Daily Digest — May 26, 2026
Federal Data Center Debate Intensifies as Congress Weighs Competing Bills
The national political debate over data centers has shifted decisively to Washington, with multiple congressional bills under consideration addressing electricity consumption, ratepayer impacts, and environmental concerns. According to multiple reports from local news outlets, key legislative proposals include:
- A moratorium bill on new AI data centers introduced by Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) until national safeguards are established
- Legislation from Sens. Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) to shield consumers from increased utility rates tied to data center energy use
- The Energy Bills Relief Act and the Power for the People Act, which aim to ensure data centers cover their own energy and infrastructure costs
Sen. Tim Kaine (D-Va.) has cautioned against a moratorium, citing potential competitive disadvantages for the U.S. The EPA has proposed changes to streamline permitting, including easing federal clean air permit requirements for new projects, as reported by the Missoula Current. The White House has introduced a "Ratepayer Protection Pledge" urging tech companies to build or buy new generation resources and pay the full cost. Meanwhile, the Data Center Coalition and firms including Microsoft and Oracle are actively lobbying Congress. Grassroots opposition remains strong, as demonstrated by community protests at a Box Elder County, Utah, commission meeting where a 40,000-acre data center campus was approved unanimously, according to Dailyfly News and KORN News Radio.
Data center issues move from states to Congress as federal debate intensifies
lockhaven.com
Data center battles started in the states. Now it’s at Congress
Missoula Current
Growing AI Demand Fuels Debate Over Electricity Costs
Dailyfly News
Data center battles started in the states. Now it’s Congress under siege
KORN News Radio
Granbury, Texas, Residents Push Back Against Data Center Developments
Residents in Granbury, Texas, are actively opposing data center projects including "Project Patriot," despite the Granbury City Council's vote to rezone 2,100 acres for the development, according to the Butler Eagle. Complaints center on noise, air quality, and potential electricity cost increases. Governor Greg Abbott has promoted Texas as an "epicenter of AI development," with the state offering an estimated $3 billion in sales tax exemptions over two years.
Local moratorium efforts have had mixed results. Hood County residents have failed twice to impose a moratorium, while nearby Hill County approved a one-year freeze. Hood County Attorney Matthew Mills has noted that Texas law provides limited authority for local governments to restrict development, and legal challenges are expected. Residents have filed lawsuits against MARA Holdings Inc. over noise from a Bitcoin mining facility and against the City of Granbury over the Project Patriot annexation and zoning, alleging city officials misled residents.
State Sen. Paul Bettencourt has engaged Texas Attorney General Ken Paxton on county moratoriums, but Paxton has maintained what the Butler Eagle describes as a "strategic silence." Some residents interpret this as allowing projects to proceed before a definitive ruling.
Jay, Maine, Data Center Project Delayed by International Shipping Disruption
A data center project planned for the former Androscoggin Mill site in Jay, Maine, faces delays due to international tensions and tariffs tied to Trump administration policies, according to the Bangor Daily News. A Pakistani company that purchased retired paper machinery cannot remove it because Iran has blocked ship passage through the Strait of Hormuz since a war began in late February. This is the second time Trump-era policies have impeded the mill's redevelopment.
The project remains politically significant in Maine. Governor Janet Mills vetoed a proposed statewide data center moratorium, citing Jay's project specifically. Other Maine towns — including Lewiston, Wiscasset, Sanford, Bangor, and Westbrook — have seen data center proposals rejected, paused, or face moratorium considerations. Jay's Select Board approved the project in March, and site owner Tony McDonald, partnering with Sentinel Data Centers, had aimed to convert the site by year-end. That timeline is now uncertain. McDonald has noted the data center would consume less electricity and water than the former paper mill.
Lawsuit Challenges $20B Joliet, Illinois, Data Center Rezoning
A lawsuit filed at the Will County Courthouse challenges the rezoning and approval process for the $20 billion, 795-acre Joliet Technology Center in Joliet, Illinois, according to Shaw Local. Plaintiffs, including members of Joliet Residents For Responsible Growth, allege that:
- The city's rezoning of agricultural land to light industrial is unconstitutional
- The city violated the Open Meetings Act during the approval process
- Residents were denied due process, including the right to cross-examine developers' witnesses
- A public notice for a special Plan Commission meeting failed to adequately describe the 1.8-gigawatt development
- An alleged conflict of interest exists involving Joliet Planning Director Jayne Bernhard, whose father reportedly has a financial stake in the project
The suit also raises environmental concerns, alleging the facility will consume 100,000 to 150,000 gallons of water daily from an aquifer projected to face peak demand issues by 2030. The data center's 1.8-gigawatt electrical demand is described as equivalent to the Hoover Dam's generating capacity. The Joliet City Council approved the project in an 8-1 vote on March 19. Developers project $2.1 billion in revenue for taxing bodies over 30 years, 7,000 to 10,000 construction jobs, and 700 permanent positions.
Mason County, Kentucky, Approves 2,000-Acre Data Center Zoning; Residents Face Displacement
The Mason County Fiscal Court approved zoning for a 2,000-acre data center project in Maysville, Kentucky, a decision that will force dozens of residents of the Meadowland Village trailer park to relocate, according to WCPO 9 Cincinnati. Residents have been offered $50,000 buyouts, and those remaining after July would have 90 days to vacate.
Resident Gregory Thomas Jones told WCPO he and his neighbors "got caught in the middle" of the development. Lisa Helphinstine said she has "no idea" where she will relocate. An official presenting to the Fiscal Court prior to the Friday night vote emphasized economic development benefits and stated that power availability would naturally limit the county's data center buildout.
A group of Mason County residents has filed a lawsuit, with a court hearing scheduled for June 26.
