Daily Digest — August 17, 2026
Kentucky Faces Bipartisan Backlash Against Hyperscale Data Centers
Opposition to hyperscale data centers is intensifying across Kentucky, uniting Republicans and Democrats against proposed projects, according to WKU Public Radio. In Mercer County, hundreds of residents organized against a Panattoni development near Burgin, leading the county government to pass a one-year moratorium on data centers in unincorporated areas. The Burgin City Council delayed a vote on annexing over 1,000 acres of farmland for the project.
Similar resistance has emerged elsewhere in the state:
- Louisville Metro Council enacted a six-month moratorium after a year of protests
- Oldham County previously blocked a data center project with its own moratorium
- Kentucky continues to offer significant state-level tax breaks to attract data center investment
Separately, a Kentucky mother and daughter in Mason County rejected a $26 million offer from developers — believed to be linked to Meta — for their 1,200-acre family farm intended for a 2.2-gigawatt hyperscale data center, according to the Daily Mail. Despite the family's refusal, the Mason County Fiscal Court approved rezoning of over 2,000 nearby acres in May. The daughter, Delsia Bare, has filed a lawsuit to block the project, citing concerns about power, gas, and water infrastructure impacts. County officials argue the project would fully fund infrastructure and create 400 permanent six-figure jobs.
Texas Governor Orders Comprehensive Audit and Pause on Data Center Grid Connections
Governor Greg Abbott ordered a comprehensive audit of all data center projects seeking ERCOT interconnection on August 3 and paused all new approvals until the review is complete, according to Bloomberg Law. The action comes in response to 474 GW in new electricity demand applications in ERCOT's pipeline, with 90% attributed to data centers — more than five times ERCOT's July peak demand.
The pause follows Senate Bill 6, effective June 20, 2025, which standardizes ERCOT interconnection for large power users, mandates cost-sharing for infrastructure, and allows curtailment during grid emergencies. Governor Abbott also issued directives in June to prevent data centers from shifting infrastructure costs to residential ratepayers.
As reported by Brownwood News, AI data centers are projected to cost Texas $3.2 billion over the next two years in sales tax exemptions. Transparency issues persist regarding water consumption, with only a few companies responding to a mandatory survey from the Texas Water Development Board. UT Austin research indicates the state's water plan does not account for data center demand. Amazon is reportedly planning its own power plant for an 8,000-acre data center in Pecos County.
Texas lawmakers are reacting to the governor's initiative, according to CBS News, as public backlash grows particularly in suburban and rural areas.
North Texas Counties Clash Over Data Centers; Amazon Project Approved
North Texas counties are clashing over data center developments in the region, though a specific Amazon data center project has received approval, according to Mshale. A separate community forum was held in the Texoma area to address public concerns about data centers' consumption of water and power and their impact on land, as reported by Texomashomepage.com.
Virginia's Piecemeal Data Center Moratorium Takes Shape
A patchwork of local data center moratoriums and bans is emerging across Virginia despite Governor Abigail Spanberger's disinclination to impose a statewide ban, according to Cardinal News. The trend is affecting Virginia's longstanding position as the nation's leading data center market.
Key local actions include:
- Front Royal has prohibited data centers in industrial areas
- Frederick County is exploring removing data centers as a permitted use
- Spotsylvania and Loudoun counties are mulling bans
- State Sen. Glen Sturtevant (R-Chesterfield County) has formally called for a statewide moratorium
Real estate firm JLL reports that development is slowing in Virginia and accelerating in "frontier markets" like West Texas. A Virginia Department of Environmental Quality study warned of limited capacity for new water withdrawals in Eastern Virginia. Google's data center in Botetourt County has reduced its water usage estimates by planning electric cooling, but this increases reliance on Appalachian Power, whose grid is 65% coal-powered.
Rural counties like Pittsylvania County, where Stack Infrastructure has committed to a large project, view data centers as essential for tax revenue and jobs. Cardinal News notes that a statewide moratorium could shift demand to states with more carbon-intensive grids.
Separately, a new report detailing the data center industry's financial contributions to Virginia's public services has been released as officials evaluate public opposition, according to the Virginia Mercury.
Florida Data Center Rezoning Denial Heads to Special Magistrate
PBA Holdings has appealed the Palm Beach County Commission's July 15 rejection of its rezoning request for a 202-acre AI hyperscale data center project, according to Stet News. The appeal, filed under the Florida Land Use and Environmental Dispute Resolution Act, will be heard by a special magistrate. The commission had voted 5-1 to deny the proposal for 3.6 million square feet of development, including 1 million square feet for the data center.
PBA's attorney also filed a 57-page lawsuit against WPB Logistics Owner and its backer, TPA Group of Atlanta, alleging breach of a 2021 contract and claims that TPA Group secretly planned competing data centers on land acquired from PBA while objecting to PBA's rezoning request. Opponents from the neighboring Arden community had argued the project posed threats including noise, vibrations, heat, lighting, and potential water contamination. PBA contends the commission acted with prejudged intent to ban data centers.
