Daily Digest — August 13, 2026
Thursday, August 13, 2026

Daily Digest — August 13, 2026

DC BLOX Files Federal Lawsuit Challenging Nashville Data Center Moratorium

DCB Nashville, a subsidiary of DC BLOX, has filed a federal lawsuit in the U.S. District Court for the Middle District of Tennessee against the Metropolitan Government of Nashville and Davidson County. According to The Center Square, the company alleges that Metro officials are unlawfully refusing to process permits for a nearly 70,000-square-foot data center near the Nashville Zoo, calling the city's actions a "targeted attack" that violates federal constitutional protections.

DC BLOX purchased the Grassmere Road property for $23 million in July, where a data center was already operating. As reported by WKRN News 2, the company claims the Metro Council's moratorium — enacted in July and barring data center development until December 1 — is being applied to its project despite Metro's own legal team reportedly advising that vested projects should be exempt.

The lawsuit cites public statements from Councilmember Courtney Johnston and Mayor Freddie O'Connell as evidence of targeted opposition, according to News Channel 5. The Metro Council also approved:

- A July 1 ordinance establishing buffer zones around sensitive sites for data center construction

- An August 4 measure authorizing Metro to acquire DC BLOX's property via eminent domain

The project has drawn bipartisan opposition, with U.S. Sen. Marsha Blackburn (R) and State Rep. Justin Jones (D) both publicly criticizing the proposed location. A viral campaign by the Nashville Zoo generated a petition signed by over half a million people.

DC BLOX is seeking a declaratory judgment to void the ordinances, an order compelling Metro to process its permits, and financial damages. Metro Law Director Tyler Yarbro stated confidence in the legality of Metro's actions, as reported by WKRN News 2 and WSMV 4. No hearing date has been set.


Amazon Faces Protest at Wallula Gap Data Center Open House in Washington State

Amazon Web Services held an open house in Burbank, Washington, to discuss its proposed data center complex at Wallula Gap within the Port of Walla Walla's business park. According to the Tri-City Herald, hundreds of residents attended, including members of the Walla Walla Anti Data Center League, who rallied outside the event.

The opposition group is lobbying Walla Walla County to enact a one-year moratorium on data center development and require a comprehensive Environmental Impact Statement. As reported by Apple Valley News Now, protesters cited concerns about power bill increases and water supply impacts. Amazon representatives stated the facility would:

- Use approximately 14 million gallons of water annually

- Employ water for cooling only 7% of the year

- Secure its own power transmitted by Columbia Rural Electric

The broader project, operating under the code name "Project Tree," envisions a four-phase plan for 16 data centers on over 550 acres. Walla Walla County previously deemed Amazon's application incomplete, requesting a traffic impact analysis. Attendees reported that a lack of a Q&A session left many questions unanswered.

Separately, a local resident and Boeing retiree, Robert Freeman, has proposed a chemical-free water treatment technology to Amazon that he claims could reduce water usage by 50%, according to Apple Valley News Now. Amazon confirmed discussions with Freeman but has made no decision on adopting the technology.


Governor Abbott's Data Center Audit Creates Multi-Month Pause in Texas; Trump Calls Opposition a "Mistake"

Governor Greg Abbott has implemented a temporary pause on data center approvals across Texas while state regulators conduct an audit of the industry. According to Spectrum News, the directive follows less than 10% compliance by data centers with existing state laws mandating power and water usage reporting. The Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) are tasked with the review, which The Business Journals reports will cause a multi-month development pause.

The audit will assess:

- Data centers receiving state financial assistance

- Energy self-sufficiency versus reliance on the state grid

- Water consumption

- Impact on local communities

Former President Donald Trump publicly criticized the approach, telling Punch Bowl News that opposing data centers is "a mistake" and that "data centers could be bigger than oil," as reported by the Texarkana Gazette. Abbott's press secretary responded that the audit aims to control electricity demand and prioritize Texans' interests.

As reported by KCWX 2, Governor Abbott had previously celebrated Texas as an AI development epicenter, citing Google's $40 billion investment in the state. Several companies have already agreed to comply with guidelines including self-generated power and water reuse commitments. State Representative Erin Zwiener (D-Driftwood) expressed skepticism about the order, advocating for local communities to have the power to reject projects.


Fort Worth City Council Unanimously Approves 90-Day Data Center Moratorium Process

The Fort Worth City Council voted unanimously to initiate a 90-day moratorium on new data center applications, according to WBAP. The moratorium would pause all rezoning and permit applications, with the earliest effective start date of February 16, 2027, as reported by Community Impact.

The vote followed public testimony from over 100 speakers, the vast majority opposing data centers, according to CBS Texas. Residents cited concerns about electricity demands, water consumption, noise pollution, and air pollution from generators.

The council also approved two additional measures, as reported by WFAA:

- A requirement for all future data center projects to obtain state approval

- The creation of an 11-member Data Center & Infrastructure Commission to study impacts on energy, water, land use, neighborhoods, and economic development

A final report and recommendations are expected by November 3. Mayor Mattie Parker stated that the council's decisions align with Governor Abbott's recent call for an audit and pause on data center projects, while emphasizing the ongoing need for a statewide framework. The moratorium can be extended for an additional 90 days, and further council action is required in December before full enactment.


Louisville Mayor Halts New Data Center Application Ahead of Expected Moratorium Vote

Louisville Mayor Craig Greenberg has directed his planning team to defer action on a new data center application while the Metro Council prepares to vote on a moratorium for new data center construction. According to Louisville Public Media, Dermody Properties submitted plans to convert a 350,000-square-foot vacant warehouse at 3615 Kramers Lane in the Rubbertown industrial area into a data center.

The proposed facility would be located adjacent to an existing hyperscale campus by Poe Companies and PowerHouse Data Centers currently under construction. The site had previously received approval in May 2024 for development as a distribution warehouse. The revised plan rebrands the facility as a "telecommunications hotel" and includes an electrical substation and generator equipment.

As reported by WHAS11, the Metro Council is expected to vote on a six-month moratorium targeting new hyperscale data center projects. Mayor Greenberg indicated bipartisan support for the measure and stated he would sign it into law if passed. The existing 1.6-million-square-foot data center already under construction in Jefferson County will not be affected.

The mayor is also advocating for permanent regulations, including a ban on hyper-scale data centers in Louisville, according to WHAS11. The Louisville Planning Commission is separately reviewing zoning rules that would restrict data centers over 500,000 square feet and impose special conditions on smaller developments. Local residents have expressed opposition, with some advocating for a complete ban on data center construction in Jefferson County.


Private Gas Plants for Data Centers Draw Environmental Scrutiny and Legal Action

U.S. tech companies are increasingly building private, off-grid gas power plants to supply AI data centers, according to Japan Today, citing research firm Cleanview. Approximately 60 data centers are planned with a combined 97 gigawatts of "behind-the-meter" generation by the early 2030s, potentially producing over 200 million tons of annual CO2 emissions.

Specific projects cited include:

- A 7.5 GW plant in Texas powering Amazon data centers, which has secured air pollution and construction permits

- An xAI data center in Memphis, Tennessee, where the NAACP, co-represented by Earthjustice, has filed a lawsuit alleging unlawful turbine operation in Mississippi

The practice is concentrated among major hyperscalers including Meta, Microsoft, Oracle, and AI labs such as OpenAI and Anthropic. Development is particularly active in Republican-leaning states like Texas. Environmental groups have raised concerns about reduced public accountability for emissions from behind-the-meter facilities compared to utility-scale generation.