Daily Digest — May 30, 2026
Hill County, Texas, Faces $100M Lawsuit Over Data Center Moratorium as Residents Rally Behind Officials
Hill County, Texas, continues to be a flashpoint in data center development disputes as developer RCM Hill has filed a $100 million lawsuit against county officials over a year-long moratorium on data center construction. According to KVUE, the moratorium was implemented to give the county time to assess potential impacts on local water resources, power grids, and general infrastructure. RCM Hill alleges it invested millions preparing a large data center project near Hillsborough, securing land and funding that are now unusable.
The lawsuit names Judge Shane Brassel and two county commissioners, as reported by 25 News KXXV. RCM Hill contends that county leaders were aware of the moratorium's potential illegality before approving it, citing statements commissioners made in public meetings acknowledging the lack of clear legal authority under state constitution or statute. The developer is petitioning a judge to nullify the moratorium and prevent its enforcement.
Residents have overwhelmingly supported county officials amid the legal challenge. According to KCENNews, constituents packed a special meeting and likened commissioners to "soldiers at the Alamo." A subsequent Commissioners Court meeting saw additional public comment opposing the development, with residents voicing concerns about the county's rural character, as reported by KXXV. Judge Brassel announced that several agenda items, including discussion of a waiver to the moratorium, would be tabled and rescheduled. Hill County Attorney David Holmes declined to comment on the ongoing litigation, per KCENNews.
Hill County residents support Commissioners Court amid lawsuit over data center moratorium
KCENNews
Hill County, Texas Residents Oppose Data Center Development; County Tables Moratorium Waiver Discussion
KXXV
Hill County officials sued $100M over data center moratorium
25 News KXXV
Texas county sued over data center moratorium
KVUE
Hill County faces lawsuit over data center construction pause
KCENNews
Utah's Stratos Project Faces Executive Order, Referendum Rejection, and Ongoing Controversy
Utah Governor Spencer Cox has signed a new executive order directing state agencies to place greater emphasis on water resources, air quality, and wildlife mitigation when evaluating data center projects, according to KSL.com. The order is a direct response to public outcry over the proposed 40,000-acre Stratos Project in Box Elder County, which could require up to 9 gigawatts of power. Governor Cox also floated the possibility of a special legislative session, potentially in September, for lawmakers to enact additional data center policies.
Meanwhile, Box Elder County officials have rejected referendum applications filed by the Box Elder Accountability Referendum (BEAR) group seeking to overturn the county's approval of the Stratos Project, as reported by The Herald Journal. County Attorney Stephen Hadfield determined that the resolutions approving participation in the Military Installation Development Authority (MIDA) project area are administrative actions, not legislative acts, and therefore ineligible for public vote. BEAR has indicated it will challenge the denial in court. A fiscal impact analysis estimated that repealing the resolutions could cost the county approximately $5.4 million annually in guaranteed revenue, and an estimated $108 million annually at full project capacity.
An opinion piece in Deseret News by Karen Crompton of the Utah Citizens' Counsel raised additional environmental concerns, including:
- The project's 9 GW electricity demand — more than double Utah's continuous statewide demand
- Plans to burn natural gas on-site to meet power needs
- Utah State University calculations suggesting 16 GW of thermal energy output could raise local nighttime temperatures by 8°F to 28°F
- Potential acceleration of evaporation in the Great Salt Lake's northern arm
The project's backer, Kevin O'Leary, has continued to characterize opposition as driven by "misinformation," as reported by KSL TV 5. O'Leary previously claimed Chinese interests were funding opposition efforts, allegations that local political strategists named in his comments have denied, according to inkl.
Investor Kevin O'Leary Claims China Is Behind Opposition to His Utah Data Center
inkl
Opinion: Stratos Project Data Center Raises Environmental Concerns in Box Elder County, Utah
Deseret News
Box Elder County rejects effort to bring data center approval to voters
The Herald Journal
Video: Kevin O’Leary sees Utahns protest, says there is lots of ‘misinformation’
KSL TV 5
Pennsylvania Governor Unveils GRID Standards as Data Centers Become Central Campaign Issue
Governor Josh Shapiro has introduced the Governor's Responsible Infrastructure Development (GRID) Standards, linking state tax benefits — including sales tax exemptions on computer equipment — to accountability requirements for data center developers, according to PhillyVoice. The standards address energy affordability, environmental impact, noise, transparency, workforce development, and community benefit agreements. Projects meeting the criteria would be eligible for a fast-track permitting process, as reported by Erie News Now.
