Daily Digest — September 1, 2026
Oklahoma City Condemns Bitcoin Mining Facility After 3-Million-Gallon Water Leak
The City of El Reno, Oklahoma, has condemned a data center operated by Athlon Blockchain LLC (also referred to as Athlon BT) after a water line failure at the facility leaked more than 3 million gallons, forcing local schools, businesses, and government offices to close for two days, according to KOCO.
City officials stated that a Stop Work Order was originally issued to the facility in June 2023 for multiple fire and life safety code violations and expired building and electrical permits. The property owner was given until the end of 2023 to secure new permits and instructed to cease construction until a certificate of occupancy was obtained. Officials now believe the facility continued construction and began operations without that certificate, as reported by KOCO 5 News.
The leak was traced to a privately owned fire hydrant on the property. Investigators also uncovered drainage issues and additional code violations, according to KSDK News and ABC12. The company's website indicates it specializes in mobile data centers for AI storage and Bitcoin mining housed in shipping containers.
The city confirmed residents will not bear the financial burden of the water loss and stated its legal team is preparing action to recoup all costs from the property owner. El Reno is also reviewing internal processes to prevent similar incidents, per WAOW.
City of El Reno condemns Bitcoin mining facility after massive water leak, citing safety violations
KOCO
El Reno condemns data center as officials say it was never supposed to open
KOCO 5 News
Data center 3 million gallon water leak
KSDK News
Hydrant At Data Center Causes 3-Million-Gallon Leak
ABC12
Schools Close After Data Center Leak Wastes 3M Gallons in Oklahoma
WAOW
Trump Defends Data Centers as Political Divide Deepens Ahead of Michigan Speech
Former President Donald Trump publicly criticized data center opposition in a Truth Social post on August 31, calling the facilities a "Golden Goose" and stating that communities rejecting them risk becoming "backwards and poor," according to The Detroit News. The statement came hours before JD Vance was scheduled to speak in Michigan.
Trump's position contrasts sharply with a growing number of Republican figures. Former Rep. Mike Rogers, the GOP U.S. Senate candidate in Michigan, called for a one-year moratorium on new data center developments on August 20, citing concerns about community control, utility prices, and water resources. Michigan Republican Party Chairman Jim Runestad organized a rally in June advocating a temporary moratorium. Ohio Senator Jon Husted has introduced legislation to mitigate data center energy costs to residents, as reported by WBMA.
The issue has become a factor in the November midterm elections, with candidates in at least 21 races across 18 states addressing data center development in campaign ads, according to Free Malaysia Today. Democratic Senate candidate Abdul El-Sayed and Democratic gubernatorial candidate Jocelyn Benson have also called for moratoriums or stronger accountability measures.
Vice President Vance offered a more measured take during his Michigan stop, suggesting that data center backlash is primarily driven by situations where construction leads to increased utility costs and that facilities should ideally contribute power back to the grid, per Free Malaysia Today. The White House used the visit to highlight a joint $7 billion-plus investment by OpenAI, Oracle, and Related Digital in a Michigan hyperscale campus.
Michigan currently hosts 79 operational data centers with over a dozen more under construction or in planning, including hyperscale projects for Oracle and OpenAI in Saline Township and Google in Van Buren Township, according to Metro Detroit News.
Trump targets data center opposition ahead of Vance's Michigan speech
The Detroit News
Trump pushes back against data center rejection: 'Let Data Reign'
WBMA
Trump says AI data centre opponents want to be ‘backwards and poor’
Free Malaysia Today
Trump Defends Data Centers, Says Communities Opposing Them Risk Becoming “Backwards and Poor”
Metro Detroit News
Trump targets data center opposition ahead of Vance’s Michigan speech
Virginia Business
Arizona Attorney General Calls for Statewide Pause on Data Center Approvals
Arizona Attorney General Kris Mayes called on state lawmakers and Governor Katie Hobbs to enact a statewide moratorium on new data center approvals in an August 31 press release, according to Copper Courier.
Mayes cited several resource concerns:
- Arizona's Colorado River water allocation has been reduced by nearly 30%
- A Ceres analysis projects a 450% surge in data center-related water demand if all planned Phoenix-area projects proceed
- An Arizona State University study indicates even air-cooled data centers could raise local temperatures by up to 4 degrees
- Proposed rate increases by Arizona Public Service Co. and Tucson Electric Power Co. are linked to growing data center infrastructure needs
The Attorney General referenced a recent instance in Pinal County where the Board of Supervisors rejected a data center rezoning request after community opposition, as reported by AZ Family. Mayes also announced plans to hold an October 14 town hall in Ahwatukee to address concerns about a planned Menlo Digital hyperscale project in that area, according to News 4 Tucson.
This call follows Governor Hobbs' earlier signing of a state budget that included a three-year pause on data center tax incentives, per Copper Courier.
AG Mayes calls for data center halt
Copper Courier
AG Mayes calls for statewide pause on new data center construction
AZ Family
Mayes calls for Arizona data center pause amid energy costs, water concerns
News 4 Tucson KVOA-TV
Arizona Attorney General urges data center pause amid pushback
The Business Journals
Kris Mayes calls for no new AI data centers as Arizona faces water, power crunch
Tucson Sentinel
Virginia Faces Mounting Data Center Opposition and Regulatory Shifts
Public resistance to data center development is intensifying across Virginia, driving policy changes at both the local and state levels, according to Virginia Business.
Key developments reported include:
- Balico withdrew its $8.85 billion data center rezoning application in Pittsylvania County
- A circuit court judge invalidated the Prince William Digital Gateway complex, leading developers to abandon the project
- A new power usage tax of up to $600 million annually was enacted for heavy electric users including data centers
- Governor Spanberger's administration has initiated efforts to require large electricity users to pay upfront for infrastructure, with the Virginia State Corporation Commission ordering Dominion Energy to draft a policy
Several localities have enacted or are pursuing restrictions:
- Chesapeake City Council approved an eight-month moratorium on data center applications
- Virginia Beach directed staff to draft a prohibition ordinance
- Loudoun County ended by-right data center development, now requiring special exception permits
Meanwhile, the Stafford County Planning Commission has recommended approval for the Akake data center project, which would be the county's sixth, according to FOX 5 Washington DC. The project by developer Felmouth Tech includes up to 590,000 square feet across two buildings and an electrical substation. Residents near the site are voicing concerns about noise, pollution, and unreliable electricity, with some reportedly selling their homes. The Stafford County Board of Supervisors is expected to make a final decision by December.
Allentown Zoning Challenge Over Data Center Classification Postponed
A zoning hearing board proceeding in Allentown, Pennsylvania, concerning the classification of data centers has been postponed after both parties mutually agreed to defer, according to The Morning Call.
Philadelphia-based Quantm LLC plans to convert a 224,000-square-foot warehouse at 2401 W. Emmaus Ave. into a data center. The city had previously determined that a data center constitutes a "permitted-by-right" use in the I-3 zoning district, classifying it as equivalent to manufacturing. The project is currently awaiting a vote from the city's planning commission.
Camelot for Children, a nonprofit located near the proposed site, filed a formal legal appeal on July 6 through attorney Kevin Fogerty, arguing a "gross disparity" between data center and manufacturing uses, as reported by The Morning Call. Fogerty asserts that data centers do not involve processing raw products or creating finished goods and points to Allentown's recently enacted data center ordinance as evidence that the city itself recognizes data centers as distinct from manufacturing. A new hearing date has not been announced.
