Daily Digest — June 7, 2026
Hood County, Texas, Faces Developer Lawsuits After Tightening Data Center Regulations
Hood County, Texas, a rural community southwest of Fort Worth, is contending with eight proposed data center projects spanning over 7,600 acres, according to Salon.com. Two attempts by county commissioners to pass a moratorium on data center construction failed after state Senator Paul Bettencourt warned that Texas counties lack constitutional authority to issue building moratoriums and threatened legal action from the Attorney General's office.
Commissioners amended their development regulations in March, adding stricter requirements for large industrial projects including:
- Detailed disclosures on water sourcing and energy use
- Environmental impact documentation
- Revocation of Pacifico Energy's previously approved "Fort Spunky" concept plan
- Tabling of two additional projects ("Project Red" and "Project Yellow")
Multiple developers, including Pacifico Energy, have filed lawsuits against the county alleging unlawful denial and delay of projects. Nearby Hill County successfully approved a one-year moratorium but faces a $100 million lawsuit from a developer. Changes to county regulatory authority are not expected until the Texas legislature's next session in 2027.
Cheyenne Advances Data Center Annexation Proposals After Rejecting Moratorium
The Cheyenne City Council voted 9-1 against a proposed 12-month moratorium on new data center construction and is now proceeding with several annexation and zoning proposals, as reported by WyomingNews.com. Microsoft is seeking annexation and "business park" zoning for a 3,200-acre "Highland" parcel intended for data centers projected 10-20 years out, along with rezoning for its already annexed "Read" property on a nearer timeline.
A public hearing for the Highland annexation is scheduled for June 8. Separately, developers ViaWest and SkyBox are pursuing annexation of the 1,200-acre Cox Ranch for data centers, with that proposal postponed until September 14 and public meetings planned for July. The City Planning Commission was divided on how to address long-term concerns around water use, energy demand, and traffic given the distant development timelines.
Cheyenne Hosts Public Panel on Data Center Community Impacts
The City of Cheyenne convened a public panel attended by approximately 120 residents to address concerns about data center growth in Laramie County, according to coverage from both WyomingNews.com and Cap City News. Panelists included Mayor Patrick Collins, representatives from the Board of Public Utilities (BOPU), Black Hills Energy, Cheyenne LEADS, and Microsoft's senior director for infrastructure government affairs.
Key points from the panel:
- 10 data centers are currently operational in Laramie County, with five under construction and nine in planning
- Data centers currently use about 2% of the city's water, potentially increasing to 6% before closed-loop cooling systems become standard
- Black Hills Energy stated data centers do not increase residential electric rates due to specific tariffs
- The city maintains a "do no harm" philosophy requiring data centers to pay 100% of impact costs
- BOPU has instituted new requirements for closed-loop water systems or attenuation ponds
Mayor Collins emphasized that residents and businesses will not subsidize data center operations. Panelists also addressed noise compliance, property value concerns, and job creation in skilled trades.
Illinois Governor Pauses Data Center Tax Incentives After Legislative Efforts Stall
Illinois Governor JB Pritzker issued an executive order pausing tax incentives for new data center projects effective July 1, as reported by the Chicago Tribune, Shaw Local, and Mint. The action follows the failure of the spring legislative session to pass the POWER Act, which would have imposed transparency and utility consumption limits on data centers, as well as a bill extending a previous two-year tax incentive moratorium.
According to the Illinois Department of Commerce and Economic Opportunity, the state provided nearly $1 billion in data center tax incentives between 2020 and 2024, attracting over $15 billion in investments. Existing agreements made before July 1 will remain in effect, and companies can still pursue local tax relief.
New legislative measures have been introduced:
- Senate Bill 1050 from Senator Darby Hills would empower counties and municipalities with greater control, including a three-mile residential buffer, local authority over water and noise, and a requested one-year statewide moratorium
- House Bill 5755 from Representative Jed Davis would require data center proposals to go to local referendums
Climate Jobs Illinois, a coalition of 15 unions, urged reversal of the order, arguing it would divert investment and union jobs to neighboring states. Both new bills and the previously failed POWER Act are expected to be revisited during the fall veto session. Industry researcher Data Center Watch reports approximately $64 billion in projects nationwide have faced delays or cancellations due to public pushback, according to Mint.
Local developments across Illinois include a Joliet lawsuit challenging rezoning for a 795-acre data center, Naperville's rejection of a proposed data center, and Sangamon County's approval of a 280-acre data center zoning change despite public opposition. Bourbonnais officials are evaluating special use permits to gain more control over potential proposals.
Fort Worth Residents Rally Against $10 Billion Data Center; City Considers Moratorium
Residents in Fort Worth, Texas, rallied at Weston Gardens against a proposed $10 billion AI data center development by Black Mountain, a local energy consortium, according to the Fort Worth Star-Telegram. Community members cited concerns about noise, light and air pollution, and vibrations affecting historic structures.
The protest followed a report from the Fort Worth city manager's office to the city council on data center expansion. Black Mountain has requested the council consider rezoning an additional 80 acres. City staff have proposed restrictions including:
- A ban on cryptocurrency mining as a primary use
- Noise limitations
- Wastewater regulations
- A potential temporary moratorium on new projects
However, a moratorium cannot be enacted until late October due to new state guidelines extending the implementation process. Assistant City Manager Jessica McEachern cited Texas's favorable business environment and faster permitting as drivers of the rapid data center influx.