Daily Digest — July 3, 2026
Lowell, Massachusetts Faces Heated Community Debate Over Data Center Expansion
A public forum on data center development in Lowell, Massachusetts drew over 200 residents, according to the Lowell Sun. The forum, organized by the city's Department of Planning and Development, focused on the Markley Group's 350,000-square-foot facility, which borders a low-income residential neighborhood. Residents voiced complaints about noise, air and light pollution, traffic, utility cost increases, and diesel fumes from backup generators.
As reported by NBC Bay Area and WPRI, the ongoing eastern U.S. heat wave has intensified concerns, as extreme heat increases data center electricity demand for cooling and can trigger diesel generator use. State Representative Tara Hong noted that the affected Sacred Heart neighborhood has been designated by the state as facing higher environmental and health risks due to its predominantly low-income population.
Markley Group CEO Jeff Markley defended the facility, stating the company has planted over 2,000 trees, only uses generators during actual power disruptions, and consumes approximately 118,000 gallons of water daily during peak summer — described as a small fraction of the city's overall consumption, per SRN News.
The Lowell City Council previously voted 10-0 to impose a moratorium on the expansion of existing data centers and the construction of new ones. The city is now updating its 20-year-old zoning code, which currently lacks specific definitions and standards for data centers. The DPD stated this forum was the first of many community discussions aimed at informing zoning recommendations.
Data center zoning forum in Lowell draws capacity crowd
Lowell Sun
Heat adds to strains on areas with data centers, raising temperature on AI debates
NBC Bay Area
Heat adds to strains in areas with data centers, raising temperature on AI debates
WPRI.com
Heat adds to strains on areas with data centers, raising the temperature on AI debates
SRN News
New Mexico Lawmakers Propose Statewide Data Center Moratorium
Four Democratic state lawmakers in New Mexico plan to introduce legislation during the 2027 session to enact a statewide moratorium on new large-scale data center development, according to the Santa Fe New Mexican and Albuquerque Journal. The lawmakers — Reps. Micaela Lara Cadena, Angelica Rubio, Eleanor Chávez, and Sen. Carrie Hamblen — aim to pause new projects while the state develops standards for evaluating impacts on water use, energy demand, emissions, ratepayer costs, and community benefits.
The proposal follows local moratoriums already adopted by Socorro and Santa Fe counties, as reported by Organ Mountain News. A key catalyst is the controversy surrounding Project Jupiter, an AI hyperscale data center under construction in Santa Teresa, Doña Ana County, for Oracle and OpenAI. Doña Ana County's approval of a $165 billion industrial revenue bond for the project has prompted lawsuits from county residents and advocacy groups including the New Mexico Environmental Law Center.
The proposal faces opposition. Senate Majority Whip Michael Padilla argued a moratorium could send a negative economic message and hinder New Mexico's growth in emerging industries, per the Albuquerque Journal. The lawmakers have consulted with counterparts in Maine, where a similar statewide ban was recently passed but vetoed by Governor Janet Mills. Coverage was also noted by KRQE and Source New Mexico.
NM could be first state to ban new data centers
Albuquerque Journal
Four New Mexico lawmakers plan to propose statewide data center moratorium
Santa Fe New Mexican
New Mexico lawmakers plan data center moratorium after Project Jupiter concerns
Organ Mountain News
Four New Mexico lawmakers to propose bill that would pause construction of new data centers
KRQE
New Mexico lawmakers announce proposed statewide moratorium on data centers
Source New Mexico
Pennhurst Data Center Developer Appeals Zoning Denial in Chester County, Pennsylvania
Penn Hurst Holdings DE LLC has appealed the East Vincent Township Board of Supervisors' denial of its conditional use application for a 1.9-million-square-foot data center on the former Pennhurst Hospital grounds, according to pottsmerc.com. The 123-acre project was denied on May 21 based on the township's interpretation of conflicts within its Industrial Mixed Use zoning district provisions.
The developer argues the zoning code's contradictions make compliance impossible and should be resolved in favor of the least restrictive use. The case will be heard in Chester County Court of Common Pleas; no date has been set. East Vincent Advocacy, a citizens group, intends to seek intervenor status.
Several surrounding townships — Upper Pottsgrove, North Coventry, New Hanover, and Lower Pottsgrove — are developing data center-specific zoning ordinances. Separately, a state bill sponsored by Rep. Paul Friel (D-23rd) that would allow municipalities to enact six-month pauses on data center applications passed the Pennsylvania House 201-1 and awaits Senate action.
San Marcos, Texas Faces State-Level Challenge to Data Center Ban; Governor Abbott Proposes Rural Restrictions
San Marcos, Texas became the first city in the state to ban data centers within its limits after a 4-3 City Council vote on June 16, as reported by KVIA and Hill Country News. The council redefined data centers in its zoning regulations, making them ineligible for development anywhere in the city, citing concerns over water and energy resource impacts.
State Senator Paul Bettencourt has announced plans to challenge the ordinance, arguing the city lacks legal authority for a comprehensive zoning ban on data centers under state law, according to KXAN. The report also notes that Hays County maintains an emergency pause on data center reviews in unincorporated areas through year-end, and that Hill County rescinded its own moratorium after a developer filed a $100 million lawsuit.
Separately, Governor Greg Abbott has proposed banning new data centers in rural areas of Texas, according to Fox Rio Grande Valley. Abbott stated that any new AI data center in Texas must be independently financed, secure its own power and water resources, and minimize electricity cost increases for local residents. These recommendations are intended for consideration by the Texas Legislature in its upcoming session.
State senator plans to challenge San Marcos' data center ban, says city lacks legal authority
KXAN
Central Texas city becomes the first in state to ban data centers, testing its local control
Hill Country News
San Marcos becomes the first Texas city to ban data centers, testing its local control
KVIA ABC-7
Governor Abbott Pushes For Rural Data Center Ban In Texas
Fox Rio Grande Valley