Daily Digest — July 27, 2026
Monday, July 27, 2026

Daily Digest — July 27, 2026

Richland, WA Cannot Impose Data Center Moratorium Due to Existing Agreement

Richland city officials have announced they cannot adopt a data center moratorium because of an existing option agreement with Atlas Agro North America, according to the Tri-City Herald. The agreement, signed in December, grants Atlas Agro a year to evaluate a nearly 275-acre city-owned property at 2100 Horn Rapids Road for a $500 million data center complex.

The decision comes despite strong public opposition and neighboring Pasco City Council's recent approval of its own six-month moratorium. City Manager Jon Amundson stated the city intends to implement safeguards regarding water use, power needs, noise pollution, and utility rates in any future purchase and sale agreement. The grassroots group "Tri-Cities Wa Citizens Concerned About Data Centers" has been actively rallying opposition.

Atlas Agro's data center is planned alongside a $1.5 billion "low-carbon" fertilizer plant, with both projects linked by a planned Bonneville Power Administration substation funded by Atlas Agro. The city has also supported the fertilizer plant with a 10-year, $20 million tax break through Washington's Targeted Urban Area program. Other developers considering data centers in the Tri-Cities area include Amazon, Trammell Crow Co., and Pacific Northwest National Laboratory.


Texas Opposition to Data Centers Intensifies With Week of Action and Policy Shifts

Community groups across Texas have launched a "week of action" urging Governor Greg Abbott and state lawmakers to consider a moratorium on data center projects and eliminate state and local tax incentives, as reported by NBC 5 Dallas-Fort Worth and NBC DFW. Activities include rallies at the Capitol, committee testimony, and outreach to elected officials. Coalition members cite concerns about:

- Water consumption estimated at 3–5 million gallons per day per facility

- Strain on the electric grid

- Noise and air pollution

- Rapid growth from approximately 40 planned projects two years ago to nearly 400 currently

Public Citizen's Texas Office is helping equip residents with campaign skills and information.

Separately, polling from the Texas Politics Project at UT Austin shows 56% of Texans oppose data center construction in their communities, according to ABC13 Houston. Governor Abbott has shifted his stance, calling on the Public Utilities Commission to regulate the industry more stringently and proposing that data centers provide their own water and power infrastructure. An East Texas data center project was reportedly canceled for failing to meet these new standards. A Senate committee hearing on data center investments is scheduled for next week.

An opinion piece in the Fort Worth Star-Telegram criticizes state leaders for delaying regulatory action until 2027. The piece highlights that only 17% of data centers surveyed in 2025 responded to the state's required water-use survey, down from 33% the prior year. The author argues counties should be empowered to mandate closed-loop cooling systems and establish noise setbacks, noting most counties currently lack groundwater conservation districts and regulatory authority over water use.


Red Oak, TX Approves Further Data Center Development Despite Resident Protests

Red Oak, Texas, has approved seven data center projects representing an expected $13 billion in investment, according to CRE Daily. Two facilities are currently operating, one is under construction, and four more are in the pipeline. The city council voted 4-1 in May 2026 to rezone 830 acres of farmland for a new Compass Datacenters campus — a $9.45 billion investment featuring eight two-story buildings, each with 200,000 square feet of server space.

Residents have raised concerns about transparency, noise, light pollution, water contamination risks, traffic, and threats to rural character. Grassroots meetings and public protests have been ongoing. Major developers including Google, Compass Datacenters, and DataBank have partnered with the city, receiving 10-year tax breaks. DataBank also secured $1.45 billion for further DFW market expansion.

The development has quadrupled the city's taxable land value and contributed to a doubling of its population. Nearby municipalities including Hill County and Fort Worth are considering moratoriums or stricter regulations in response to similar pressures.


Dowagiac, MI Residents File Class-Action Lawsuit Over Data Center Noise

Residents of Dowagiac, Michigan, are protesting constant noise from the Hyperscale Data center, owned by Alliance Cloud Services LLC, as reported by Michael Anthony Videos. Neighbors on Louise Avenue describe the sound as a 24/7 loud vacuum cleaner that prevents sleep and outdoor enjoyment. The city adopted its first industrial noise ordinance in March and has fined Hyperscale Data for violations, though the company is challenging the city's measurements.

A class-action lawsuit has been filed by resident Lindy Valenzuela, alleging excessive noise. Attorney Laura Sheets stated that the company "does not have the right to substantially interfere with property use and enjoyment." University of Michigan professor Rick Neitzel cited data center noise's association with health issues including high blood pressure and heart attacks.

Hyperscale Data CEO William Horn addressed residents at a special city council meeting, outlining a $100 million expansion into AI computing and offering to purchase properties from affected homeowners. The company says roughly half of its mining equipment is already offline as it transitions operations. No residents expressed support at the meeting. The Holland Sentinel also published an opinion piece addressing the facility's noise impact.


Wisconsin Gubernatorial Candidate Proposes Data Center Moratorium; Democrats Criticize GOP Inaction

Wisconsin gubernatorial candidate Francesca Hong is advocating for a moratorium on new hyperscale AI data centers in the state, according to The Lever. Hong argues the facilities increase energy bills, strain water resources, consume farmland, and allow companies to avoid approximately $2 billion in tax payments. She has introduced a bill to enact the moratorium and draws parallels to the state's Foxconn experience.

Hong's proposals include requiring upfront financial commitments from developers, ensuring ongoing contributions, and investing in renewable energy infrastructure. She frames the opposition as bipartisan, stating it resonates with Democrats, Republicans, and independents.

Separately, State Senator Sarah Keyeski has criticized Wisconsin Republicans for blocking the Data Center Accountability Act (SB 729), as reported by The Capital Times. The bill sought to implement guardrails for natural resource stewardship, protect utility ratepayers, and ensure transparency for data center developments. Keyeski committed to reintroducing the legislation in future sessions.

Wisconsin Watch has published six months of investigative reporting on data center developments statewide, according to the Milwaukee Neighborhood News Service. Their reporting revealed nondisclosure agreements concealing project details, estimated $2 billion in state revenue losses from a 2023 sales tax exemption, a $1 billion data center planned for Grant County, and significant land sales in Port Washington.