Daily Digest — June 12, 2026
Friday, June 12, 2026

Daily Digest — June 12, 2026

Texas Governor Abbott Pushes Comprehensive Data Center Regulations

Texas Governor Greg Abbott has outlined a sweeping set of regulatory priorities for data centers, directing the Public Utility Commission of Texas (PUC) and ERCOT to protect residential ratepayers from costs associated with data center expansion, according to FOX 4 Dallas-Fort Worth. The governor's proposals include:

- Requiring new data centers to include on-site power generation

- Mandating that data centers cover their own grid interconnection and infrastructure costs

- Enforcing closed-loop water cooling systems

- Requiring reporting of electricity and water usage

- Rolling back existing tax exemptions and incentives

As reported by KXAN, the policy shift follows dozens of counties passing resolutions urging a special legislative session, and a Texas Tribune analysis found that nearly half of proposed data centers are planned for unincorporated areas with limited regulatory authority. ABC13 Houston reported that communities in Brazoria County are experiencing ongoing noise complaints from existing facilities, and cities like Alvin have passed resolutions opposing future construction, though these lack legal enforcement without further legislative action. An ERCOT warning in April projected that Texas power demand could nearly quadruple by 2032, largely driven by data centers.


El Paso Council Upholds $550 Million Meta Tax Incentive Deal

The El Paso City Council voted 5-3 to maintain a tax incentive agreement with Meta for a large data center campus, despite nearly 200 public comments largely favoring cancellation, according to FOX54 News Huntsville and WTHR. The deal, originally approved in 2023, provides Meta with an estimated $550 million in tax incentives over 10 years in exchange for maintaining 50 jobs and an $800 million investment.

Mayor Reynard Johnson stated that legal experts advised the council that voiding the binding agreement would be difficult, and that cancellation could pose financial risks to taxpayers. The facility is projected to become one of the largest data center campuses in Texas.


Nashville Advances Data Center Moratorium Amid Zoo-Adjacent Project Opposition

Nashville's Metro Council has initiated steps toward a temporary moratorium on data center development following intense public opposition to a DC BLOX project adjacent to the Nashville Zoo, as reported by CBS Evening News. The proposed moratorium would halt new permit approvals until November or until updated zoning laws are enacted. An online petition against the zoo-adjacent project has garnered nearly 400,000 signatures, with country music star Brad Paisley among those urging public participation.

Permit documents obtained by local media and reported by The Nerd Stash reveal that DC BLOX is seeking approval for both an initial 69,000-square-foot, 10 MW facility and a separate three-story, 202,000-square-foot, 40 MW building on the same property. The Nashville Zoo has filed a zoning appeal against existing permits, citing potential risks to animals including endangered clouded leopards, according to NewsChannel 5.

According to WPLN News, nine Tennessee cities and counties have enacted data center construction bans since last fall, with at least three more — including Nashville and Knoxville — considering proposals. Nashville's current zoning code lacks a definition for data centers. Separately, FOX Nashville reported that Fisk University's proposed Quantum Leap Innovation Center in North Nashville, which includes a 70,000-square-foot technology center, is drawing opposition from State Representative Justin Jones and community leaders who are calling for a moratorium citing environmental concerns and lack of transparency.


Box Elder County, Utah Enacts Data Center Moratorium — Stratos Project Exempt

The Box Elder County Commission unanimously approved a 180-day moratorium on new data centers and data center power plants on June 10, according to Cache Valley Daily and The Salt Lake Tribune. County Attorney Stephen Hadfield clarified that the moratorium applies only to areas where the county retains land-use authority and is not retroactive, meaning it does not affect the proposed Stratos Project in Hansel Valley.

The Stratos Project, backed by investor Kevin O'Leary, is located within an area governed by Utah's Military Installation Development Authority (MIDA), which assumed land-use authority following a May vote by county commissioners to transfer control for 50 years. The project has already been reduced from 20,000 to 10,000 acres following public outcry, as reported by The Salt Lake Tribune.

As reported by KSL News Utah, the commission meeting drew a standing-room-only crowd. Residents raised concerns about water usage, environmental impact, health effects, and government transparency. The ad hoc Box Elder Accountability Referendum (B.E.A.R.) group has filed two lawsuits: one seeking to place the data center project on the November ballot, and another alleging officials violated constitutional rights by approving the Stratos Project Area Plan while denying residents a vote, per Cache Valley Daily. The Salt Lake Tribune also reported on local landowners near the Great Salt Lake who are actively opposing the development over environmental and cultural concerns.


Arkansas: Pulaski County Delays Moratorium Vote; Google Faces Protests in Little Rock

The Pulaski County Quorum Court has postponed a final vote on a proposed data center moratorium until the fourth Tuesday in July, according to KATV. An independent expert indicated the ordinance, while well-intended, could lead to unintended consequences for the county's economic development.

Meanwhile, Little Rock residents protested a private meeting held by Google at First United Methodist Church regarding its proposed data center near the Port of Little Rock, as reported by KATV and THV11. The facility is expected to draw approximately 100 MW of power. Google stated the private meeting was intended to hear from the immediate community and committed to additional public conversations. The City of Little Rock did not attend the meeting but has recently passed new data center regulations proposed by Mayor Frank Scott Jr.

A separate lawsuit filed in Washington County Circuit Court over a nondisclosure agreement for a drone manufacturer has drawn attention to broader transparency concerns surrounding economic development deals in the state, including data center projects, according to Arkansas Times and Magnolia Reporter. Fayetteville officials are also considering conditional use permits and reporting requirements for future data centers.


DC BLOX Indianapolis Project Gets Hearing Examiner Approval; National Poll Shows Broad Opposition

DC BLOX's proposed $2 billion data center campus on Indianapolis's east side received a recommendation for approval from Metropolitan Development Commission hearing examiner Judy Weerts Hall, according to Mirror Indy. The project, planned for a brownfield site at the former Ford plant near the Irvington neighborhood, would comprise three buildings totaling approximately 420,000 square feet and consume up to 78 MW of electricity with 56 backup generators.

The recommendation drew vocal opposition from residents at the June 11 hearing, as reported by WTHR and the Indianapolis Business Journal. Concerns cited included environmental impacts, proximity to an elementary school, and property value declines. Residents urged denial until the city finalizes data center regulations, referencing a resolution unanimously approved last month by the Indianapolis City-County Council calling for a moratorium. The project now proceeds to the full MDC for a final vote, expected next month. Because DC BLOX is seeking a use variance, the MDC — not the City-County Council — has final approval authority.

Separately, a Reuters/Ipsos poll reported by BOE Report found that 64% of Americans disapprove of the current pace of data center construction, 57% would oppose a data center in their community, and 77% are concerned about electricity price increases. Fourteen states are reportedly considering or have considered moratoriums on new data center projects.