Daily Digest — May 16, 2026
Reno Becomes First Nevada City to Enact Data Center Moratorium
The Reno City Council has voted to adopt a temporary moratorium on new data center applications, making it the first local government in Nevada to take such action, according to the Reno Gazette Journal. The pause halts processing of new applications until June 13 and follows a special meeting that drew six hours of public comment and 176 public letters, most favoring the moratorium.
The council has also requested that changes to data center regulations be fast-tracked, though no vote date has been set. As reported by News 4 Reno, the measure is intended to give the city time to develop stricter regulations concerning data center location, sound, and environmental impacts including energy and water usage. Currently, Reno's city code classifies data centers under general warehouse development requirements, with no specific rules for water usage, power usage, or noise levels.
Council member Kathleen Taylor cast the sole dissenting vote, calling the moratorium "bad business" and "lazy," and arguing for predictable conversations with regional partners instead, according to the Reno Gazette Journal. Council member Brandi Anderson supported the vote despite reservations, to allow time for new regulations. Many citizens pushed for a permanent ban on new data centers during public comment, as reported by ThisIs Reno. The Las Vegas Review-Journal and The Bosma on Business Podcast also covered the development.
Temporary pause put on new data centers in Reno. Now what?
Reno Gazette Journal
Reno council passes temporary data center moratorium as citizens push for permanent ban
Thisis Reno
This Nevada city is the first to pause new data centers
Las Vegas Review-Journal
Reno City Council adopts pending moratorium on new data centers
News 4 Reno
Reno approves data center moratorium
The Bosma on Business Podcast and Radio Show
Cleveland Weighs Data Center Moratorium as $1.6B Slavic Village Project Denied
Cleveland city officials are advancing a proposed moratorium on new data center permits to allow time to update the city's outdated zoning code, according to NEOtrans. The City Planning Commission has accepted amendments to the proposal, including extending its potential timeline to up to one year. Chief Zoning Administrator Shannan Leonard emphasized the need for comprehensive definitions that include accessory facilities like generators.
Meanwhile, the city's Building Department has denied a permit for Lakeland Equity Group's proposed $1.6 billion, 150-megawatt hyperscale campus in the Slavic Village neighborhood, as reported by Cleveland Magazine. The project planned for three buildings across 35 acres of land owned by Morabito Enterprises. The application was rejected due to a lack of required planning documents; Lakeland Equity Group has stated its intention to continue working with local officials.
H5 Data Centers is separately planning an expansion of its existing downtown facility. Ward 15 Councilman Charles Slife, author of the moratorium legislation, intends for it to go through committee review for public and stakeholder input. According to NEOtrans, this process makes passage before City Council's summer recess unlikely, potentially giving developers more time to secure approvals under the current code. Cleveland.com has also raised the question of whether data centers should pay higher electricity rates.
Imperial County Faces Dueling Lawsuits Over Data Center Prohibition Ballot Initiative
Five Imperial County, California residents have filed a lawsuit to block the proposed "Imperial County Data Center Prohibition Act" from reaching voters, according to the Imperial Valley Press Online. The ballot initiative, filed on April 30, would ban large-scale data centers consuming five megawatts or more in unincorporated county areas.
The petitioners argue the measure violates state single-subject rules by combining a land-use ban with government ethics and enforcement provisions. They also contend the initiative is unconstitutionally broad, citing concerns about:
- A retroactivity clause
- Provisions designed to disable legislative revision
- Strict personal liability for county employees
- Misdemeanor penalties for non-compliance
Proponents of the ban argue that data centers threaten Imperial County's Colorado River water supply and the Salton Sea's environmental stability, and point to high pediatric asthma rates linked to toxic dust exposure. In a separate action, the City of Imperial has filed a lawsuit challenging the county's approval of a grading permit for Imperial Valley Computer Manufacturing, LLC. Both cases are before Judge L. Brooks Anderholt.
Upstate New York Communities Grapple With Data Center Surge
Upstate New York is facing a rapid increase in data center proposals, prompting Governor Kathy Hochul to order the state Public Service Commission to conduct a year-long review of potential regulations, according to the Malone Telegram. Recommendations are expected for public comment by next February.
Several specific projects illustrate the tensions:
- **Genesee County:** Stream Data Centers (owned by Apollo Global Management) plans a $19.5 billion, 500-megawatt facility at the STAMP industrial park, facing opposition from the Tonawanda Seneca Nation over tax breaks
- **Lysander:** Residents have petitioned for a moratorium against a planned 300-megawatt data center before a permit application has even been filed
- **North Tonawanda:** Digi Power X faces a federal class-action lawsuit from neighbors over persistent noise and vibrations from an existing facility
Critics, including Earthjustice attorney Mandy DeRoche, argue data centers are under-regulated, leading to rushed decisions by small-town officials who prioritize property tax revenue over broader impacts. NYISO advises on grid connections but does not consider cost implications, leaving local authorities to weigh projects based on PILOT payments and limited permanent job creation.
Former Rep. Chaffetz Endorses Controversial Box Elder County Data Center
Former U.S. Representative Jason Chaffetz has publicly endorsed the Stratos Project data center planned for Box Elder County, Utah, calling it "a huge net positive" for the state, according to ABC4 Utah. The project, approved by the Box Elder County Commission in partnership with the Military Installation Development Authority (MIDA), covers 40,000 acres.
Chaffetz highlighted several aspects of the developers' plans:
- Energy sourced independently, avoiding draws from the existing electrical grid, with surplus power potentially fed back
- Natural gas supplied via the existing Ruby Pipeline
- Water sourced from existing low-quality, brackish water rights at a premium price, with developers claiming no additional water demand
- Projected annual tax revenue exceeding $100 million for Box Elder County
The project continues to face resident opposition over concerns about water resources, air quality, and impacts on the Great Salt Lake. Chaffetz also suggested the project would enhance the strategic value of Hill Air Force Base. Investor Kevin O'Leary, who is involved in the project, has also defended it against criticisms.
