocurrency mining
- A $2.82 million tax abatement over the next decade
City staff referenced Texas Senate Bill 6, which mandates high-demand industrial customers use a "kill switch" during grid emergencies, according to the Dallas Observer. A planned $72 million investment in electric grid reinforcements was also cited.
Meanwhile, the Somervell County Commissioners Court unanimously passed a resolution opposing all new data center developments until state lawmakers address water and energy regulation concerns, as reported by KERA News. This came months after the county had approved incentives for a proposed Amazon data center near the Comanche Peak Nuclear Power Plant. Additional coverage from CBS Texas and NBC 5 Dallas-Fort Worth confirmed the developments.
Oppose? Expand? Votes in 2 North Texas communities highlight a divide over data center growth
KERA News
Red Oak residents pack council meeting to oppose proposed 800-acre data center campus
WFAA
Red Oak City Council approves 830-acre data center amid community opposition
Dallas Observer
Another North Texas city approves rezoning for new data center as residents voice concerns
CBS TEXAS
City of Red Oak votes to make way for data center
NBC 5 Dallas-Fort Worth
Hill County, Texas Becomes One of First Counties to Impose Data Center Moratorium
The Hill County Commissioners Court voted to impose a temporary moratorium on data centers following extensive public comment, according to KXXV. The decision makes Hill County one of the first counties in Texas to enact such a ban. The moratorium followed a packed City Hall meeting in Hillsboro where the Planning and Zoning Commission tabled discussions on new data center requirements, as reported by KCENNews.
Provident Data Centers is seeking to build a facility on 300 acres in North Hillsboro, which has driven much of the local debate. Residents raised concerns about elemental contamination, noise and light pollution, and industrial waste. One resident proposed that data center developers be required to provide advance remediation bonds to cover potential cleanup costs.
The city of Hillsboro is also separately considering redefining its data center zoning regulations, according to KXXV. Hill County leaders have noted being approached by several construction companies regarding data center projects in recent weeks.
