Daily Digest — June 24, 2026
Wednesday, June 24, 2026

Daily Digest — June 24, 2026

Texas Poll Shows 56% of Residents Oppose Local Data Center Construction

A University of Texas/Texas Politics Project poll of 1,200 registered voters found that 56% of Texans oppose data center construction in their communities, with opposition rising to 62% in rural areas, according to The Texas Tribune. Only 29% of respondents expressed support. James Henson, co-director of the poll, noted the unusual speed and breadth of public pushback against what would typically be considered economic development in the state, as reported by Texas Scorecard.

In response, Governor Greg Abbott has issued directives to the Public Utility Commission and ERCOT, instructing regulators to pursue policies ensuring data centers bear their own infrastructure costs, according to Texas Scorecard. The directives also include proposals requiring data centers to:

- Adopt water-efficient cooling technologies

- Submit annual reports on electricity and water usage

- Provide their own power generation

Abbott has also called for the elimination of certain tax incentives for data center projects, as reported by KEYE.


Hays County Suspends Data Center Approvals Through End of 2026, Creates Water Review Board

Hays County commissioners unanimously approved a resolution suspending discretionary approvals for data centers and other water-intensive developments until December 31, 2026, according to the San Antonio Express-News. The resolution establishes a water protection review board to evaluate proposed developments based on water availability studies, drought contingency plans, and conservation measures, as reported by KUT.

The resolution also introduces requirements for developers including:

- Transparency reports and projected water-use estimates

- Independent environmental surveys

- A checklist for water-intensive development proposals

County Judge Ruben Becerra clarified that the measure is not a blanket prohibition but a temporary review period, according to KUT. The county's legal counsel expressed confidence the resolution's language limits exposure to lawsuits similar to the $100 million suit filed against Hill County by RCM Hill, LLC, which led Hill County to rescind its moratorium.

Commissioners also passed a separate resolution urging the Texas Legislature to give counties greater control over data center growth, joining Caldwell, Henderson, Hill, Hood, Somervell, and Van Zandt counties in that request, as reported by FOX 7 Austin and the San Antonio Express-News. The county's action follows San Marcos, a city within Hays County, which earlier prohibited data centers within city limits.


Rural Texas Counties Face Legal and Regulatory Challenges Over Data Center Development

Rural counties across Texas are encountering legal obstacles when attempting to regulate data center construction, according to The Elgin Courier. Hill County rescinded a one-year moratorium after RCM Hill filed a $100 million lawsuit, arguing the county lacked legal authority for the ban after the company had invested over $80 million to secure more than 800 acres near Hillsboro.

Residents in Hood and Somervell counties are raising concerns about at least nine proposed data center projects at county commissioner meetings, citing potential increases in electricity bills, strain on water resources, and negative impacts on tourism, as reported by The Elgin Courier. A ranch in a Texas county is also opposing a proposed project over potential environmental impacts on a nearby lake, according to WFAA.

Texas lawmakers heard testimony that only 17% of data centers responded to an annual survey on projected water use, according to KEYE. Legislators plan to back a bill in the next session to compel data centers to disclose water consumption and sources. Caldwell County Judge Hoppy Haden testified that developers have acquired approximately 6,000 acres for four campuses comprising 18 to 20 data centers in his county.


Pennsylvania Residents Rally for Three-Year Statewide Data Center Moratorium

Nearly 200 people gathered at the Pennsylvania State Capitol in Harrisburg to advocate for a proposed three-year moratorium on hyperscale data center development, according to PennLive. The moratorium is outlined in Senate Bill 1359, introduced by Sen. Katie Muth (D-Chester County), which would temporarily halt permitting and construction of data centers and related power infrastructure statewide, as reported by CBS 21 News.

The rally drew bipartisan support, with Republican Sen. Rosemary Brown (Monroe County) and Republican Rep. Jamie Walsh (Luzerne County) also voicing support, according to the Altoona Mirror. Walsh announced an investigation into large-scale property purchases linked to data center proposals in Salem Township. The event, organized by Food & Water Watch, highlighted controversies in multiple townships including an alleged Sunshine Act violation lawsuit in Clinton Township (Wayne County).

Republican gubernatorial candidate Stacy Garrity has publicly supported a moratorium, while the Shapiro campaign has proposed environmental, electric grid, and noise level standards that developers would need to meet to qualify for state tax breaks, as reported by WGAL.


Pennsylvania Bill Would Require Data Centers to Procure In-State Clean Energy

Pennsylvania lawmakers are evaluating House Bill 1834, which would mandate that large data centers source increasing proportions of their electricity from new, in-state clean firm energy resources, according to LancasterOnline. The bill includes:

- Anti-cost-shifting provisions to protect consumers from higher electricity prices

- Required contributions to the federal Low Income Home Energy Assistance Program

- Establishment of a state energy independence account

Proponents argue the legislation would bolster grid reliability during peak demand and support the development of lower-emission energy technologies.


Imperial County Reverses Data Center Approval, Enacts 45-Day Moratorium; Developer Sues

Imperial County supervisors reversed their earlier approval of a land-use plan for the proposed Imperial Data Center, a nearly one-million-square-foot hyperscale facility designed for AI operations, and declared a 45-day moratorium on data center developments, according to the Washington Post and CalMatters. The board also formed a public commission to advise on zoning policy.

Developer Sebastian Rucci of Imperial Valley Computer Manufacturing, LLC announced plans to file a lawsuit seeking a temporary restraining order against the moratorium, arguing the county failed to demonstrate a true emergency, as reported by CalMatters. Separately, the City of Imperial filed its own lawsuit challenging the project's environmental review under CEQA, citing concerns about air quality, water use, and energy demand, according to the Hanford Sentinel.

The project's water sourcing has become a flashpoint. Court filings indicate IVCM was unable to secure recycled water agreements and is now suing the Imperial Irrigation District for 260 million gallons of Colorado River water annually, contradicting earlier assurances the facility would rely solely on recycled wastewater, according to wowo.com. Local voters are also gathering signatures for a referendum to ban data centers in the county.

State Sen. Steve Padilla has introduced a series of bills that have passed the state Senate and await Assembly votes. The bills would:

- Require large data centers to pay energy costs upfront

- Mandate zero-carbon energy production and recycled water use

- Prohibit CEQA exemptions for data center projects

- Require investment in local workforce development