Daily Digest — July 30, 2026

Texas Coalition Demands Special Session on Data Center Growth; Democratic Candidates Call for Moratorium

A coalition of over three dozen environmental and grassroots organizations, led by the Alliance for a Clean Texas, has launched a "data center week of action" urging Governor Greg Abbott to convene a special legislative session, according to KCWX 2 Television. The groups cite concerns over water consumption, rising energy prices, air pollution from natural gas and diesel generators, and noise impacts. Some coalition members advocate for a full moratorium on new construction, while others seek stronger regulatory guardrails.

Democratic gubernatorial nominee Gina Hinojosa has separately called on Governor Abbott to immediately enact a moratorium on new data center construction, as reported by CBS19 and KETK NBC. Hinojosa argues that generous tax breaks are drawing data centers to Texas while placing strain on rural infrastructure and resources, and she wants local communities to have greater say in development decisions.

State Rep. Vikki Goodwin, the Democratic nominee for lieutenant governor, is also pushing for a special session, according to KTSM 9 News. Goodwin highlighted that data center tax incentives — including sales tax breaks on equipment and electricity and local property tax abatements — are projected to reach a billion dollars in 2025 and grow significantly if not curtailed. She warned that waiting until the regular legislative session in January would allow substantial further development and incentive payouts before any new laws take effect.

Meanwhile, Governor Abbott's administration has announced new measures requiring data centers to bear a greater share of grid connection infrastructure costs and to reduce energy consumption during grid emergencies, per CBS19.

Texas Groups Push Abbott to Act on Data Center Growth Concerns

KCWX 2 Television

Texas governor race candidate calls for halt to new AI data centers

CBS19

Texas Dem governor candidate calls on Abbott to issue data center moratorium

KETK NBC

State Rep. speaks on ‘urgent reforms’ of data centers across Texas

KTSM 9 NEWS

Willie Nelson Condemns Data Center Development Near His Texas Hometown

Country music icon Willie Nelson has publicly opposed data center development near his hometown of Abbott, Texas, posting an open letter on X describing the facilities as "loud, water-thieving, light-polluting," according to Billboard. Nelson, 93, and co-founder of Farm Aid, warned that data centers threaten rural communities by consuming farmland and straining water resources.

Nelson's statement comes amid plans for over 50 data centers in the Central Texas region, as reported by NewsNation. The New York Post reported that Governor Abbott, during a campaign stop in Bullard, called for a ban on AI data center developments in rural areas and vowed to eliminate tax breaks for data centers, stating they must bring their own power and implement water reuse strategies.

The broader Texas opposition landscape includes Temple residents attempting to recall city council members over a data center project, a settled lawsuit in Hill County following a moratorium attempt, and a coalition of farmers and ranchers protesting at the State Capitol, according to CultureMap Dallas.

Willie Nelson speaks out against data centers in rural Texas, citing water and light pollution concerns

New York Post

Willie Nelson Lashes Out at AI Data Center Construction in Texas: ‘Loud, Water-Thieving, Light Polluting’

Billboard

Willie Nelson speaks out on proposed data centers in Texas

newsnationnow.com

$100 Billion AI Data Center Campus Announced for DOE's Paducah Site in Kentucky

The U.S. Department of Energy has announced a $100 billion privately funded AI data center campus and dedicated energy infrastructure at the former Paducah Gaseous Diffusion Plant site in western Kentucky, according to WKMS and the Lexington Herald Leader. Key project details include:

- **Developer:** Brookfield Asset Management (data center); NextEra Energy Resources (energy campus)

- **Energy infrastructure:** 2 GW of new natural gas-fired generation, up to 2.6 GW of battery energy storage, transmission upgrades

- **Data center demand:** 1.8 GW for AI and high-performance computing

- **Jobs:** ~8,000 construction, ~600 permanent

- **Timeline:** Data center and battery storage operations as early as 2028; natural gas generation by 2032; full construction completion anticipated by 2031

- **Utilities:** Big Rivers Electric Power Corporation (wholesale), Jackson Purchase Energy Cooperative (retail), Paducah Power System (community partner)

Project leaders have moved to address local concerns about electricity costs. NextEra Energy CEO John W. Ketchum stated the data center will rely on newly built, dedicated energy infrastructure rather than drawing from existing regional resources, as reported by WPSD Local 6. U.S. Rep. Andy Barr noted the campus is expected to generate more electricity than it consumes, with surplus power flowing back into the regional grid.

The project is part of the Trump administration's American Energy Hubs initiative, which aims to repurpose former DOE sites for data center and energy development, according to Kentucky Today. Final approval for the power service agreement is pending from the Kentucky Public Service Commission.

