Daily Digest — August 19, 2026
Pennsylvania Governor Signs Executive Order Imposing New Data Center Restrictions
Pennsylvania Governor Josh Shapiro signed an executive order this week imposing what he called the "strictest guard rails in the nation" on data center development, according to Just The News. The order reverses his previous support for the industry, removing data centers from the state's fast-track permitting program, mandating environmental safeguards, and prohibiting the use of non-disclosure agreements on data center projects.
Under the new Governor's Responsible Infrastructure Development (GRID) standards, developers must now:
- Pay the full cost of electricity and provide their own electricity generation
- Limit water usage and implement water conservation measures
- Conduct local community outreach and secure local approvals before obtaining state permits
- Enter legally binding agreements with penalties for non-compliance
- Implement community-benefit agreements covering local hiring, training, and infrastructure investments
As reported by Spotlight PA, the Department of Environmental Protection will not review permitting applications for projects that fail to meet these standards until they complete the local approval process. The DEP will also be required to publish a public map of all proposed data center permitting information, according to TribLIVE.
The policy shift follows what Shapiro described as a "tidal wave of public negativity," with the governor stating that Pennsylvania has become saturated with "data center speculators" who are "scaring our communities." All data center projects, including Amazon's previously announced $20 billion investment in Bucks and Luzerne Counties, will be removed from fast-track permitting.
State lawmakers continue to push for additional measures. Democratic Sen. Katie Muth has proposed a three-year moratorium, while Republican Sen. Jarrett Coleman has introduced a bill allowing communities to enact 18-month moratoriums, per Just The News. Environmental group Food & Water Watch called for an executive order halting state permits and associated power infrastructure entirely.
ABC News and AppleValleyNewsNow report that the trend extends beyond Pennsylvania. Texas Governor Greg Abbott has ordered regulators to halt projects until they ensure residents won't face higher electricity bills. Arizona Governor Katie Hobbs secured a three-year moratorium on sales tax exemptions. New York Governor Kathy Hochul imposed a one-year ban on large data centers. Illinois Governor JB Pritzker halted new sales tax exemptions pending tougher operational standards.
Pennsylvania Gov. Shapiro reverses course on support for data center industry he once embraced
Just The News
Shapiro puts conditions on fast-track perks for data centers amid community backlash
Spotlight PA
Gov. Josh Shapiro announces new limits on data centers in Pennsylvania
AppleValleyNewsNow.com
Governors shift stances on data centers amid public backlash and midterm elections
Breaking News, Latest News and Videos
Gov. Josh Shapiro expected to sign executive order restricting data center development in Pennsylvania
TribLIVE.com
Memphis City Council Advances Data Center Moratorium on First Reading
The Memphis City Council passed the first reading of a proposed 12-month moratorium on data center development, according to FOX13 Memphis. The ordinance would pause the acceptance, processing, and approval of zoning and land use permits for data centers within the city. Memphis currently hosts 12 data centers, including two large campuses operated by SpaceXAI.
As reported by the Memphis Flyer, the moratorium stems from the city's experience with Elon Musk's xAI (now SpaceXAI), which opened a facility in South Memphis nearly two years ago, generating controversies regarding air pollution, noise, and water consumption. Council members, including Jerri Green and J.B. Smiley Jr., stated they felt "left in the dark" about previous projects, according to Action News 5.
Environmental groups Protect Our Aquifer and the Southern Alliance for Clean Energy have voiced support for the moratorium, with SACE calling for an 18-month moratorium across multiple Southern states, per the Memphis Flyer.
The Greater Memphis Chamber has released a statement opposing the moratorium, arguing that Memphis possesses the necessary power infrastructure, water capacity, and logistical footprint to support the industry, and that a pause would surrender the city's competitive leverage, as reported by Yahoo/currently.att. The ordinance must pass two additional readings before becoming final.
Memphis chamber opposes data center moratorium, city to lose 'leverage'
currently.att.yahoo.com
Memphis Data Center Moratorium Begins City Hall Process
Memphis Flyer
Activists urge Memphis leaders to pause new data center developments
WREG.com
First reading of data center moratorium passes through City Council
FOX13 Memphis
Memphis City Council committee advances data center moratorium proposal
Action News 5
Tarrant County Court Blocks Westlake Data Center Vote; North Texas Scrutiny Intensifies
A Tarrant County District Court issued a temporary restraining order on August 17 blocking the Town of Westlake from approving a development agreement for the proposed Circle T Data Center, according to The Texan. The order was sought by the Lakes at Marshall Ridge Homeowners Association, a neighboring Keller community. The Westlake Town Council subsequently voted unanimously to table the agreement.
The proposed 1.1 million-square-foot facility, advanced by Ross Perot Jr.'s company Hillwood through developer PowerHouse Data Centers, would sit on approximately 88 acres at the northern edge of Keller, as reported by KERA News. The lawsuit filed by residents alleges that Westlake failed to provide proper public notice for planning and zoning actions in December 2024 and January 2025, per the Fort Worth Star-Telegram.
Governor Abbott's office confirmed that PowerHouse Data Centers has agreed to comply with state audit requirements ordered on August 13, which mandate data centers to provide information to the PUCT and ERCOT regarding grid stability, water conservation, and cost protections. CoreWeave and Emergent Data Centers also reportedly complied, while one unnamed data center withdrew its plans, according to the Star-Telegram.
A hearing on a temporary injunction is scheduled for August 26. The Keller City Council has passed a resolution opposing the development and engaged legal counsel to review its options.
Meanwhile, WFAA reports that data center discussions are intensifying across North Texas. Denton County commissioners held a meeting focused on data centers, and the Denton City Council is considering a moratorium. In Prosper, the Planning and Zoning Commission tabled review of a $500 million data center project by White Rose Partners near FM 1385 to allow additional review time.
Tarrant County Court Temporarily Halts Westlake Data Center Project
thetexan.news
Gov. Abbott says Westlake data center developer complies with audit guidelines
Fort Worth Star-Telegram
Westlake data center agreement temporarily blocked by Tarrant County court
KERA News
Judge blocks Westlake vote on controversial data center, granting restraining order to Keller HOA
CBS TEXAS
Judge temporarily blocks data center in Westlake, planned data center in Prosper in spotlight
WFAA