The proposal has drawn criticism from multiple directions:
- Environmental groups including Food and Water Watch Pennsylvania argue it fails to hold developers adequately accountable and does not require new clean energy capacity
- The Data Center Coalition voiced concerns the framework could impede development
- Republican gubernatorial candidate Stacy Garrity is campaigning on a promise to impose a moratorium on hyperscale data center projects, as reported by WGAL
- Two Republican state lawmakers, Sen. Jarrett Coleman and Rep. Jamie Walsh, have introduced legislation to repeal existing data center sales tax breaks and grant municipalities authority to implement 18-month moratoriums on new applications
The issue has become a defining policy divide in Pennsylvania's governor's race, with Shapiro urging the legislature to codify GRID standards and Garrity pushing for a development pause, per State Affairs. Political analyst Berwood Yost of Franklin & Marshall College noted the issue resonates with voters due to concerns about electricity costs and quality of life, according to WGAL.
Gov. Shapiro's plan ties sustainability, transparency to tax breaks for data center developers
PhillyVoice
GRID Lines Out Data Centers Rules in Pennsylvania
Erie News Now
Governor's Race | Data center projects in Pennsylvania are drawing attention and sparking debate
WGAL
Pennsylvania data center projects fuel debate in governor's race
wgaltv
Pennsylvania governor candidates clash over data centers
State Affairs
Archbald, Pennsylvania: School District Joins Legal Fight Against Proposed Data Center Campuses
The Valley View School District has formally entered the legal battle against data center developments in Archbald, Pennsylvania, filing two petitions in Lackawanna County Court and sending a letter to Archbald Council opposing the projects, according to the Scranton Times-Tribune. The district is challenging the 18-building Project Scott and seven-building Project Gravity, both located near Valley View schools along Eynon Jermyn Road, where 30 of the borough's 51 proposed data center buildings are sited near schools and residential areas.
The district's filings cite legally enforceable interests in:
- Student safety and school operations for approximately 2,400 students and staff
- Traffic, noise, and emergency access impacts on school routes
- Water and sewer capacity, electrical reliability, and air quality
- Anticipated impacts from industrial-scale electrical loads, substations, diesel backup generators, and high-volume water demand
The district plans to file its own land-use appeal against Project Scott, disputing developer Archbald I LLC's claim of automatic approval due to a procedural issue regarding public hearing deadlines. For Project Gravity, the district is asking Archbald Council to reject its principal permitted use designation and require a conditional use hearing.
Separately, Governor Shapiro made an unannounced visit to Archbald to discuss data center proposals, drawing mixed reactions from residents and local officials, as reported by FOX56 WOLF TV. Council Vice President Joseph Altier and Council President Lou Repucci expressed disappointment at not being invited, and opposition group founders questioned whether the governor's newly announced GRID standards would apply to projects already proposed in the borough.
Birmingham, Alabama: Nebius AI Data Center Lawsuit Expands as Separate Zoning Challenge Dismissed
Oxmoor Valley residents have expanded their class-action lawsuit against the Nebius AI data center project in Birmingham, Alabama, alleging a $90 million land-flipping scheme, according to WBRC. The amended complaint, filed May 25 in Jefferson County Circuit Court, alleges that intermediate companies rapidly resold the Milan Parkway site, inflating its cost from approximately $20 million to $90 million within roughly 24 hours. Three new defendants have been named: Raeden RE, LLC; 201 Milan Birmingham, LLC; and Lakeshore Data Center, LLC.
The complaint draws a connection between contractor Hoar Construction and Lakeshore Data Center, LLC, noting shared addresses and Robert O. Burton serving as CEO of Hoar and manager of Lakeshore. The lawsuit reiterates claims that the city violated its own zoning laws by permitting the 300-megawatt facility. Residents are seeking a court order to halt construction, declare the project unlawful, and roll back permits.
In a separate development, a judge has dismissed a lawsuit filed against the Birmingham Zoning Board concerning the data center project, according to AL.com. Additionally, Heatmap News reported allegations that local police retaliated against a woman who had previously sued data center developers in Birmingham.
