Daily Digest — June 6, 2026
Nashville Zoo Opposition Sparks Zoning Appeal and Moratorium Push
A proposed 69,000-square-foot data center by Atlanta-based DC BLOX at 648 Grassmere Park in South Nashville is facing intense opposition from the adjacent Nashville Zoo, local officials, and the broader community. According to NBC News, an online petition against the project has gathered over 180,000 signatures. Zoo President and CEO Rick Schwartz cited concerns that noise, light, and electrical hums from the facility — located just 50 yards from some animal exhibits — could disturb sensitive species like clouded leopards and impact breeding success.
Metropolitan Council member Courtney Johnston has filed a zoning appeal and intends to propose a data center moratorium for a council vote, as reported by NBC News. Nashville Mayor Freddie O'Connell has voiced concerns and stated that Metro Legal is reviewing the project, noting that the permit application appears unusual since a non-owner of the property filed it, according to WKRN News 2.
DC BLOX has stated it will work with local officials to minimize impacts, commit to waterless cooling designs, and cover power costs and necessary energy infrastructure. The company denied claims the facility would be an AI hub, according to The Tennessean. Metro Nashville's council is also considering a new bill that would restrict data center construction near schools, churches, and zoos, which has already passed its first reading, as reported by FOX Nashville.
Broader context from The Tennessean: Tennessee hosts 60 data centers across 10 markets, with Nashville accounting for 25. The Tennessee legislature recently passed HB1847, requiring data center developers to cover infrastructure and electricity costs to prevent expenses from being passed to residents. The Tennessee Valley Authority projects data center demand in the state to double by 2030.
Nashville Zoo Opposes Data Center, Prompting Zoning Appeal and Moratorium Proposal
NBC News
150,000 people sign petition opposing proposed data center next to Nashville Zoo
FOX NASHVILLE
Petition has over 160K signatures opposing data center near Nashville Zoo
WKRN News 2
Tennessee is home to dozens of data centers, why a new one faces pushback
The Tennessean
Data Center Discussion Continues In Tennessee And Kentucky
WKDZ
Illinois Governor Pauses Data Center Tax Incentives, Calls for Regulatory Framework
Illinois Governor JB Pritzker has directed the Illinois Department of Commerce and Economic Opportunity to halt processing of new agreements under the state's Data Center Investment Program, effective July 1. According to NewsChannel20, the executive action follows the General Assembly's failure to pass data center regulation legislation during its spring session.
Existing incentive agreements will remain valid, but no new agreements will be approved while officials develop a comprehensive regulatory framework. The governor has outlined several principles for lawmakers to consider during the fall veto session, as reported by ABC7 Chicago:
- Requiring data centers to bear a greater share of electric and water infrastructure costs
- Mandating regular reporting of energy and water usage
- Banning nondisclosure agreements between data centers and local governments
- Requiring public notice for permit applications and community benefits agreements
- Mandating facilities support new clean energy development
- Implementing measures to reduce power consumption during grid strain
According to KVUE, the administration noted that some data center facilities rival the water usage of a medium-sized town, and the reforms aim to prevent rising utility costs from disproportionately affecting residents.
Illinois governor halts new data center agreements to push for reforms
Eyewitness News WTVO WQRF (MyStateline)
Illinois to halt tax breaks for data centers
KVUE
Gov. Pritzker orders pause on new data center deals
NewsChannel20
Pritzker pauses new data center tax incentive agreements, calls for broader regulatory framework
Muddy River News
Illinois Governor JB Pritzker moves to pause new agreements for data center tax incentives
ABC7 Chicago
Hill County, Texas Rescinds Data Center Moratorium After $100M Lawsuit
Hill County commissioners unanimously voted to rescind their data center moratorium just two weeks after enacting it, following a $100 million lawsuit filed by developer RCM Hill. According to The Texas Tribune, the lawsuit claimed the moratorium illegally halted a multi-million dollar project the company had been developing for over a year.
