Daily Digest — July 11, 2026
Indianapolis Pursues Data Center Moratorium as DC BLOX Scales Back Proposal
Indianapolis City-County Council President Maggie Lewis announced plans to introduce a moratorium on new data center development in Marion County during the Metropolitan and Economic Development Committee meeting on July 13, according to WRTV. The proposed pause would amend existing data center zoning regulations currently moving through the council process. Lewis stated the moratorium is intended to allow a thorough evaluation of infrastructure demands, utility capacity, environmental considerations, economic outcomes, and neighborhood quality of life.
The Metropolitan Development Commission had previously advanced a data center zoning ordinance while rejecting calls for a moratorium, even amid protests, as reported by WRTV. Critics including the Citizens Action Coalition have argued the current zoning regulations are too broad. A previous symbolic resolution by the City-County Council on May 4 requested the MDC temporarily halt approvals, though it was not enforceable.
Council opinion is divided. According to CBS4 Indy, Councilors John Bars and Rita Allen have expressed support, while Councilor Michael Paul Hart voiced opposition, warning that rejecting the zoning amendment could leave the city without any regulations. The Indy GOP criticized the timing of Lewis's proposal, released just one business day before the committee meeting.
Separately, Georgia-based DC BLOX has scaled back its proposed data center campus on Indianapolis's east side, according to WFYI. The revised plan reduces the project from three buildings to two, eliminating 25 backup diesel generators and increasing the buffer area south of the Penzy Trail. A final vote by the full Metropolitan Development Commission is scheduled for July 15.
As reported by FOX59, the DC BLOX project on Fentayl Drive is the only current proposal that could be affected if the moratorium passes before its approval. A key unresolved question is whether already-approved projects such as the Martindale Brightwood and Decatur data centers will be grandfathered or subject to a retroactive clause.
Birmingham Nebius Data Center Faces Expanding Legal Challenges
A Jefferson County Circuit Court judge ruled that Birmingham residents Robert Sansome and John Hilley can proceed with their lawsuit to halt construction of a Nebius data center in the Oxmoor Valley neighborhood, according to WBHM. The plaintiffs, who live within 1,000 feet of the 80-acre site, allege the city violated its own zoning ordinances when granting permits. Judge Javan Patton Crayton ruled on the procedural question of standing, not the merits, finding the plaintiffs exempt from certain administrative prerequisites because the zoning decision constituted an interpretation of the ordinance — a question of law.
The judge previously ordered restrictions on certain construction activities, limiting rock hammering, pile driving, and dump-truck operations to start no earlier than 8 a.m. on weekdays and 9 a.m. on Saturdays, as reported by WVTM. A hearing on the residents' request for a temporary injunction to halt construction entirely is scheduled to begin Tuesday. Defense attorneys have indicated that if an injunction is granted, the plaintiffs could be required to post a bond potentially amounting to tens of millions of dollars.
The Greater Birmingham Humane Society has filed a separate lawsuit against the City of Birmingham and developers, according to WVTM. GBHS alleges the data center's operational noise, heat, and lighting could harm thousands of animals at its planned adjacent animal welfare campus and veterinary hospital. GBHS President Allison Black Cornelius stated the organization exhausted all administrative avenues before filing suit.
The city had permitted the Nebius project before enacting a temporary moratorium on data center construction in March and passing new regulations in June, and contends the project is not subject to the new rules. Separately, the City of Leeds has approved a one-year moratorium on data centers, as reported by WVTM.
Judge rules Birmingham residents can proceed with suit to halt data-center construction
WBHM
Greater Birmingham Humane Society sues over Nebius data center near planned animal campus
wvtm
Neighbors’ bid to halt Oxmoor Valley data center construction heads to hearing
wvtm
Small victory for plaintiffs suing to stop data center in Oxmoor Valley
WVTM 13 News
Judge rules Oxmoor Valley neighbors’ lawsuit against Nebius data center can proceed
WBRC 6 News
Taylor, Texas Declines Resident Petition for Data Center Ban, Cites State Law
The Taylor City Council declined to act on a petition signed by over 1,400 residents seeking a temporary ban on data center development, according to the San Antonio Express-News. City officials announced during a contentious meeting that Texas law prohibits zoning changes through popular vote, blocking the petition organized by HALT Taylor Data Centers from proceeding.
City Manager Brian LaBorde subsequently apologized for the timing of the announcement, which was posted online as residents gathered at city hall to speak on the issue, as reported by KEYE. LaBorde acknowledged the city's current land development code and zoning are inadequate for regulating data centers.
