Daily Digest — May 23, 2026
El Paso City Council to Consider Limiting Hyperscale Data Center Development
The El Paso City Council is preparing to discuss a policy framework next week that would discourage the recruitment and incentivization of future hyperscale data centers, according to the El Paso Herald Post. Councilman Chris Canales is spearheading the effort, citing high demands for electricity, water, and infrastructure from generative AI data centers.
The existing Meta data center project has grown from $1.5 billion to $10 billion following a pivot to AI tools, with projected water usage increasing from 400,000 to potentially 1 million gallons per day. Community opposition group Sembrando Esperanza has cited stress on the region's water supply, and updated forecasts from the El Paso Public Service Board for the expanded facility have not been released.
As KTSM 9 News also reported, the council is specifically considering discontinuing incentives for future hyperscale data center developments. The broader regional landscape includes lawsuits against Project Jupiter in Santa Teresa, NM, rejection of natural gas pipeline applications by New Mexico's State Land Commissioner, and Texas Agriculture Commissioner Sid Miller's call for a statewide temporary moratorium on data center construction.
East Vincent Township Denies Pennhurst Data Center Application
The East Vincent Board of Supervisors voted 3-0 to deny a conditional use permit for a 1.9-million-square-foot hyperscale data center at the former Pennhurst State School and Hospital site in Chester County, PA, according to pottsmerc.com and the Philadelphia Inquirer. The decision drew cheers from approximately 100 attendees.
Key factors in the denial:
- The township determined the project did not meet zoning requirements, rejecting the applicant's argument that data center offices, battery storage, and a gas-fired power plant qualified as multiple uses under the "industrial mixed use" overlay
- The project exceeded the 60,000-square-foot primary structure limit for planned commercial zoning
- The township planning and environmental commissions had previously recommended rejection
Developer Penn Hurst Holdings DE LLC stated the vote was "not unexpected" and plans to appeal to Chester County's Court of Common Pleas once a formal ruling is issued within 45 days. Attorney Matt McHugh argued the township has a legal obligation to provide zoning for data centers, and other legal challenges regarding zoning obligations are already pending. State Sen. Katie Muth, who has proposed a statewide data center moratorium, praised the decision. Food and Water Watch urged Governor Shapiro and state lawmakers to enact a statewide moratorium.
Citrus County, Florida Weighs 12-Month Data Center Moratorium
Citrus County commissioners are scheduled to hold a public hearing Tuesday on a proposed 12-month moratorium on new data center construction and expansion in unincorporated areas, as reported by the Citrus County Chronicle. The temporary halt would also prevent acceptance, review, or approval of related applications including rezoning requests, site plans, and building permits.
The proposed moratorium has already impacted Deltona Corporation's plans to expand and rezone 800 acres at Holder Industrial Park in the Lecanto-Inverness area for heavy industrial uses including data centers. Residents have raised concerns about water and electricity consumption, potential strain on the Floridan Aquifer, wastewater infrastructure, and impacts on wetlands and coastal ecosystems.
During the moratorium period, county staff would conduct a comprehensive study assessing infrastructure capacity, environmental impacts, and appropriate zoning standards. Local landowner Dixie Hollins urged commissioners to allow the standard review process rather than imposing a moratorium, suggesting proper regulation could enable benefits such as jobs and tax revenue.
Sierra Club Appeals Ruling on Shreveport Data Center Permit
The Sierra Club's Delta Chapter announced it will appeal a Caddo Parish judge's ruling that upheld a special-use permit for a STACK Infrastructure data center in west Shreveport, LA, according to The Center Square. The appeal to the Second Circuit Court of Appeal is due by June 26.
The appeal targets Judge Ramon Lafitte's April dismissal of litigation seeking judicial review of the Shreveport City Council's approval of the data center for Amazon Web Services. The city's planning commission had initially blocked the project. Two other tech hubs valued at $6 billion each are already under construction in north Bossier and rural Caddo Parish, while the Shreveport campus faced a 90-day stall after the initial litigation was filed. Plaintiffs Tyler Gordon, Michael Craft, and Mary Blakemore will retain attorneys Jack Bailey and Clay Garside for the appeal.
Luzerne County Judge Weighs Hazle Township Data Center Denial
A Luzerne County judge heard arguments on May 22 on whether Hazle Township supervisors lawfully denied land use approval for "Project Hazelnut," a proposed 15-building data center on 1,250 acres, as reported by the Hazleton Standard Speaker. The developer, NP Hazleton Holdings 1 LLC (an affiliate of NorthPoint Development), plans to appeal the denial.
Developer attorney Richard Williams argued the company followed procedures for 18 months and secured approvals from zoning officers, the planning commission, and the zoning board before supervisors denied the project at the "11th hour." Attorney Donald Karpowich, representing the supervisors, contended that data centers are not explicitly mentioned in the township's zoning ordinance and would require a special exception from the zoning board. Judge Lesa Gelb explored options including remanding the matter to the zoning board or challenging the ordinance's validity. A decision is pending.