County Judge Shane Brassell stated the moratorium still served its purpose by deterring "less desirable" projects and providing time to formulate new requirements, as reported by The Texas Tribune. Commissioners simultaneously approved a new data center development review checklist requiring developers to provide:
- Projections for water use and power demand
- Traffic impact and bridge capacity analyses
- Noise and air emissions assessments
- Public announcement of projects through signage and media alerts
Julie Waters of Texans United Against Data Centers told KCEN News that the new checklist and proclamation may offer stronger protections than the moratorium, as they utilize existing statutes to establish clear guidelines while avoiding legal disputes. She encouraged other Texas counties to adopt similar frameworks.
Data center critic argues new Hill County policies may be better for residents than moratorium
KCENNews
Hill County rescinds data center moratorium after lawsuit
KCENNews
Hill County Rescinds its Data Center Moratorium Following Lawsuit
FOX West Texas
Texas county rescinds its data center moratorium after $100 million lawsuit from developer
The Texas Tribune
Advocate says new Hill County data center policies may be better than moratorium
KCENNews
New York Legislature Passes One-Year Data Center Moratorium
The New York State Legislature passed a bill on June 4 imposing a one-year moratorium on new large data centers requiring at least 20 megawatts of peak demand. According to The Verge, the legislation — titled the "Responsible Data Center Development Act" — now awaits Governor Kathy Hochul's signature or veto, with a deadline in December.
The bill directs the state Department of Environmental Conservation to produce a comprehensive impact report on data center electricity, water, and land usage, as well as pollution, within 18 months. It also requires companies proposing large data centers to hold and fund a public hearing three months before seeking project approval, as reported by The Verge. According to Adirondack Explorer, the act also proposes amendments requiring data centers of 5 megawatts or larger to meet renewable energy benchmarks, targeting at least 90% renewable electricity by 2040.
Governor Hochul has previously expressed skepticism about statewide land use mandates, preferring local municipal decisions, according to Sherwood News, though she has indicated she is reviewing the bill "intensely." The New York Independent System Operator is currently reviewing 24 data center proposals totaling over 9,000 megawatts. Industry group Digital Power Network expressed opposition citing regulatory destabilization concerns, while environmental coalition NY Renews urged the governor to sign the bill, as reported by Adirondack Explorer.
Utah's Stratos Data Center Faces Second Lawsuit, Project Scaled Back 50%
The Stratos data center project in Box Elder County, Utah, is facing a second lawsuit. According to KSL.com, the Alliance for a Better Utah and five unnamed Box Elder County residents filed suit in Salt Lake County, alleging that approvals by the Military Installation Development Authority (MIDA) and Box Elder County commissioners are unconstitutional. The lawsuit also names Utah Senate President Stuart Adams and Sen. Jerry Stevenson, both MIDA board members, and demands Adams return $135,000 in political donations from project supporters received after the MIDA meeting.
This suit runs parallel to a separate legal challenge filed by the Box Elder Accountability Referendum (BEAR) in 1st District Court contesting the rejection of their attempt to force a public vote on the project, as reported by KSL.com. Attorney for the Alliance for a Better Utah told FOX 13 News Utah that MIDA would gain "permanent, irrevocable control" over public health, safety, taxation, and land use across tens of thousands of acres.
Meanwhile, developer Kevin O'Leary has agreed to reduce the project's planned acreage from 40,000 to approximately 20,000, with 10,000 remaining undeveloped. According to Ars Technica, O'Leary acknowledged missteps in transparency, stating the project team failed to engage the public early enough. Utah Senate President Adams requested a 75% reduction; O'Leary agreed to 50%.
Separately, Deseret News reported that a Democratic consulting firm, Fulcrum Campaigns, is funding a PAC called "Republicans Against the Stratos Project Data Center" targeting Box Elder County commissioners who approved the special zoning agreement. The campaign has spent nearly $11,000 on ads and mailers ahead of the June GOP primary.
Second lawsuit takes aim at Box Elder County data center project
KSL.com
Democratic firm behind ‘Republican’ campaign to oust Box Elder commissioners over data center
Deseret News
Lawsuit claims MIDA and Box Elder County violated rights in data center plan
FOX 13 News Utah
Utah Data Center Project Reduced by Half After Public Opposition
Ars Technica
New lawsuit filed against MIDA, Box Elder County Commission over Stratos Project data center
ABC4 Utah
