Daily Digest — June 2, 2026
Utah Senate President Asks O'Leary to Shrink 40,000-Acre Data Center by 75%; O'Leary Refuses
Utah Senate President J. Stuart Adams has publicly called on investor Kevin O'Leary to reduce the proposed 40,000-acre Stratos Project data center in Box Elder County to 10,000 acres — a 75% reduction. In a letter to O'Leary, Adams also requested stricter environmental and transparency measures, including returning excess water to the Great Salt Lake and protecting wildlife, according to the Deseret News. Adams chairs the board of the Utah Military Installation Development Authority (MIDA), which unanimously approved the project in early May. His requests carry no legal weight.
O'Leary has rejected the demand. As reported by The Salt Lake Tribune, O'Leary called the request "outrageous" and stated he would not back out of the agreed-upon deal.
The project has generated significant public opposition. A voter referendum attempt to overturn the county's approval was rejected by officials, who deemed the issue not legally referable to voters. Governor Spencer Cox has initiated a review of the project by five state departments covering drinking water, water quality, water rights, air quality, and wildlife resources, according to FOX 13 News Utah. Cox also issued an executive order establishing statewide guidelines for large data center projects, emphasizing:
- Transparency
- Responsible water and energy use
- Air quality protections
- Wildlife protection
- Reference to a 2025 state law preventing data center power development from increasing electricity costs for residents
Adams's demands also include commitments to heat capture, land conservation, and environmental performance standards, as reported by KSL NewsRadio. Separately, a Box Elder County resident has created yard signs protesting the project's water usage, according to ABC4 Utah.
Utah Senate president to O’Leary: Make it 30,000 acres smaller
Deseret News
Kevin O’Leary responds to ‘outrageous’ demand to slash data center plan
The Salt Lake Tribune
In response to public pressure, Senate President wants data center footprint shrunk
FOX 13 News Utah
Utah Senate President Adams calls for 75% reduction in area for proposed Box Elder County data center
KSL NewsRadio
Utah man creates yard signs to protest data center water usage
ABC4 Utah
Michigan: Oracle-OpenAI Data Center Breaks Ground in Saline Township Amid Statewide Debate
The Oracle-OpenAI data center project in Saline Township, Michigan has officially broken ground, according to The Detroit News. OpenAI CEO Sam Altman described the facility as a "huge bet" on artificial intelligence, per a separate Detroit News report. The project, a partnership between OpenAI and Oracle being built by Walbridge, is valued at $7 billion, as reported by MLive.com.
The groundbreaking occurs against a backdrop of broader statewide tension over data center development. According to The Manchester Mirror, Michigan business leaders speaking at the Mackinac Policy Conference warned the state risks losing a "golden ticket" of investment if it doesn't overcome local opposition. Consumers Energy CEO Garrick Rochow confirmed the utility is working with two large hyperscalers currently in the zoning process. However, data centers have been proposed in 11 Michigan counties and face resistance:
- A recent poll found only one-third of Michiganders support a data center within 25 miles of their home
- Three-quarters favor stricter regulations, such as requiring developers to pay for infrastructure upgrades
- Some communities have adopted data center moratoriums
- U.S. Rep. John James and State Sen. Mallory McMorrow have expressed reservations
Google has also planned a 282-acre facility in Van Buren Township, Wayne County. Former Energy Secretary Jennifer Granholm, now an industry consultant, suggested community benefit agreements as a path forward. An opinion piece in The Holland Sentinel highlighted unanswered questions about data center policy and community impacts across the state.
Oracle, OpenAI data center begins to rise in the farmland of Michigan
The Detroit News
OpenAI's Sam Altman says Michigan data center a 'huge bet' on AI
The Detroit News
Michigan data center breaks ground amid controversy
MLive.com
Biz leaders push data centers, warning Michigan may miss ‘golden ticket’
The Manchester Mirror
Unanswered Questions Surround Michigan Data Centers
The Holland Sentinel
Reno City Council Adopts Data Center Moratorium Through August 2027, Begins Drafting Regulations
The Reno City Council voted 6-1 to extend a moratorium on conditional use permits for data centers until August 31, 2027, according to the Las Vegas Review-Journal. The moratorium, which does not affect previously permitted facilities, makes Reno the first city in Nevada to implement such a measure. Councilmember Kathleen Taylor, a mayoral candidate, cast the sole dissenting vote.
The eight-hour special meeting drew dozens of residents, environmental activists, union stewards, tribal members, and political candidates, as reported by mynews4.com. Most speakers supported the moratorium or stricter measures, citing concerns about:
- Water and electricity consumption
- Carbon emissions from backup diesel generators
- Air pollution
- Strain on the energy grid
Autumn Harry, a Pyramid Lake Paiute tribal member and founder of the Water Over Data Alliance, called data centers "another form of water theft" and "land theft" impacting tribal communities. Opposition came from local trade unions, including Sheet Metal Workers Local 26, and the Nevada Data Center Alliance, which argued data centers are essential infrastructure and should be regulated like other industrial uses, per KOLO.
