Daily Digest — July 23, 2026
Nashville Enacts First Data Center Regulations and Permit Moratorium
Nashville's Metro Council unanimously approved the city's first comprehensive zoning regulations for data centers and enacted a temporary moratorium on new permits, according to multiple local outlets including WPLN News and News Channel 5. The legislation, passed at the council's July 21 meeting, follows months of public opposition centered on a proposed DC BLOX data center near the Nashville Zoo.
Key provisions of the new regulations include:
- Distance requirements from sensitive sites such as schools, daycares, churches, and the Nashville Zoo (100 feet minimum; 2,640 feet for the largest facilities)
- A ban on the largest data centers within Davidson County
- Environmental restrictions on air pollution and water usage
- A mandate for at least 15% renewable energy use with incentives for reaching 50%
- Noise limits and requirements for emergency response and power resiliency plans
- Reporting requirements on power and water usage with public disclosure of compliance reports
The permit moratorium runs through December 1, as reported by the Chattanooga Times Free Press, though The Center Square reported a December 10 expiration date. Council member Courtney Johnston, who sponsored the moratorium extension, stated the pause provides time to refine policies.
The legal implications for the existing DC BLOX project remain uncertain. DC BLOX submitted permit applications before the new rules took effect, and Council member Rollin Horton indicated that whether the new regulations apply to those filings is likely to be litigated, according to News Channel 5. Mayor Freddie O'Connell's legislation to acquire the DC BLOX property via eminent domain advanced to its second reading. The property recently sold for $23 million and was valued at $37 million by the county, as reported by the Chattanooga Times Free Press. The Nashville Scene confirmed the measures received final approval at the July 21 meeting.
The proposed DC BLOX project drew bipartisan opposition, with U.S. Sen. Marsha Blackburn (R) and State Rep. Justin Jones (D) publicly criticizing the site choice, according to The Center Square. Governor Bill Lee recently signed House Bill 1847, requiring data centers using over 50 megawatts to cover their own electricity costs.
Nashville passes first regulations on data centers, as city officials promise more action
WPLN News
What Nashville's new data center rules mean for the zoo-area project
News Channel 5 Nashville
Nashville halts data center development for now
The Center Square
Nashville greenlights data center regulations, permit moratorium
Chattanooga Times Free Press
Metro Council Approves Data Center Regulations, Moratorium
Nashville Scene
Texas Democrats Push for Data Center Regulations Amid Bipartisan Backlash
Democratic U.S. Senate nominee James Talarico unveiled a plan for stricter data center regulations in Texas, proposing the repeal of state sales tax exemptions, water reuse mandates, and protections preventing infrastructure costs from being passed to ratepayers, according to the Texas Tribune. As reported by the Houston Chronicle, Talarico's plan shares similarities with proposals from Governor Greg Abbott, though Talarico goes further by proposing to empower local communities with zoning authority over data center siting.
The issue is creating unusual cross-partisan dynamics in Texas. State Rep. Gina Hinojosa, a Democratic gubernatorial candidate, is touring rural communities to address data center concerns. State Rep. Vikki Goodwin, State Sen. Sarah Eckhardt, and lieutenant governor nominee Clayton Tucker have endorsed a moratorium on new development, as reported by the Texas Tribune. Republican protest groups have also formed, including one in Lubbock, according to myMotherLode.com's reporting on the national trend.
Attorney General Ken Paxton is reviewing multiple pending requests from counties, including Hood and Delta, seeking opinions on their ability to enact local moratoria, as reported by the Houston Chronicle. Texas counties currently lack zoning authority, a central point of contention. Governor Abbott previously championed Texas as an "epicenter of AI development" but has recently proposed a ban on data center development in rural neighborhoods.
EPA Proposed Rule Could Affect Public Input on Texas Data Center Air Permits
The EPA is proposing a rule change that would give states greater authority over public notice and input processes for minor air pollution permits, according to the Graham Leader. In Texas, this could allow the TCEQ to revise its rules, potentially limiting residents' ability to protest permits including those for data center diesel generators.
Environmental advocates expressed concern that many large data centers use numerous diesel generators but still qualify for minor permits, raising cumulative impact questions. The EPA maintains the change aims to reduce administrative burdens and that states would retain the choice to decide what's appropriate for their communities. A virtual public hearing on the proposal was scheduled for July 22.
