Daily Digest — June 26, 2026
Pennsylvania House Passes Data Center Pause and Regulatory Bills
The Pennsylvania House of Representatives passed two major data center bills with large bipartisan majorities, according to pottsmerc.com. One bill, HB 2650, would codify Governor Josh Shapiro's voluntary "GRID standards," replacing the current sales tax exemption for data center equipment with a certification framework requiring developers to meet energy affordability, community engagement, job creation, and environmental protection criteria to receive state tax benefits. Critics, including the Better Path Coalition, have called the bill a "paper tiger" due to its voluntary nature.
The second bill, sponsored by state Rep. Paul Friel (D-26th Dist.), passed 201 to 1 and would empower municipalities to impose a six-month pause on data center development applications, giving local governments time to draft comprehensive land-use ordinances. As reported by 90.5 WESA, the state House also passed a separate measure to terminate all state data center subsidies entirely. The Senate has shown support for ending tax-credit programs, with Senate Democratic leader Jay Costa estimating savings of over half a billion dollars by 2030.
Both bills now move to the state Senate for consideration, with the legislative efforts tied to the broader state budget deadline.
2 data center bills pass PA House by large margins
pottsmerc.com
Harrisburg weighs whether to rein in data center construction with a carrot... or a stick
90.5 WESA
Pa. House passes data center ‘pause’ along with Shapiro’s plan for ‘responsible’ development
News From The States
Pa. House passes data center 'pause' along with Shapiro's plan for 'responsible' development
Pennsylvania Capital-Star
Pennsylvania House Passes Data Center Pause Bill
Franklin County Free Press
Utah Data Center Developer Presses Forward After Voter Backlash Ousts Elected Officials
O'Leary Digital confirmed it will continue advancing the Stratos data center project in Box Elder County, Utah, despite primary election results that removed several key political supporters from office, according to KSL.com. Utah Senate President J. Stuart Adams, Sen. Daniel McCay, Rep. Trevor Lee, and two Box Elder County commissioners all lost their re-election bids. The defeats are widely attributed to voter opposition to the proposed data center, which was projected to cover 40,000 acres and consume 9 gigawatts of power.
As reported by Native News Online, Commissioner Lee Perry directly attributed his loss to his "yes" vote on the project, calling it the issue that "cost me the election," per Alternet. The opposition group Box Elder Accountability Referendum (BEAR) has two active lawsuits aimed at halting the project. Preliminary winners in the county commission races expressed skepticism about the project's handling and the tax breaks granted through the Military Installation Development Authority (MIDA).
Separately, Kevin O'Leary retracted claims that progressive Utah groups critical of the project were "proxies for the Chinese government," stating he has no evidence to support the accusation, according to The Salt Lake Tribune. CleanTechnica reported that the project would have doubled Utah's current total electricity usage and increased state carbon emissions by an estimated 64%.
Data center developers move forward despite voter backlash aimed at Sen. Adams, others
KSL.com
Utah Lawmakers, County Commissioners Ousted Over Data Center Approval
Native News Online
Utah Commissioner Attributes Election Loss to Data Center Vote
Alternet
After accusing Utah critics of being ‘proxies for the Chinese government,’ Kevin O’Leary now says he has no evidence
The Salt Lake Tribune
Utah Voters Oust Politicians Who Supported Large Data Center Project
CleanTechnica
Texas Legislature and Governor Target Data Center Regulation Ahead of 2027 Session
The Texas Legislature is positioning data center regulation as a priority for the 2027 session, with Governor Abbott calling for legislation requiring data centers to pay for their own electric infrastructure, contribute to grid capacity, use water-efficient technologies, and report resource usage, according to The Fayette County Record. Lt. Governor Dan Patrick's agenda includes studying frameworks for managing increased electricity demand and safeguarding the sales tax exemption first established by House Bill 1223 in 2013, which has resulted in an estimated $1.4 billion in lost state revenue since 2014.
