Daily Digest — July 28, 2026
Texas Agencies Unveil Grid Policies as Capitol Rally Demands Data Center Moratorium
Texas state agencies have outlined new policies to regulate data center connections to the state power grid. According to Community Impact, the Public Utility Commission (PUC) and ERCOT will prohibit data centers from appropriating existing power resources, evaluate large grid-connection projects in batches, and require large consumers to pay for the grid infrastructure their operations necessitate. The PUC approved ERCOT's batch study process on June 18. The initiative follows a June 10 order from Gov. Greg Abbott emphasizing affordability, reliability, and community interests.
Simultaneously, opponents of data center expansion staged a protest at the Texas Capitol. As reported by KFDM, demonstrators led by organizer Linda Pauley demanded an immediate moratorium on new data centers and called for a special legislative session. The governor's office responded that safeguards are already in place, including directives requiring data centers to pay for their own infrastructure, bring their own power, and reuse water.
Texas Agriculture Commissioner Sid Miller hosted a separate rally at the Capitol titled "Press Pause on Hyperscale Data Centers," according to KABB FOX San Antonio and WOAI. Miller cited threats to the state's water supply and electric grid and called on Gov. Abbott to take immediate action to protect agricultural communities. Speakers at the rally, including Texas ranchers, raised concerns about noise pollution, air quality, and water quality impacts.
Grassroots organizations including the Alliance for a Clean Texas and Public Citizen-Texas are conducting a statewide "week of action" with rallies, protests, and public meetings, as reported by The Center Square. According to WFAA, ranchers and farmers at the Capitol rally highlighted the recent withdrawal of developer Diode from a project in East Texas near Cedar Creek Lake, where opponents had raised concerns about drawing five million gallons of water daily. Commissioner Miller described the withdrawn project as "one out of hundreds" planned.
Texas agencies outline plans to balance affordability with data center growth
Community Impact
Data center fight explodes at Texas Capitol, opponents demand Abbott halt expansion
KFDM
The Texas Commissioner of Agriculture calls for a pause on data centers
KABB FOX San Antonio
Texas lawmakers question data center tax breaks as protesters demand regulation
CBS19
Texans rally at Capitol, push for special session on data center oversight
KLTV.com
Anti-data center week of action scheduled in Texas, first rally in Austin Monday
The Center Square
Ranchers, farmers rally at Texas Capitol, pressing for pause on data centers
WFAA
Ranchers and farmers rally at the Texas Capitol, pressing for a pause on data centers
WFAA
Texas Senate Finance Committee Reviews Data Center Tax Exemptions
The Texas Senate Finance Committee held a hearing to re-evaluate the state's sales tax exemption for data centers, according to KFDM. Committee Chair Joan Huffman emphasized examining whether the incentive still provides justifiable returns for taxpayers. Brad Reynolds from the Texas Comptroller's Office noted that the Dallas-Fort Worth metro area became the second-largest co-location multi-tenant data center market without the exemption.
As reported by FOX 7 Austin, the projected cost of the 2013 sales tax exemption has surged from $14.6 million in 2014-15 to an estimated $3.3 billion by 2028-29. Chair Huffman stated her intent to file new legislation to reexamine the exemption's justification. According to CBS19, lawmakers are considering whether to maintain, reduce, or eliminate the tax incentive before the next legislative session. The Senate Business and Commerce Committee is also set to examine the broader impact of data centers on the Texas grid.
Hillsboro, Oregon Enacts 120-Day Moratorium on Data Centers
The Hillsboro City Council unanimously approved a 120-day moratorium on the construction and expansion of data centers and battery energy storage systems at a special meeting on July 27. According to Forest Grove News-Times, no new proposals will be accepted, processed, or approved until at least November 24. The moratorium was enacted under a state law allowing cities to pause developments if existing ordinances are deemed insufficient to prevent public harm.
As reported by KPTV, the resolution (No. 2932) also includes new restrictions on accessory uses, limiting them to less than 20% of a site's total structure square footage, original construction value, or contracted electrical service capacity (up to 20 megawatts). According to KATU, the decision was driven by concerns regarding high electricity and water consumption, noise pollution, limited job creation, and tax incentives provided to developers.
Council President Rob Harris stated that the short notice for the hearing was intentional to prevent a surge of applications, similar to what occurred before a previous statewide moratorium on data center tax incentives, per the Forest Grove News-Times. Staff have been directed to explore development code amendments including limiting where data centers can be built, reclassifying them by function, and updating design standards. A public hearing with the Hillsboro Planning Commission is scheduled for August 26, with potential council adoption of amendments as early as October 6.
Lawsuit Filed Against Hillsboro and Tech Companies Over Data Center Approvals
The land-use nonprofit 1000 Friends of Oregon, joined by a city council member, a school board member, local farmers, and an environmental group, has filed a lawsuit against the City of Hillsboro, Washington County, and tech companies including Adobe, CoreWeave, Dropbox, Flexential, and Nvidia. According to the Missoula Current, the suit challenges the approval of 17 new data centers, alleging they were greenlit without adequate public notice and benefited from decades-old state tax breaks.