Paducah, Kentucky, Secures $100 Billion Investment for AI Data Center and Energy Hub

Lexington Herald Leader

Officials address AI power cost concerns; Project includes dedicated power generation for data center

WPSD Local 6

$100B data center, gas-fired power plant to be developed around Paducah DOE site

WKMS

Paducah lands $100B AI data center project

Kentucky Today

Trump Administration Advances Plan to Convert Federal Nuclear Sites to Data Centers

The Trump administration is pursuing a broader strategy to repurpose former federal nuclear enrichment sites for AI data center development beyond Paducah, according to The Independent. Additional projects under consideration include:

- A 10-GW data center at a former nuclear facility in Piketon, Ohio

- A site in South Carolina

- A data center on Bureau of Land Management land near Boulder City, Nevada, approved by the Interior Department in June — believed to be the first such project on BLM land

The administration has also urged Congress to preempt state-level AI regulations and granted exemptions from the EPA's Acid Rain Program for "islanded" power plants connected solely to data centers. Environmental groups and local officials have raised concerns. Boulder City spokesperson Lisa LaPlante cited a lack of community input on the Nevada project, and Climate Power senior adviser Jesse Lee argued that fossil fuel-powered data centers will increase utility costs and complicate the transition to renewable energy.

Trump is turning old federal nuclear weapon sites into land for data centers

The Independent

New York Governor Hochul Defends Data Center Moratorium at Henrietta Roundtable

Governor Kathy Hochul held a roundtable discussion at Henrietta Town Court to defend and gather feedback on her July 14 executive order imposing a one-year moratorium on state environmental permitting for new hyperscale data centers exceeding 50 megawatts, as reported by WXXI News and the Rochester Business Journal. Key elements of the state's emerging framework include:

- **Decommissioning bonds:** Developers would be required to post bonds to prevent abandoned facilities from becoming environmental blights

- **Energy regulation:** The "Energize NY" proceeding, directed through the Department of Public Service, would require data centers to pay a premium for grid power or supply their own energy

- **Tax incentives:** Hochul is backing legislation to eliminate sales tax exemptions for data centers

- **Environmental review:** A Generic Environmental Impact Statement will set consistent standards for energy, water, and air quality

The moratorium has directly impacted a $19.5 billion, 500-MW project by Stream U.S. Data Centers (backed by Apollo Global Management) in the Town of Alabama, Genesee County, according to WHEC. Genesee County Legislature Chair Christian Yunker advocated for the project, citing its potential community benefits and plans for a closed-loop water system, but Hochul indicated it is "not yet ready for approval."

Local officials expressed mixed views. Monroe County Executive Adam Bello supported the moratorium, noting projections that data centers could account for over 20% of national electrical use by 2035, per WHEC. Henrietta Town Supervisor Stephen Schultz advocated for zoning rules ensuring data centers improve local infrastructure, as reported by 13WHAM. Republican gubernatorial candidate Bruce Blakeman criticized the moratorium as a potential hindrance to economic and technological growth.

What happens when data centers become obsolete? Hochul wants a plan for that

WXXI News

Power concerns take center stage as Hochul discusses data center moratorium in Henrietta

Rochester Business Journal

Gov. Hochul holds Henrietta roundtable on NY data center construction moratorium

WHEC.com

Hochul visits local leaders, discusses New York’s one-year moratorium on data centers

13wham.com

New York Governor Hochul continues discussions on statewide data center moratorium, Henrietta leaders participate

News 8 WROC

Lowell, Massachusetts Data Center Expansion Dispute Reaches Court

Residents in Lowell, Massachusetts, are engaged in an escalating legal and political fight over the Markley Group's planned expansion of its data center, which has operated in a residential area for over a decade, according to WGBH. The company seeks to add eight diesel-powered backup generators to its existing 19, as reported by WCVB.

The Lowell City Council enacted a 360-day moratorium on new data center construction and expansion in March, but Markley filed a legal challenge resulting in an agreement allowing expansion plans that predated the moratorium to proceed. Residents have filed two lawsuits: a class-action suit over noise pollution and an environmental/administrative suit challenging air quality permits for the new generators. A preliminary injunction hearing was held in Middlesex County Superior Court, with a ruling expected in several weeks.

Separately, Lowell city council members are discussing the urgent need to draft comprehensive data center zoning regulations before the moratorium expires, with concerns raised about the pace of the process, according to LTCLowellMA.

Markley's Chief Legal Officer Devon Cutchins stated the company has invested over $650 million in the community and dismissed the lawsuits as "without merit."

Lowell, Massachusetts, Residents Protest Markley Group Data Center Expansion Amid Legal Challenges

WGBH

Massachusetts’ largest data center faces pushback over expansion

WCVB

Massachusetts’ largest data center faces pushback over Lowell expansion

WCVB Channel 5 Boston

Lowell City Council Discusses Data Center Zoning Regulations Amid Moratorium

LTCLowellMA