The Texas Republican Party's 2027 Legislative Priorities Committee advocates for granting cities and counties final authority over zoning for hyper-scale data centers and prohibiting taxpayer-funded incentives — a position at odds with the Governor's approach, which does not propose expanding local government authority.
Meanwhile, state agencies are struggling to collect usage data from the industry. According to LoneStar 92.3, the Public Utility Commission and Texas Water Development Board reported less than a third of surveyed companies returned questionnaires, with some mandatory reports at a 17% response rate. Non-compliance carries only a Class C misdemeanor with a maximum $500 fine. A University of Texas/Texas Tribune poll found a majority of Texans oppose new AI data centers in their local areas, as reported by the El Paso Times.
In North Texas, residents are pushing back against a proposed 80-acre data center facility, according to WFAA. Local representatives also reacted to a recent data center hearing, as covered by KCENNews.
Texas Legislature Considers Regulations for Data Centers and Water Use
The Fayette County Record
Texas Data Centers Avoid Disclosing Water Usage to State Regulators
LoneStar 92.3
Most Texans oppose new AI data centers in their area
El Paso Times
Residents push back on proposed North Texas data center
WFAA
Local representatives react to data center hearing | Texas News Now
KCENNews
Nashville Data Center Proposal Draws Environmental Scrutiny and Public Backlash
The Southern Environmental Law Center and the Center for Biological Diversity have formally urged Metro Nashville leaders and DC BLOX to assess whether a proposed 50-megawatt data center at Grassmere Park could violate the federal Endangered Species Act, according to The Tennessean. The groups cite concerns about stormwater runoff affecting the endangered Nashville crayfish in a nearby tributary and noise from cooling equipment disrupting breeding of endangered animals at the adjacent Nashville Zoo, including clouded leopards.
The project has generated substantial opposition, with over 500,000 people signing a petition against it. As reported by Nashville Scene, the Nashville Zoo confirmed it was not consulted by DC BLOX prior to the project's announcement, learning of the plans through a news article on May 20. The Mayor's Office met with DC BLOX in February and advised engagement with the zoo and district councilmember but declined to offer incentives for the estimated $700 million project in a subsequent March meeting.
Nashville residents gathered for a town hall meeting to voice opposition, as reported by WBIR, and the Metro Council is investigating options to block the development, according to WSMV 4. Metro Nashville is considering a temporary moratorium on new data centers and permanent zoning regulations.
Separately, Fisk University's $1 billion AI data center proposal in North Nashville is facing backlash from alumni and residents over environmental impacts, energy consumption, and transparency concerns, according to The Root.
Environmental groups warn data center could harm Nashville Zoo animals
The Tennessean
Nashville residents gather for town hall over data center next to zoo
WBIR Channel 10
How Metro Council could stop a proposed data center near the Nashville Zoo
WSMV 4 Nashville
Zoo, Mayor's Office Say DC BLOX Failed to Engage Before Backlash
Nashville Scene
Fisk University Faces Backlash Over $1 Billion Data Center Development Project
The Root
DeSoto County, Florida Moves Toward Data Center Moratorium
DeSoto County commissioners voted unanimously 4-0 to direct the county attorney to draft a one-year moratorium on new data center applications, following nearly three hours of public comment, according to WGCU. The moratorium would not affect projects already in the pipeline, including a large-scale hyperscale data center complex proposed by Texas-based DCIP Group.
As reported by Business Observer, DCIP Group is proposing a 1,315-acre sustainable data center campus estimated at $5 billion to $6 billion for its first phase. The company is seeking rezoning of approximately 1,200 acres as a planned unit development across six phases over seven years. DCIP states the campus would generate its own power on-site and use treated reclaimed wastewater, with groundwater as a last resort.
However, DCIP CEO Jon Brown was unable to provide specific figures for anticipated daily water use or the exact number of gas turbines during public meetings, citing the evolving design. WINK News reported that residents and environmental advocates are particularly concerned about water demands given current drought conditions and historically low river levels in the area.
