Daily Digest — June 11, 2026
Texas Governor Abbott Directs Regulators to Shift Data Center Costs Away from Ratepayers
Texas Governor Greg Abbott issued a directive on June 10 to the Public Utilities Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) calling for sweeping new regulations on data centers, according to FOX 7 Austin. The letter instructs the agencies to ensure data center infrastructure costs are not passed on to residential ratepayers and to submit a joint memorandum by July 17 detailing actions taken to mitigate risks.
The Governor's proposals for the 2027 legislative session include:
- Mandating new data centers integrate additional power generation into the state grid
- Requiring data centers to pay for their own infrastructure and grid connections
- Mandating closed-loop water systems
- Requiring annual electricity and water usage reporting
- Repealing sales tax exemptions and other financial incentives
- Implementing noise reduction and community impact measures
As reported by the Austin American-Statesman, the directive represents Abbott's first move to limit data center growth after previously championing Texas as an "epicenter of AI development" — including appearing alongside Google CEO Sundar Pichai during a $40 billion investment announcement. ERCOT data indicates over 480 large data centers have requested grid connections by 2032, up from roughly a dozen currently considered major electricity users.
The PUC must also act by the end of July to reduce residential transmission costs, according to Houston Public Media. State Representative Helen Kerwin expressed support for the initiative, while the Data Center Coalition said its member companies already employ many of the practices Abbott outlined. The directive comes amid growing bipartisan pressure, with Agriculture Commissioner Sid Miller advocating for a temporary moratorium, and Lt. Gov. Dan Patrick and House Speaker Dustin Burrows initiating studies into the industry's resource demands, as reported by the American-Statesman.
At the local level, Hill County officials recently lifted a data center moratorium after facing a lawsuit from developers, and Angelina County commissioners advised residents to contact state lawmakers given limited county authority over moratoriums, according to FOX 7 Austin.
Abbott calls for new regulations on data centers
FOX 7 Austin
Greg Abbott tells PUC, ERCOT not to pass new data center costs to customers
Austin American-Statesman
Gov. Greg Abbott calls for Texas energy regulators to rein in data centers
Houston Public Media
Abbott: Data centers must pay own infrastructure costs
KTSM 9 NEWS
Abbott Issues Directive to ERCOT, Public Utility Commission to Control Rising Data Center Costs
The Texan
Nashville Metro Council Advances Data Center Moratorium Amid Zoo Controversy
Nashville's Metro Council voted 26-1 to advance an emergency bill implementing a temporary moratorium on new data center developments, according to WSMV 4 Nashville. The moratorium, which passed its first of three required readings, would halt new data center construction until at least November 1 to allow studies on environmental, water, and noise impacts, as reported by the Nashville Post.
The central flashpoint is a proposed DC BLOX data center adjacent to the Nashville Zoo. Updated site renderings show the project has expanded to two three-story buildings totaling 50 megawatts (one 10MW and one 40MW), according to WKRN News 2. The Nashville Zoo has filed zoning appeals to overturn already-approved permits, with Zoo President Rick Schwartz calling the enlarged complex a disaster for conservation work involving endangered clouded leopards.
A Change.org petition against the project has garnered over 380,000 signatures, with public support from country music artists Brad Paisley and Sheryl Crow, according to the Detroit Free Press. DC BLOX has responded that the facility is designed as a communications center, not an AI factory, and plans to implement waterless cooling, manage noise levels, and shield light fixtures.
Council member Courtney Johnston noted that Nashville's current zoning code does not specifically define data centers, and a public hearing before the Planning Commission is scheduled for June 11 to consider a text amendment addressing that gap, according to WKRN. Discussion during the council session also highlighted developers' strategies of building multiple smaller facilities to circumvent stricter regulations for larger projects, as reported by WSMV.
Debate over data centers in Nashville
WSMV 4 Nashville
‘Three stories tall’: Site plans for proposed data center near Nashville Zoo bigger than originally thought
WKRN News 2
Brad Paisley, Sheryl Crow join fight against data center near Nashville Zoo
Detroit Free Press
Metro Council advances data center moratorium, further approvals needed
Nashville Post
Data Center Debates Spread Across Middle Tennessee
Beyond Nashville proper, data center controversies are expanding across the Middle Tennessee region, according to WKRN News 2. Coffee County has enacted a one-year moratorium on data center construction, and Gallatin leaders are considering a similar pause.
A proposed data center at Fisk University in Nashville has drawn opposition from students, alumni, and community members. State Representative Justin Jones (D-Nashville) led a press conference highlighting environmental and public health concerns, including high electricity consumption, reliance on fossil fuels, and pollution from diesel-fueled backup generators. A petition against the Fisk project has collected over 6,000 signatures. Members of the Nashville NAACP also raised concerns about disproportionate impacts on communities of color.
Nashville's moratorium bill will require two additional readings before taking effect.
Box Elder County, Utah Approves 180-Day Data Center Moratorium
The Box Elder County Commission unanimously approved a six-month moratorium on new data centers and associated power plants in unincorporated areas, according to the Herald Journal. The 180-day pause suspends new zone changes, land-use applications, building permits, and business licenses for data centers, though applications submitted prior to adoption are unaffected.
The moratorium does not affect the Stratos Project data center, a focal point of local controversy. The county transferred land-use authority for the Stratos project area to the Military Installation Development Authority (MIDA) in May, as reported by KSL TV 5. Residents at the meeting voiced frustration that the moratorium would not apply to Stratos, with some calling it a reactive measure, according to ABC4 Utah.
Planning Director Scott Lyons indicated that future regulatory options could include a dedicated zoning classification or overlay zone for data centers, along with review standards addressing community and environmental impacts. Commissioner Lee Perry said the moratorium provides time to establish parameters for data center development even on unzoned county property.
Moratorium approved by commissioners for future data centers in Box Elder County
The Herald Journal
Box Elder residents say data center moratorium is insufficient, oppose Stratos Project
ABC4 Utah
Video: Box Elder County Commissioners approve data-center moratorium that does not impact Stratos project
KSL TV 5
Box Elder County Commission to vote on moratorium on new data centers
KSL TV 5
NPR Investigation Examines Claims of Chinese Influence in Data Center Opposition
Tech investors and some government officials are promoting a theory that China is funding local opposition to U.S. data center projects, though independent researchers have found limited evidence of a coordinated campaign, according to NPR.
Canadian investor Kevin O'Leary, who holds a stake in the Stratos data center in Box Elder County, Utah, accused two Utah-based groups — Alliance for a Better Utah and Elevate Strategies — of operating on behalf of the Chinese government after local opposition to the project emerged. Both organizations deny the allegations. Alliance for a Better Utah has filed a lawsuit on behalf of Box Elder County residents citing inadequate consultation regarding the project.
While OpenAI reported banning a cluster of likely Chinese accounts that generated anti-data center content, the company noted the campaign's impact was limited. Darren Linvill of Clemson University's Media Forensics Hub found little evidence of a coordinated, effective Chinese campaign, suggesting local opposition is largely organic. Interior Secretary Doug Burgum has expressed concern about "foreign-sourced dark money," and House Energy and Commerce Committee Chairman Brett Guthrie has requested an FBI briefing on potential Chinese influence. O'Leary subsequently agreed to scale back the Stratos project to a quarter of its original size following public and political pressure.
