Daily Digest — August 11, 2026
Tuesday, August 11, 2026

Daily Digest — August 11, 2026

Texas Governor Abbott Faces Rural Skepticism Despite Data Center Restrictions

Texas Governor Greg Abbott has ordered a statewide audit of all data center projects seeking permits and directed regulators to ensure data centers do not pass electrical infrastructure costs to ratepayers, according to the Houston Chronicle. He has also urged the legislature to repeal sales tax exemptions and establish siting rules. Despite these actions, rural Republicans remain skeptical, citing the governor's campaign donations from data center industry players — including a $500,000 contribution from Black Mountain's Rhett Bennett.

The governor's directive mandates that ERCOT and the Public Utility Commission pause approvals until companies provide detailed information on water and power usage, as reported by KVUE. ERCOT is currently considering over 470 gigawatts of connection requests — five times the state's daily record for electricity demand. Less than 10% of data center companies have responded to state surveys regarding their resource usage.

Former President Donald Trump criticized the approach in an interview, calling it a "mistake" and arguing that data centers could surpass the oil industry in significance for Texas, according to Houston Public Media. State Rep. Gina Hinojosa has called the directive insufficient and is pushing for a full moratorium and a special legislative session.

Major tech companies including Meta, Google, OpenAI, Amazon, and Digital Realty have pledged compliance with Abbott's standards, per Texas Scorecard. Meta stated it pays for its own grid infrastructure and launched a fund for water and energy infrastructure. Meanwhile, Diode Ventures withdrew a proposed project in Henderson County, citing inability to meet the governor's directives.

In Hood County, MARA Holdings' plans for two data centers face a lawsuit and community opposition. A judge ruled in Hood County's favor after MARA's parent companies argued the projects should have been automatically approved due to a missed 30-day deadline. The companies have filed a notice of appeal.


Indianapolis City-County Council Advances Data Center Moratorium

The Indianapolis City-County Council voted 23-1 to advance a proposed moratorium on new data center approvals in Marion County until December 31, 2027, according to WFYI. The measure now moves to the Metropolitan Development Commission for final approval, with a potential vote scheduled for August 19.

The moratorium, known as Proposal 238, is an amendment to a broader zoning ordinance the city is developing, as reported by IndyStar. It aims to provide time for a committee of experts and residents to study impacts including campus size, building height, sound levels, and environmental concerns. The council also added an amendment to define "data center" within the county's zoning code.

Three already-approved projects — DC Blox in Warren Township, Metrobloks in Martindale-Brightwood, and Sabey in Decatur Township — would not be affected. Two of those projects are currently entangled in lawsuits, per IndyStar's video report. Councilor Michael-Paul Hart cast the lone dissenting vote, expressing concern the moratorium would merely postpone the issue.

Separately, neighbors in the Irvington community have retained lawyer Scott Federoff to appeal the Metropolitan Development Commission's approval of a use variance permit for DC Blox, according to WTHR. Federoff argues the approval process failed to meet state requirements and that DC Blox's community investment commitments are not legally binding under the current approval.

Marion County would join at least 17 other Indiana counties that have enacted temporary moratoriums, with two counties having banned data centers altogether.


Wisconsin Rapids Planning Commission Approves 12-Month Data Center Moratorium

The Wisconsin Rapids Planning Commission voted 6-0 to approve a 12-month moratorium on data centers within the city, according to WSAU. The decision came during a public hearing for a proposed hyperscale data center at a former paper mill site — a meeting that had been rescheduled and moved to a larger venue due to high public interest, as reported by WAOW.

An existing proposal from PNK Group for a data center at the paper mill site would be exempt from the moratorium, according to the Daily Tribune Media. Community organizer Marissa Johnson stated the moratorium would provide time for regulations to catch up with the industry and allow for "responsible development."

Other Wisconsin cities are also exploring regulatory approaches. Wausau recently adopted a specialized zoning ordinance to define and restrict potential locations for future data centers, as noted by WAOW.