East Texas Data Center Developer Withdraws After Community Opposition
A developer has withdrawn from a proposed data center project near a lake in an East Texas town following active resident protests and petitioning, according to KETK NBC. Residents stated that the broader fight against such developments in the area is not over.
Montgomery County Council Moves Toward 18-Month Data Center Moratorium
Montgomery County, Maryland council members signaled broad support for an 18-month moratorium on data center development, merging two competing proposals that originally called for six-month and two-year pauses, according to Bethesda Magazine. The Economic Development Committee unanimously recommended the 18-month timeline, which now proceeds to the full County Council for a vote on July 28, as reported by The MoCo Show.
Key developments include:
- Removal of an exemption that would have allowed the proposed Dickerson data center project (developed by Atmosphere Data Centers) to continue during the moratorium
- Advancement of a zoning text amendment to prohibit hyperscale data centers countywide while long-term regulations are developed
- Plans to develop regulations addressing clean energy consumption, noise, watershed protection, utility costs, public health, and community benefits
The legislative push follows a six-month moratorium imposed by County Executive Marc Elrich's executive order in June, which Atmosphere Data Centers is currently appealing, as reported by Bethesda Magazine. Council members noted interest in developing a data center tax rate similar to Loudoun County, Virginia. Coverage of the moratorium was also provided by WTOP, FOX 5 DC, and WUSA9.
Montgomery County Councilmembers signal support for 18-month data center moratorium
Bethesda Magazine
Montgomery County Moves Closer to 18-Month Data Center Moratorium
The MoCo Show -
Montgomery Co. considers 18-month pause on data centers
WTOP
Montgomery County committee recommends pause on data centers
WUSA9
Coweta County, Georgia: Project Sail Approved, Project Oak Hearing Rescheduled, Referendum Discussed
In Coweta County, Georgia, the Board of Commissioners approved the Project Sail hyperscale data center (4.9 million sq. ft.) in a 3-2 vote despite significant community opposition, according to Time Magazine. A "Stop Project Sail" Facebook group has grown to over 8,000 members, and residents are pursuing legal action against the county and developer Atlas Development. The county subsequently enacted a moratorium on future data center projects.
Separately, the public hearing for the Project Oak data center has been rescheduled to August 25 at the developers' request, according to The Newnan Times-Herald. Developers Headwaters Site Development and LDO Coweta are revising their site plan and seeking to remove a square footage cap from a prior rezoning condition. Residents expressed strong opposition at the board meeting, with one representative stating their community is "united in absolute opposition."
A referendum is also being discussed as a potential means to resolve the Project Sail debate, according to TheCitizen.com.
National Roundup: New York Moratorium, OpenAI Expansion, Tribal Consultation Concerns
Governor Kathy Hochul held a roundtable on Long Island to highlight her executive order establishing New York's first statewide moratorium on new hyperscale data centers for up to one year, according to LongIsland.com. Key initiatives under the order include:
- Direction to the Department of Public Service to begin the "Energize NY" proceeding requiring data centers to pay more for energy or supply their own
- Development of a Generic Environmental Impact Statement assessing energy, water, and air quality impacts
- A Community Investment Framework to guide localities in negotiating community benefits
- Consideration of a Grid Acceleration Fund to compel data center investment in grid infrastructure
- Pursuit of legislation to repeal sales tax exemptions for data centers statewide
The moratorium has drawn criticism from former President Trump, bringing additional political attention to the issue, as reported by MSN.
Tribal Nations are also challenging data center developments for failing to conduct proper consultations, according to Truthout.
OpenAI is projecting $750 billion in data center spending by 2030 and has announced its first data center where it serves as lead developer, according to Semafor. A Politico poll cited in the report indicates more Americans now oppose data centers than support them.
Time Magazine reported that over 300 municipalities have implemented bans or moratoriums on hyperscale data centers, and a national day of protest saw 142 demonstrations across 42 states. Massachusetts Governor Maura Healey has announced a temporary halt on data center sales tax exemption applications and plans to release a framework for responsible development, according to The Indian Express.
On Long Island, Governor Hochul Highlights First Statewide Moratorium On New Hyperscale Data Centers As Support Continues To Grow
LongIsland.com
Trump’s criticism puts New York data center moratorium in the spotlight
msn.com
As Data Centers Sidestep Tribal Consultations, Tribal Nations Are Fighting Back
Truthout
OpenAI to spend more on data centers
Semafor
AI future needs responsible data-centre regulation
The Indian Express