Daily Digest — June 27, 2026
Nashville Planning Commission Advances Data Center Moratorium and Zoning Rules
The Metro Nashville Planning Commission has recommended two data center bills to the Metro Council, with public hearings scheduled for July 7, according to the Chattanooga Times Free Press. One bill, sponsored by Council Planning and Zoning Committee Chair Rollin Horton, would establish comprehensive zoning rules for data centers — currently absent from Metro code — prohibiting the largest facilities in Davidson County and restricting placement near schools, hospitals, and other sensitive locations. A second bill, introduced by Councilmember Courtney Johnston, proposes a temporary moratorium on new data center permits, lasting up to 90 days or until permanent regulations are approved.
The legislative push is largely driven by opposition to a proposed DC Blox facility adjacent to the Nashville Zoo. As reported by WKRN, the proposed regulations would:
- Prohibit data center campuses exceeding 500,000 square feet or 100 megawatts of electrical capacity
- Restrict data center locations near residential areas, schools, and zoos
- Implement a half-mile buffer from "Choose How You Move" transit corridors
- Require a zoning exception and public hearing for permits
Davidson County currently hosts 12 data centers, with nine operational, one under construction, and two planned. Some existing facilities could become legally nonconforming under the new rules but would continue operations.
DC Blox representative Doug Sloan argued at the Planning Commission meeting that the company's proposed project is "vested" because it had already applied for a building permit, contending that new regulations should not apply. According to WZTV, Sloan stated the company would move forward with its project, asserting all necessary permits are in hand and criticizing Metro leaders for not engaging with DC Blox before drafting the legislation.
An online petition against the zoo-adjacent project has garnered over 525,000 signatures, per Local 3 News, and the zoo itself has initiated a zoning appeal. The debate has also entered state politics, with Tennessee House District 55 candidates offering differing views on state versus local authority over data center regulation.
Council pushes back against proposed data center near Nashville Zoo
Local 3 News
Nashville Planning Commission advances data center bills ahead of council public hearing
Chattanooga Times Free Press
Metro Planning Commission backs data center moratorium, DC Blox to proceed with permits
WZTV
Nashville advances new data center rules as debate grows over local, state involvement
WKRN News 2
Environmental Groups Flag Endangered Species Concerns at Nashville Zoo Data Center Site
The Southern Environmental Law Center and Center for Biological Diversity have alerted DC Blox to potential legal and environmental concerns related to its proposed two-facility, 50-megawatt data center campus near the Nashville Zoo, according to WSMV. The groups cite risks to the federally endangered Nashville crayfish, a species unique to Mill Creek and its tributaries in Davidson and Williamson Counties, which could be affected by construction-related erosion, sediment control failures, and potential water contamination or temperature changes from a water-cooling system.
The environmental organizations also highlight potential noise pollution impacts on vulnerable species housed at the Nashville Zoo, including the alligator snapping turtle and eastern hellbender. They have urged DC Blox to complete all required Endangered Species Act reviews and obtain necessary permits before commencing project activities.
Inver Grove Heights Enacts Year-Long Data Center Moratorium Despite $150 Million Lawsuit Threat
The Inver Grove Heights City Council voted 3-2 to enact a one-year moratorium on data center development, effectively halting a proposed 50,000-square-foot project on Carmen Avenue, according to 5 Eyewitness News. The vote came early Friday morning after a third and final reading.
As reported by CBS News, attorney Jacob W. Steen from Larkin Hoffman, representing developer QLevr, LLC, had sent a letter to the city in May threatening a lawsuit claiming potential damages exceeding $150 million. City legal counsel Jason Kuboushek anticipates legal action now that the moratorium has been approved. Local residents had submitted an environmental petition with approximately 700 signatures in support of the pause.
Inver Grove Heights joins Minneapolis in implementing data center moratoriums in Minnesota, while Elk River's Planning Commission has recommended a similar measure. Separately, a coalition led by Cathy Johnson, chair of the Coalition of Responsible Data Center Development, gathered at the Minnesota State Capitol urging Governor Tim Walz to implement a two-year statewide moratorium, per CBS News.
Inver Grove Heights City Council approves data center moratorium
CBS News
Inver Grove Heights officials OK pause on data centers as pushback persists
WCCO - CBS Minnesota
Inver Grove Heights City Council OKs pause on data center development amid litigation threat
CBS News
Inver Grove Heights council pauses data centers amid lawsuit threat
5 EYEWITNESS NEWS
Data center moratorium passed by Inver Grove Heights City Council
FOX 9 Minneapolis-St. Paul
Texas Tribune Analysis Counts 248 Planned Data Centers as Governor Shifts Toward Regulation
At least 248 data center projects are planned across Texas, according to an analysis by the Texas Tribune. The growth is primarily fueled by AI infrastructure demand, with projects planned across North, Central, and West Texas. Companies like Fermi America and Crusoe are constructing facilities at scale — including a 1,200-megawatt project in Abilene and an 11,000-megawatt campus outside Amarillo, as reported by KETK.