The lawsuit is part of broader opposition in the area. Councilmember Kipperlyn Sinclair has advocated for stricter Type 3 zoning processes requiring public hearings and council votes instead of administrative Type 2 approvals. School board member Tammy Carpenter is running for Oregon House District 27 on a platform that includes a moratorium on data centers. A contentious City Council meeting in June saw Councilmember Cristian Salgado censured for mocking residents during public comment.
Ohio Data Center Politics Intensify as Gubernatorial Candidates Stake Positions
Ohio's Democratic gubernatorial candidate Amy Acton has announced support for a conditional moratorium on new data center development, according to The Statehouse News Bureau. The conditions include:
- 100% union labor for construction
- Stringent environmental standards
- Community benefit agreements
- Full coverage of all utility costs, ideally by providing their own energy
- Transparency free from non-disclosure agreements
Her Republican opponent, Vivek Ramaswamy, has generally expressed support for data centers while also advocating for them to manage their own energy needs, including through nuclear power. Ramaswamy's campaign criticized Acton for echoing ideas he has championed for months. An analysis by Innovation Ohio suggests Ramaswamy's personal investment portfolio includes segments of the data center supply chain.
As reported by Crain's Cleveland Business, an April survey by Bowling Green State University found that over 70% of Ohio residents favor a temporary ban on new data center construction. The next governor will influence data center development through appointments to JobsOhio, the Ohio Power Siting Board, and the Public Utilities Commission of Ohio.
Nvidia Reportedly Weighing $250 Billion Financing for OpenAI Data Center in Ohio
Nvidia is reportedly in discussions to provide approximately $250 billion in financing guarantees to OpenAI for the development of an AI data center in southern Ohio, according to indica News, citing a Wall Street Journal report. The financing would enable OpenAI to lease a 10-gigawatt data center campus being developed by SoftBank's energy subsidiary. The total project cost, including Nvidia chips, is projected to exceed $500 billion.
The first phase of the facility is anticipated to be operational by 2028, providing approximately 800 megawatts of power. The power supply is reportedly controlled by the U.S. government and funded by Japan through a trade agreement related to a natural gas plant investment. Separate discussions are underway for up to $350 billion to finance OpenAI's chip purchases.
Georgia Governor Opposes Statewide Moratorium as Industry Launches PR Campaign
Georgia Governor Brian Kemp has publicly opposed a statewide moratorium on data center development, according to the Augusta Chronicle. Kemp criticized former Atlanta Mayor Keisha Lance Bottoms' proposal for such a pause and the Governor of New York's actions, calling moratoriums "irresponsible," per the Covington News. He argued that individual communities should determine where data centers are built while acknowledging concerns about AI's implications.
Meanwhile, industry advocacy groups including Connected Georgia and the Georgia Chamber of Commerce's Georgia Digital Infrastructure Alliance have launched PR campaigns and lobbying efforts, as reported by The Current. These efforts come amid what the outlet described as "intense statewide outrage" at local government meetings. Proposals for a statewide moratorium and adjustments to tax incentives were debated during the 2026 legislative session but none passed.
In Columbia County, officials approved rezonings for a Google data center in Appling despite resident opposition, with the partnership implementing development standards including strict decibel limits, water supply protections, and an end-of-life strategy, according to the Augusta Chronicle. Separately, Senator Raphael Warnock has called for stronger community protections from data center impacts, per TheCitizen.com.
Kemp backs data centers while raising concerns about AI risks
The Augusta Chronicle
Kemp touts data centers, calls AI “scary” but essential
The Covington News
Georgia considers potential data center moratorium
Politico
Warnock Calls for Community Protections from Data Centers
TheCitizen.com
Data center controversy is hot topic at Texas Capitol
FOX 7 Austin
Sources
Hillsboro puts 4-month pause on building, expanding data centers in the city
Forest Grove News-Times
The Hillsboro City Council unanimously enacted a 120-day moratorium on new and expanding data centers and battery energy storage systems due to public outcry. This pause allows the city to review and amend its development code to better regulate future projects. Proposed changes include limiting where data centers can be built, reclassifying them by function, and updating design standards with potential height limits and sustainability requirements.
Sid Miller to host Capitol rally for pause on hyperscale data centers
WOAI
Texas Agriculture Commissioner Sid Miller hosted a rally at the Texas Capitol calling for a pause on new hyperscale data center development. Miller cited concerns about the state's water supply and electric grid, urging Governor Greg Abbott and other state leaders to take immediate action. Governor Abbott has also expressed opposition to data centers.
Backlash over data centers, power costs tests GOP’s hold on Ohio
Crain's Cleveland Business
Data centers and associated power costs are generating significant backlash in Ohio, posing a challenge to the state's Republican party. A survey indicates that over 70% of Ohio residents support a temporary ban on data center construction. This widespread opposition is testing the political landscape in the state.
Georgia lawmakers weigh data center regulations as industry ramps PR efforts
thecurrentga.org
Data center industry advocacy groups are launching PR campaigns and lobbying efforts in Georgia to improve public perception amidst growing opposition and legislative attempts to regulate the sector. This comes as state lawmakers consider new restrictions and local communities voice concerns over specific projects, such as one by OpenAI in Effingham County, and a previously approved one in Marietta.