Daily Digest — August 26, 2026
Pennsylvania Voters Oppose Data Centers as Issue Dominates Gubernatorial Race
A poll conducted by The Inquirer, New York Times, and Siena University from August 17–21 found that 60% of likely Pennsylvania voters oppose data center development for artificial intelligence, with opposition reaching 83% among voters aged 18–29, according to The Inquirer. The issue has become a central flash point in the state's gubernatorial contest between Governor Josh Shapiro and Republican State Treasurer Stacy Garrity.
Governor Shapiro, who previously championed data center development — including fast-track permitting for a $20 billion Amazon investment in Bucks and Luzerne Counties — has reversed course and signed an executive order to restrict development. As reported by CBS News, Garrity has called for a full moratorium on data center development and demanded Shapiro return $5 million in campaign contributions from AI interests. KDKA political analyst Jon Delano noted that both candidates have effectively "flip-flopped," leaving "no clean hands" on the issue.
Shapiro's executive order, as detailed by local21news.com, removes all data center proposals from fast-track permitting and incorporates "Governor's Responsible Infrastructure Development" (GRID) requirements, which mandate that:
- Data centers provide their own electricity to prevent utility price increases for consumers
- State agencies are prohibited from signing non-disclosure agreements with data center developers
The Pennsylvania Chamber of Business and Industry has responded by introducing a "No Technology Pledge," urging lawmakers who support moratoriums to commit to not using technology reliant on data center infrastructure.
Pennsylvania Township Rejects $50 Million Data Center Offer
A Pennsylvania township rejected a $50 million offer from an unnamed data center developer, with hundreds of residents in attendance, according to Lehighvalleylive.com. The decision reflects the strength of local community opposition to data center proposals across the state.
Fortune Column Proposes Framework for Data Center Community Cost Coverage
Mark Drapeau, founder of Veleonis and editor-in-chief of the Data Catalyst Institute, proposed in a Fortune column that AI data center operators should cover infrastructure, energy, and community costs imposed by their projects, according to UA.NEWS. The proposed reciprocal framework would require operators to:
- Finance new substations and grid connections
- Pay for reserved capacity and add regional generation
- Offer compensation if projects are abandoned
In return, states would guarantee stable tax and permitting conditions with coordinated project review, clear requirements, and deadlines. Drapeau cited a Veleonis and co/efficient survey showing three-quarters of voters are undecided or distrustful of data center operators, and a Gallup poll indicating 71% of Americans oppose an AI data center in their area.
Texas Governor Orders Data Center Audit; State Struggles to Quantify Water Usage
The Texas Water Development Board told a Texas House natural resources committee that the state's water plan currently lacks projections for data center water usage, according to KERA News. The board reported poor response rates on surveys sent to data centers and plans to use ERCOT data to project water usage based on power grid connection requests.
Governor Greg Abbott has ordered a comprehensive audit of all data centers in Texas, focusing on water usage, and has mandated a halt on new data center connections to the ERCOT power grid until the audit concludes, expected by December. As reported by NewsNation, the pause marks a reversal from Abbott's previous promotion of Texas as an AI development hub. Bipartisan resistance is emerging from both rural and metropolitan areas across the state.
Austin City Council Moves to Ban Hyperscale Data Centers
Austin City Council is preparing to vote on a resolution on August 27 to ban large, hyperscale data centers and impose tighter regulations on smaller facilities, according to Community Impact. The initiative, led by Mayor Kirk Watson, would also freeze all new data center project applications within city limits and its extraterritorial jurisdiction while a months-long land development code review is conducted.
As reported by the Austin American-Statesman, Austin currently has about 20 smaller data centers but no hyperscale facilities. City staff note that hyperscale data centers face challenges within city limits due to Austin Energy's compact service territory, transmission constraints, and limited land. A final vote on new zoning regulations is anticipated in spring 2027.
Council members cited concerns including:
- Increased utility bills for residents
- Water contamination risks, referencing incidents in Virginia and Wyoming
- Noise, vibrations, and light pollution
- Environmental justice impacts on low-income and historically underserved communities
Council Member Mike Siegel told KEYE that a majority of the council supports outlawing hyperscale data centers, though implementation could take months as the city must first amend its code to define what constitutes a data center.
Austin leaders poised to ban large data centers, tighten regulations for smaller facilities
Community Impact
Austin doesn't have hyperscale data centers. City Council wants to ban them
Austin American-Statesman
Austin City Council to weigh data center regulations, possible ban in work session
KEYE
Austin leaders consider regulating or banning large data centers
KVUE
Austin City Council considers ban on large-scale data centers due to sustainability concerns
Austin American-Statesman
Lowell Planning Board Approves Markley Data Center Subdivision Plans Amid Opposition
The Lowell Planning Board approved definitive subdivision plans for Markley Group LLC's data center properties at multiple sites, according to the Lowell Sun. The board acted under legal timelines that would have resulted in default approval without conditions if no decision was made by the August 17 meeting.
Markley's expansion has faced significant pushback. The Lowell City Council enacted a 360-day moratorium on data center expansion on March 10, though Markley filed a lawsuit claiming exemption — later dismissed by joint stipulation. In a recent development, Middlesex Superior Court Judge William Barrett granted a motion to stay further installation of emergency backup diesel generators at the facility, which has grown from 7 to 23 diesel-powered generators over ten years. Residents have also filed a class-action noise-nuisance lawsuit. The city is updating its zoning code, which currently lacks a definition or specific standards for data centers.
Palm Beach County Considers Yearlong Data Center Moratorium
Palm Beach County officials are set to vote on a proposed yearlong moratorium on large-scale data center developments, following their rejection of the "Project Tango" proposal west of Loxahatchee, according to the Sun Sentinel. Commissioners will review the moratorium in a first reading and vote by September 24.
The county's existing code lacks specific rules for hyperscale AI data centers. Planned code revisions could introduce:
- Increased landscape buffers
- Sound studies
- Development agreements
At the state level, Governor DeSantis signed a bill in May creating a regulatory framework for large-scale data centers, mandating that they contribute to electricity grid costs and use gray or reused water for cooling instead of potable water. However, specific regulatory decisions remain with local governments.
Separately, PBA Holdings, the owner of the denied Project Tango site, is appealing the county's July decision, arguing the denial was based on public opposition rather than existing regulations. The company has invoked the Florida Land Use and Environmental Dispute Resolution Act and requested a special magistrate hearing.
Data Center Water Use Draws Growing Scrutiny Nationwide
Protests over data center water and energy consumption are growing across the U.S., particularly in water-stressed regions, according to Maven's Notebook. While data center water consumption currently accounts for less than 1% of national total, researchers at Cornell University project U.S. data centers could consume up to 1,125 billion liters annually by 2030 — roughly equivalent to New York City's annual drinking water supply.
Companies including Amazon, Microsoft, and Google are adopting liquid cooling systems, while NVIDIA is developing chips that run at higher temperatures to reduce water-based cooling needs. Experts recommend siting data centers in water-rich areas with ample renewable energy rather than drought-prone regions.
