Daily Digest — August 31, 2026
Virginia Public Opinion Shifts Toward Data Center Regulation
According to Virginia Business, public and political sentiment in Virginia has turned sharply against data centers, once viewed as economic drivers. The state enacted a new electricity consumption tax of $0.011 per kilowatt-hour on data centers effective July 1, after a proposal to eliminate the sales tax exemption was rejected.
Several localities are moving to restrict data center development:
- Virginia Beach is moving to prohibit large-scale data centers
- Chesapeake approved an eight-month pause on applications
- Loudoun County is considering a temporary moratorium
- Senator Glen Sturtevant has called for a statewide moratorium on data center approvals
The legal landscape is also shifting. A Court of Appeals ruling voided a data center rezoning in Prince William County, now appealed to the state Supreme Court. A nuisance lawsuit against Amazon Data Services Inc. is ongoing in Louisa County. The legal authority of localities to impose moratoriums under Virginia's Dillon Rule remains under debate.
A proposed $66.8 billion merger between Dominion Energy and Florida's NextEra Energy has heightened concerns about rising utility rates, with Governor Abigail Spanberger formally intervening in the State Corporation Commission's review. A Department of Environmental Quality report found that groundwater supplies in the Coastal Plain aquifer system have virtually no capacity for major new data center withdrawals, prompting calls for a special legislative session.
Virginia Congressman Calls for Data Center Operators to Fund Own Power Infrastructure
Congressman Suhas Subramanyam raised concerns about data center proliferation in Virginia, identifying facilities as potential targets in modern conflicts and calling for enhanced protection measures, according to All Virginia News. He advocated for policy changes through the State Corporation Commission that would mandate data center operators to fund their own power infrastructure rather than shifting costs to local residents and utility bill payers.
Amazon Alters Water Use Plans for Virginia Data Center Campus
Amazon has changed its plans or practices regarding water consumption at its Virginia data center campus, as reported by Maryland Matters. The shift indicates a change in the company's operational strategy for resource management in the region. Additional details on the scope of the changes were not immediately available.
IBEW Highlights Economic Gains for Electrical Workers From Data Centers
Don Slaiman, political coordinator for IBEW Local 26, appeared on Fox Business to discuss data center benefits for blue-collar workers, as reported by Fox Business. Slaiman cited a Georgia Tech study indicating a 5% rise in wages in counties hosting data centers and noted that IBEW membership and work hours have doubled in the last decade due to data center construction.
Slaiman described data center operators including CloudHQ, Equinix, Digital Realty, and Stack Infrastructure as community partners who engage with residents and address concerns. He stated that developers have moved from high to low water usage systems and improved engineering to mitigate sound, and that while data storage increased six-fold over a decade, energy usage rose by only 6% as data migrated to the cloud.
Rep. McGuire Downplays Data Center Community Concerns at House Roundtable
During a House roundtable, Virginia Representative John McGuire stated that modern data centers are "a lot quieter" and can use closed-loop cooling systems that do not impact local water tables, according to Atlanta Black Star. McGuire advocated for nuclear energy and continued fossil fuel use to meet AI and data center power demands, criticizing policies he characterized as "virtue-signaling green ideas" for shutting down coal plants.
McGuire noted that Virginia hosts more data centers than any other U.S. state and framed AI development as a critical race with China. He acknowledged negative press about data centers in his rural district but maintained that technological advancements address many community concerns.
North Port, Florida, Considers Retroactive 18-Month Moratorium on Data Centers
The North Port City Commission is scheduled to hold its first reading today on a proposed 18-month retroactive moratorium on data center and large-load facility applications, according to Spectrum Bay News 9. A second reading and final vote are set for September 8, with an informational workshop planned for September 3 featuring representatives from Florida Power & Light and the Peace River Manasota Regional Water Supply Authority.
The moratorium proposal follows the public release of details about an 896,000-square-foot data center project proposed by North Port 300 LLC, submitted July 20, for the Yorkshire area, as reported by yoursun.com. The application was filed just hours before commissioners first discussed a potential moratorium. The broader 282-acre mixed-use development includes commercial and retail space, multi-family housing, and open space.
Residents led by groups such as the North Port Citizens Action Network have voiced concerns about energy consumption, water usage, environmental impact, and noise pollution, according to ABC7 WWSB. The retroactive nature of the proposed moratorium has raised concerns about potential legal challenges. District 5 Commissioner Phil Stokes suggested that companies with "good intentions" would work with the city during any temporary halt. Sarasota County recently enacted its own data center moratorium.
Automakers Enter Energy Storage Business Amid Data Center Backlash in Michigan
U.S. consumers are increasingly opposing data center developments, with communities across Michigan successfully blocking or delaying projects through public votes and developer withdrawals, according to the Jefferson City News Tribune. Instances include a rejected rezoning vote in Augusta Township and the University of Michigan pausing a supercomputer data center in Ypsilanti Township. Several Michigan municipalities have enacted moratoriums.
Major automakers are simultaneously pivoting into stationary battery energy storage:
- Tesla is supplying Megapacks to data centers for Meta and SpaceX
- Ford Motor Co., through Ford Energy, is retooling a Kentucky plant for stationary storage targeting data centers and utilities
- General Motors, via Ultium Cells LLC and partnerships with Peak Energy and Redwood Materials, is expanding into stationary battery production
Industry analyst Daniel Ives of Wedbush Securities noted that automakers must navigate carefully to avoid becoming entangled in political debates over data center expansion. Glenn Stevens of MICHauto suggested energy storage systems could help mitigate opposition by alleviating grid strain and supporting renewable energy integration.
Michigan Data Center Tax Incentives Shielded From Public Disclosure
Technology companies building data centers in Michigan are able to keep details of their state tax incentives secret, according to The Detroit News. The lack of transparency limits public insight into the economic benefits or costs associated with these incentive packages.
Iron County, Utah, Drafts New Strategic Development Zone for Data Centers
Iron County, Utah, is considering a new ordinance to establish a Strategic Development Zone that would give county commissioners greater discretion over data center and large industrial project approvals, according to St. George News. The proposal would shift such projects from a conditional-use permit process to a legislative zoning process.
The initiative follows controversy over "Project Antelope," a proposed 6.75-million-square-foot data center campus with a 1.5-gigawatt natural gas power plant near Cedar City that was approved despite extensive public opposition. Key provisions of the draft ordinance include:
- Detailed environmental, infrastructure, and community impact studies required earlier in the process
- Mandatory development agreements for approved projects
- Revised regulations for solar power developments
The Iron County Planning Commission is scheduled to discuss the draft on September 3. The county's existing 180-day moratorium on new data center applications remains in effect, with two projects expected to seek approval under the new zone once it expires. BrightNight's Red Butte data center plans remain uncertain, though the company is still pursuing its solar component.
Mona, Utah, Residents Raise Concerns Over Approved Data Center Campus
Residents of Mona, Utah, are expressing concerns about a 3-million-square-foot data center campus planned by Nebo North LLC, which received a Conditional Use Permit from the Juab County Planning Commission on April 15 without prior notice to nearby residents, according to an opinion piece in the Deseret News. Concerns include potential noise, traffic, heat, and light pollution impacts on the small town.
The piece references Texas Governor Greg Abbott's recent order for a statewide pause on new data center projects to study impacts on the power grid, water, and infrastructure, as well as successful opposition efforts in Boerne and San Marcos, Texas.
