Daily Digest — June 30, 2026
Nashville Mayor Invokes Eminent Domain to Block Data Center Near Zoo
Nashville Mayor Freddie O'Connell has filed condemnation legislation to acquire land intended for a DC Blox data center adjacent to the Nashville Zoo, according to reports from Local 3 News, WKRN News 2, WSMV, and WPLN News. The mayor stated that Metro has "a legitimate need for the property adjacent to the zoo," citing potential use by NDOT and the fire department.
The proposed facility would be approximately 270,000 square feet and require 50 megawatts of electricity. Community opposition has been substantial, with an online petition gathering over 533,000 signatures as reported by WKRN. Nashville Zoo CEO Rick Schwartz raised concerns about noise and light pollution affecting thousands of animals, including rare clouded leopards.
In parallel, the Metro Planning Commission has advanced two bills:
- A temporary moratorium on new data center developments
- A ban on large hyperscale facilities in densely populated areas of Davidson County, with stricter regulations for other facilities
DC Blox's legal representative Doug Sloan told WKRN the company is "not backing down," asserting the project is vested and permits are in hand. However, Metro Codes confirmed the permit application has been submitted but not yet issued. DC Blox holds a $23 million contract to purchase the land from MarketStreet Enterprises, according to WPLN. A public hearing on these matters is scheduled for July 7.
UPDATE: Nashville mayor moves to block proposed data center near zoo
Local 3 News
Mayor files eminent domain legislation in fight over proposed data center by Nashville Zoo
WKRN News 2
Metro Nashville wants to seize the land earmarked for a data center near the zoo. Here’s what we know
WSMV
Data center blocked? A rare move by Metro could stop proposal near Nashville Zoo
WPLN News
Fisk University Faces Backlash Over On-Campus Data Center Proposal
Fisk University, a historically Black college in Nashville, is facing opposition from students, residents, and state officials over its proposal to build a data center on campus, according to MS NOW. The project's supporters view it as a revenue source for the financially struggling institution, while critics warn of environmental and resource impacts.
State Rep. Justin Jones, a Fisk alumnus, has called on residents to resist the project. The NAACP has joined the opposition through its "Stop Dirty Data Centers" initiative, with director of environmental and climate justice Abre' Conner citing concerns about disproportionate burdens on Black and frontline communities. State Sen. Charlane Oliver acknowledged the environmental concerns while pointing to the university's dire financial situation and the systemic underfunding of HBCUs.
Virginia Enacts Nation's First Statewide Electricity Tax on Data Centers
The Virginia General Assembly finalized the biennial state budget, which includes a first-of-its-kind statewide energy consumption tax on data centers, as reported by Cardinal News, Law360, WVIR, and Cardinal News. The budget, which takes effect July 1, allocates $75 billion in general fund resources and $207 billion total.
Key data center provisions include:
- A new electricity consumption tax projected to generate $1.2 billion over the biennium, according to Sen. Scott Surovell, D-Fairfax
- A water conservation requirement for new data centers in Eastern Virginia
- Directives for state agencies to review data center tax exemptions, investigate water impact minimization, set noise standards, and collect comprehensive data on energy, water, and generation usage
The tax represents a compromise from Senate Finance Chair Louise Lucas's initial push to eliminate data center tax incentives eight years early. According to Cardinal News, the tax will collect approximately one-third of the revenue forgone through the incentives. Governor Spanberger stated the budget makes Virginia a "national leader" in regulating data centers.
State Sen. Richard H. Stuart (R-25th District) criticized the water provision, arguing it undermines a previously agreed-upon tax exemption compromise due to vague language, as reported by WVIR. Cardinal News also reported that a data center company has reportedly removed Greensville County from its site list due to the legislative debate, raising questions about long-term investment impacts.
Separately, ABC 7 News - WJLA reported on the broader tensions in Northern Virginia, the world's largest data center market, where rapid expansion driven by AI and cloud computing demand continues to generate community pushback over energy, water, noise, and land use concerns.
Virginia enacts new electricity tax for data centers, continues debate on incentives
Cardinal News
Va. Has Nation's First Electricity Tax On Data Centers
Law360
Virginia General Assembly Approves Budget with Data Center Water Conservation and Energy Tax Amendments
WVIR
General Assembly passes Spanberger’s budget amendments, biennial budget is finalized
Cardinal News
Exclusive look inside a Northern Virginia data center
ABC 7 News - WJLA
Missoula County Considers One-Year Moratorium on Data Center Development
Missoula County, Montana, is moving to implement interim zoning regulations that would temporarily ban new data center developments, according to reports from Missoula Current, KPAX News, The Missoulian, NBC Montana, and Nonstop Local News Montana. A public hearing is scheduled for July 9.
The county cited data centers as a "significant new use with distinct potential adverse impacts, including substantial energy and water consumption and heat, noise and vibration." Current zoning policies primarily target cryptocurrency mining and are considered insufficient for modern data center facilities. The county has no active data centers or crypto mining operations.
Key details of the proposed interim zoning:
- Enforceable for up to one year, with a possible one-year extension
- Requires a county study within 30 working days to verify the emergency
- Would not affect an existing application from Idaho-based Krambu for a 7-megawatt AI data center in Bonner, which would continue under current regulations
- Any expansion by Krambu or new applications would fall under the pause
Krambu's fifth application submission was deemed incomplete on June 12, 2026, according to KPAX. Over 100 people attended a recent meeting to voice concerns about the Krambu proposal, as reported by Missoula Current.
Missoula County to consider temporary ban on new data centers
Missoula Current
Missoula County will consider temporary zoning for data centers, could pause developments
KPAX News
Missoula County seeks one-year moratorium on new data centers
The Missoulian
Missoula Co. to consider temporary pause on data centers
NBC Montana
Missoula Co. Commissioners to discuss interim zoning to pause data center development
Nonstop Local News Montana
Anti-Data Center Movement Reshapes Michigan Politics; New Legislation Proposed
The anti-data center movement is becoming a political force in Michigan, according to WIRED. Climate activist Will Lawrence, endorsed by Sen. Bernie Sanders, is running for Congress in Michigan's 7th district on a platform that includes a moratorium on data center development. Internal polling shared with WIRED shows strong support for an anti-data center candidate among likely Democratic primary voters.
At least 11 data centers are planned across the state. Local opposition in two townships in the 7th district has stalled at least two projects, while Oracle sued a township in the 6th district after a negative vote, leading the town to allow development rather than face litigation costs. Governor Gretchen Whitmer publicly supported an Oracle data center opening alongside OpenAI's Sam Altman, praising the $16 billion investment.
Separately, Michigan state representatives have introduced a legislative package aimed at establishing new rules for data center development, as reported by WNDU 16 News Now.
Urbana, Ohio Faces Lawsuit After Rejecting Data Center and Approving Moratorium
Residents of Urbana, Ohio (population under 12,000) successfully lobbied their city council to reject a proposed AI data center by Thor Equities, according to The Daily Dot. The council also approved a 12-month moratorium on the project.
Community concerns centered on the facility's projected resource demands:
- Electricity usage eight times the town's current annual consumption
- Up to 1,800 million gallons of water per year
- Potential noise pollution and strain on local resources
In response, Thor Equities filed a lawsuit challenging the council's decisions. The article notes the small town may face challenges in a legal battle against a large corporation.