City staff have been directed to develop new data center regulations potentially covering water and energy usage, sustainability, building safety, noise, air quality, community benefits, and permitted locations. Staff indicated that a permanent ban could be incorporated into future regulations, though councilmembers expressed caution about endorsing an outright prohibition. The Nevada Legislature is expected to address data center regulations in its 2027 session. Data center opponents held a rally before the meeting, as reported by This Is Reno.
Reno City Council Extends Moratorium on AI Data Centers, Plans Permanent Rules
Las Vegas Review-Journal
No new data centers in Reno as council adopts moratorium, starts drafting new regulations
mynews4.com
Packed Reno City Council meeting centers on data center moratorium, possible extension
KOLO | 8 News Now
Reno City Council to hold meeting on data center regulations
KTVN
Data center opponents rally before special Reno City Council meeting
This Is Reno
Mississippi PSC Clears Path for Private Data Center Power Generation; Developer Pushes Forward Amid Local Opposition
The Mississippi Public Service Commission has ruled that companies generating electricity for their own private commercial use do not need to be regulated as a public utility, according to The Clarion-Ledger. The ruling directly benefits Jackson developer Gabriel Prado and his company PraCon Global (also known as Prado AI), which plans to build AI industrial campuses with on-site natural gas power generation.
Prado is moving forward with plans for a tech campus in the Jackson metro area that would include a data center and a 1-gigawatt natural gas power plant, as reported by WLBT. Key details:
- The PSC denied Prado AI's initial request for a declaratory opinion on a 350 MW gas plant, citing insufficient information, but the broader ruling on private generation cleared his path
- The project's specific location has not been confirmed, though a rezoning request by Saxum Investment Group for a 190-acre site along Forest Avenue is widely believed to be connected
- That rezoning request drew significant public protest at a recent Planning Board meeting and was subsequently pulled from the agenda
- Established utilities including Entergy Mississippi, Mississippi Power Company, and Delta Mississippi Gas Company had opposed Prado's initial PSC filing
Prado has stated the power plant would not connect to the existing grid and that 100% of power costs would be borne by his company, with no impact on ratepayers. He touts the project as a job creator and source of public school revenue, according to WAPT.
A proposed moratorium on data centers introduced by Ward Four Councilman Brian Grizzell was recently tabled by the Jackson city council. Prado has voiced strong opposition to any moratorium. Local residents have raised concerns about transparency and the absence of scientific data on community impacts, as reported by 16 WAPT News.
Mississippi ruling clears path for private AI power. Prado moves forward
The Clarion-Ledger
Jackson developer won’t reveal site of proposed tech hub; says it’s in the metro area
WLBT
Developer says Jackson data center could bring jobs, school revenue
WAPT
Prado AI moving forward with data center plans
16 WAPT News Jackson
Data centers bring jobs and environmental concerns
16 WAPT News Jackson
Texas: GOP Internal Divide Over Data Centers Grows as ERCOT Prepares New Interconnection Process
A growing rift within the Texas Republican Party over data center development is emerging, according to The Daily Yonder. Rural constituents and some lawmakers are voicing concerns about water, electricity, and local control, clashing with the pro-data center stances of Governor Greg Abbott and former President Donald Trump. Data centers have been proposed or are under construction across Republican-held rural districts, and a recent poll shows strong public opposition to AI data centers in communities.
The issue is set to be a major focus for the Texas Legislature in January. House Speaker Dustin Burrows and Lt. Governor Dan Patrick have directed their chambers to evaluate economic benefits against environmental and infrastructure impacts, including sales tax exemptions. Legislative proposals are expected to address county regulatory authority and water-efficient cooling guidelines. The data center industry has responded with increased lobbying, political donations, and the launch of the nonprofit Texas Connects. The San Marcos City Council recently denied rezoning for a large data center due to water concerns.
Separately, Texas Agriculture Commissioner Sid Miller has proposed a temporary statewide moratorium on data center development, according to Texas Standard. While the commissioner lacks direct authority to impose such a ban, local entities are acting independently:
- Harlingen approved a 120-day moratorium
- Hill County Judge approved a moratorium, and the county was subsequently sued for $100 million by developer RCM Hill
Candidates for the next Agriculture Commissioner are split — Republican nominee Nate Sheets views data centers as inevitable while Democratic candidate Clayton Tucker supports a moratorium.
Meanwhile, ERCOT is developing a new process to evaluate the feasibility of large energy users seeking grid connection, as reported by Houston Public Media. In Q1 2026, nearly 200 large entities requested grid connection seeking a combined 438 GW — more than five times the state's record electricity demand. The new process may require proof of land, financing, and ordered components, along with a financial commitment. ERCOT's board is scheduled to vote on the process today, with PUC review set for July. The Data Center Coalition has expressed concerns about timelines, criteria, and prioritization for existing projects already awaiting interconnection.