Despite declining the petition, Taylor is actively updating its zoning code. Proposed changes include:
- Restrictions on water and energy usage
- Noise level limits
- Light and air pollution controls
- Setback requirements from homes
- Annual transparency reports from operators
The city is accepting public comments on the proposed regulations throughout July, with an ordinance anticipated for council consideration in September, according to the Taylor Press. A separate lawsuit against Blueprint Data Centers related to a facility approved in 2024 was dismissed by a state court judge but has been appealed.
‘Represent us’: Tensions flare over Taylor data center growth
San Antonio Express-News
Taylor declines to act on petition seeking data center ban, citing Texas law
Austin American-Statesman
Taylor city manager apologizes for timing of data center petition announcement
KEYE
Taylor petition to restrict new data centers ruled ineligible for ballot under Texas law
CBS Austin
Taylor official apologizes for 'untimely' post about online data center debate
Taylor Press
Montana Counties Diverge on Data Center Regulation; Missoula Enacts Moratorium
Missoula County commissioners unanimously enacted a one-year moratorium on new or expanded data center development, according to the Bozeman Daily Chronicle. The interim zoning applies to all zoned and unzoned areas within the county but excludes the city of Missoula, whose zoning map does not currently permit data centers. All 30 speakers at a public hearing supported the moratorium.
The decision was prompted by a previously proposed AI data center by Idaho-based Krambu at the Bonner Mill Industrial Park, which was withdrawn after the property owner pulled his signature from the application due to public concerns, as reported by the Missoula Current. County Planning Director Karen Hughes noted that current regulations, adopted in 2021 in response to a cryptocurrency mining operation, are insufficient to address concerns regarding water quality and quantity, air quality, heat, noise, vibration, and energy infrastructure. Hughes highlighted that providing backup power for a 37-megawatt data center could equal the energy needs of all Missoula households.
The county is required to initiate a study within 30 days to verify the emergency and determine mitigation strategies. The moratorium can be extended for an additional year but cannot permanently prohibit data centers.
Meanwhile, Yellowstone County is taking a different approach. The County Commission directed the county attorney to seek a legal judgment on the constitutionality of a citizen initiative that would require two-thirds voter approval for data center construction or expansion, according to the Daily Montanan. Deputy County Attorney Steve Williams cited a Montana Supreme Court ruling in Treasure County v. Edlund, which found a similar citizen initiative regulating wind farms unconstitutional. The initiative was spurred by Quantica Infrastructure's plans for a 5,000-acre data center campus near Broadview.
Commissioner Josh Slotnick encouraged public participation in the upcoming 2027 legislative session, anticipating lobbying efforts from AI companies at the state level.
Missoula County adopts temporary moratorium on data centers: The interim freeze could prohibit new or expanded data centers in the county, excluding Missoula
Bozeman Daily Chronicle
Missoula County officially adopts data-center moratorium
Missoula Current
Montana counties take different approaches to data center regulation
Missoula Current
Counties take different approaches to data center regulation
Daily Montanan
Missoula County Enacts One-Year Moratorium on Data Center Zoning After Bonner Proposal
Newstalk KGVO
Pennsylvania Developer Files Data Center Application Hours Before New Zoning Rules Take Effect
A developer submitted an application for a 150,000-square-foot data center in Upper Hanover Township, Pennsylvania, just seven hours before the township's board of supervisors unanimously adopted new zoning amendments regulating data centers, according to Mainline Media News. Gwynedd Valley-based Hanover Development L.P. filed for the facility on 37 acres off Gravel Pike on June 9. Because the application was deemed complete prior to the vote, the project is exempt from the stricter regulations.
The new amendment would have required:
- Data centers to be located in outdoor storage/commercial/industrial zones, not the light industrial zone where the project is proposed
- 500-foot setbacks from sensitive areas
- Economic and environmental impact evaluations
- Noise studies with decibel limits
- A 10% clean energy requirement
- Water feasibility studies and closed-loop cooling systems
- Plans for e-waste disposal and thermal studies
The developer's attorneys filed a conditional use application along with a zoning Substantive Validity Challenge Application, arguing that if data centers are not permitted in the light industrial zone, the ordinance would be substantively invalid. This situation illustrates what state Rep. Paul Friel's proposed bill aimed to prevent by pausing applications once a matter appears on a meeting agenda — that bill has not yet passed the state Senate.
A hearing is not expected before October. The township has held a joint meeting with the planning commission to gather community input on strengthening the newly adopted zoning amendment.