Governor Greg Abbott has designated data center industry regulation as a priority for the 2027 legislative session. As reported by Houston Public Media, the governor's recommendations include:
- Repealing data center sales tax exemptions, which cost the state over $1 billion annually
- Ensuring infrastructure costs are not passed on to consumers
- Directing public utilities to review cost allocation
ERCOT President and CEO Pablo Vegas described the situation as an "unprecedented change in the pace of growth," with 519 requests from large electricity users in the last two years compared to 24 previously. ERCOT is proposing a new batch review process for connection requests requiring developers to pay a fee and prove land ownership.
Local opposition has produced varied outcomes across the state. San Marcos enacted a citywide ban on data centers using its zoning authority. College Station unanimously voted down a land sale for an AI data center. Hill County initially passed a moratorium but rescinded it after a developer filed a $100 million lawsuit. The Public Utility Commission of Texas conducted a water consumption survey, but fewer than a third of companies responded due to lack of enforcement mechanisms.
Separately, Texas Railroad Commissioner Wayne Christian and Democratic agriculture commissioner nominee Clayton Tucker debated data center policy on East Texas Now, with Christian favoring a problem-solving approach and Tucker calling for a statewide moratorium, according to KLTV.
Texas Grapples with Influx of Data Centers Amid Resource Strain and Calls for Regulation
Houston Public Media
Texas grapples with data center boom, straining power grid and water supply amid local opposition
KETK.com
Hundreds of data centers are coming to Texas. Here’s what you need to know.
The Texas Tribune
EAST TEXAS POLITICS: Embrace or ban? Railroad commissioner, ag commissioner candidate clash on data centers
KLTV.com
Mark Cuban Faces Backlash Over Data Center Opposition Comments
Mark Cuban drew widespread criticism after asserting on X that opposition to AI data centers was a proxy for broader hostility toward AI, according to the Houston Chronicle. Critics responded that concerns center on tangible local impacts including water consumption, power grid strain, noise pollution, and taxpayer subsidies for projects creating relatively few permanent jobs.
Cuban later posted an eight-part response acknowledging the current AI infrastructure boom might be unsustainable, predicting that many planned data centers "won't be fully utilized" and attributing potential overspending to companies' fear of a winner-take-all market dynamic.
Birmingham Approves 30-Year Tax Abatement for Nebius Data Center Amid Lawsuit
Birmingham's Industrial Development Board approved a 30-year tax abatement for Nebius Inc.'s data center project in Oxmoor Valley, granting a 65% abatement on non-educational ad valorem taxes and an 80% abatement on construction-related transaction taxes, according to 1819 News. The project involves a projected $35.9 billion investment over 30 years and is expected to create 78 jobs with average salaries exceeding $90,000, per WBRC.
Mayor Randall Woodfin has distanced the city from the incentive deal, stating that neither he nor city government provided the incentives and attributing the decision to the independent IDB, whose members are appointed by the City Council. This comes despite the mayor's earlier statements in April that no incentives had been offered to Nebius. Nebius spokesman John Sutter confirmed that economic incentives were a "key factor" in the company's decision, projecting $87 million annually in tax revenue.
The project faces a lawsuit from Oxmoor Valley neighbors citing noise and environmental concerns. As reported by the Birmingham Times, Nebius has commissioned a sound study indicating no increase in average noise levels and plans to use a closed-loop cooling system consuming less water than the site's previous occupant. Alabama Power has confirmed sufficient grid capacity without residential rate impacts.
Birmingham enacted a six-month moratorium on future data center developments in March, which was replaced by an updated regulation ordinance on June 13, as reported by WVTM. The moratorium did not affect Nebius's initial filing, though the company withdrew an additional permitting request under the new regulations.
Birmingham grants 30-year tax abatement for AI data center
1819 News
Birmingham IDB Approves Tax Incentives for Nebius Data Center; Lawsuit Filed Over Environmental Concerns
WBRC
Birmingham Mayor Says the City Didn’t Give Nebius Data Center Tax Breaks
The Birmingham Times
Birmingham Mayor Addresses Data Center Concerns, Moratorium, and New Ordinance
WVTM
Birmingham Mayor Randall Woodfin responds to concerns over planned Nebius data center
CBS 42
Pennsylvania Developer Offers $10,000 Per Household; Residents Call It a 'Bribe'
NorthPoint Development has sent letters to households in Hazle Township, Luzerne County, Pennsylvania, offering $10,000 per household from a "$45 million direct resident grant fund" if its proposed 15-building "Project Hazelnut" data center receives its first certificate of occupancy, according to the Center Square. The letter, signed by CEO Nathaniel Hagedorn, also outlines $105 million in potential community benefits over 15 years.
Residents Ed Parks and Ed Negra, whose homes in the Eagle Rock Resort community are adjacent to the proposed site, have called the offer a "bribe" designed to divide the community. They also expressed concern that the project is part of Governor Josh Shapiro's "Fast Track" permitting program despite local opposition.
As reported by the Black Chronicle, Hazle Township supervisors previously voted unanimously to reject NorthPoint's land application, and a Luzerne County judge denied the developer's subsequent appeal last month. State legislators from Lackawanna and Luzerne Counties have described data center development trends in the region as a "gold rush" and are investigating related real estate transactions.
