Daily Digest — September 2, 2026
Trump Clashes With Texas Voters Over Data Center Opposition
Former President Donald Trump drew criticism for calling Texans who oppose data center construction "backwards and poor," according to the Houston Chronicle. Texas Politics Project polling shows 57% of Texans, and 60% of rural voters, oppose data centers in their communities.
Trump reiterated his support on social media, urging communities to "let Data Reign" and warning that opposition benefits China in the global AI race, as reported by ABC13 Houston. He also criticized Gov. Greg Abbott's recent decision to pause new data center projects for compliance checks. Vice President JD Vance acknowledged public backlash, attributing it to concerns over higher utility bills, and proposed that data center companies build their own power plants.
Democratic gubernatorial candidate Gina Hinojosa has advocated for a complete moratorium on data centers statewide. Attorney General Ken Paxton has not yet provided guidance to rural counties on halting local construction. A Native News Online analysis noted that Gallup polling shows over 70% of Americans oppose AI data centers in their vicinity, and highlighted NV Energy's decision to cease providing electricity to nearly 50,000 Lake Tahoe residents by 2027, redirecting power to data centers in northern Nevada.
Texas Freezes New Data Center Grid Connections Amid "Ghost Demand" Surge
Texas has become the first major U.S. data center hub to freeze new grid connections for data centers, according to CNA and Vision Times. Data center connection requests to ERCOT have surged from 48 gigawatts in 2023 to over 474 gigawatts — more than five times the state's record peak demand.
The freeze is driven by concerns over "ghost demand" — speculative or duplicated projects in utility connection queues unlikely to be built. Gov. Abbott's August 3 order mandates a comprehensive audit requiring data center proposals to:
- Reveal ultimate ownership
- Detail taxpayer-funded incentives
- Disclose water use and on-site power generation plans
- Provide verifiable information confirming project legitimacy
Non-compliant projects face denial of grid access. ERCOT has also shifted from individual project evaluation to a "Batch Zero" system for collectively examining major electricity users.
Other states and utilities are adopting similar measures. Pennsylvania Gov. Josh Shapiro signed an executive order implementing stricter permitting for projects over 25 megawatts. AEP Ohio's data center pipeline dropped significantly after adopting rules including connection-study fees up to $100,000. Exelon reduced its high-probability data center demand forecast by approximately 40% after implementing tougher collateral requirements. PJM Interconnection has reported a $29.4 billion increase in capacity costs attributed to data center demand.
Texas Senators Target Data Center Water Regulations for 2027 Session
Texas senators plan to introduce legislation in the 2027 session to tighten water regulations for data centers, according to Community Impact. State Sen. Charles Perry (R-Lubbock), chair of the Senate Water, Agriculture and Rural Affairs Committee, announced plans for a standalone bill implementing "reasonable, responsible regulatory frameworks" for data center water consumption.
During a September 1 hearing, Sen. Perry publicly criticized data center developer Beacon as a "bad actor" for lack of communication and secrecy, vowing to take action to prevent their projects. State agencies including the Texas Water Development Board and the PUC reported difficulties tracking water usage, noting developers are not legally compelled to complete surveys.
Representatives from Google, Lancium, and QTS testified about their commitment to responsible water use. Google stated all planned Texas data centers would use closed-loop cooling systems to eliminate freshwater consumption for cooling. PUC data showed that while only 15 of 102 surveyed operational facilities use evaporative cooling, these account for nearly half of total reported water intake. Nearly all planned facilities are expected to adopt non-evaporative methods.
Memphis City Council Unanimously Advances Data Center Moratorium
The Memphis City Council unanimously passed the second reading of an ordinance that would impose a one-year moratorium on data center development, as reported by Action News 5. The vote took place on "901 Day," a local celebration of Memphis. A third and final vote is required for the ordinance to become law.
The moratorium, spearheaded by Council member Jerri Green, would halt the issuance of building permits and site plans for new data centers but would not affect existing facilities such as SpaceXAI's Colossus 1 and 2, according to ABC24 Memphis. The Daily Memphian reported that two council members proposed alternative regulatory frameworks, while others used procedural tactics to delay those alternatives.
Rep. Justin Pearson and various advocacy groups have publicly supported the moratorium, according to the Commercial Appeal. Kermit Moore, president of the NAACP Memphis Branch, drew parallels to past civil rights struggles. Activists cited environmental justice concerns related to the SpaceXAI data center as a source of pollution in already burdened communities.
Activists celebrate progress of Memphis’ data center regulation efforts on 901 Day
Action News 5
Memphis City Council meeting to temporarily pause data center development in the Mid-South
ABC24 Memphis
Fight about data center pause builds at City Hall
Daily Memphian
Rep. Justin Pearson, various advocacy groups speak in favor of a proposed data center moratorium in Memphis
The Commercial Appeal
EPA Considers Eliminating Public Comment Requirements for Air Pollution Permits
The EPA is considering a proposal to eliminate federal requirements for public notice and comment periods on air pollution permits for new industrial facilities, including data centers, according to Word In Black. Attorney Keri Powell of the Southern Environmental Law Center argued the change would hinder communities' ability to challenge new pollution sources.
The proposal would overhaul a 50-year-old rule requiring public notice and a 30-day comment period for minor polluters, allowing local and state agencies to set pollution standards and issue permits without public input. An EPA spokesperson stated the change is intended to "responsibly speed up permitting" and does not alter emission standards.
The article highlighted two examples: SpaceXAI's Colossus data center in Boxtown, a historically Black Memphis neighborhood using nearly 70 gas-powered turbines initially installed without permits, and Project Marvel, a data center planned for Bessemer, Alabama. A MediaJustice report noted the South is a hub for data center development, with a significant portion of the nation's Black population residing there.
Prosper Planning Commission Unanimously Rejects $580 Million Data Center
The Prosper Planning and Zoning Commission voted 7-0 to recommend denial of Project Tomahawk, a proposed $580 million data center, according to Community Impact. Developer White Rose Partners sought to rezone 37.3 acres near FM 1385 and Parvin Road from agricultural use to a planned development.
Residents opposed the project for over an hour at the hearing, citing concerns about noise, power consumption, water usage, and perceived lack of transparency from developers, as reported by WFAA. Mayor David Bristol spoke against the project as a private citizen. Advocacy group Prosper Residents for Responsible Land Use gathered over 1,600 petition signatures.
The proposed 225,000-square-foot facility would have utilized a closed-loop water system with a 65-decibel noise limit, projecting 20-50 permanent jobs and up to $2.5 million in annual revenue. Commissioners noted many details, including tenant information and exact power needs, remained undetermined. The project proceeds to the Prosper Town Council for a final vote on September 8.
Prosper commission recommends denial of $580 million data center
Community Impact
Prosper neighbors raise concerns over proposed Project Tomahawk data center
WFAA
Prosper data center proposal draws concerns from residents in surrounding communities
WFAA
Prosper Planning and Zoning Commission unanimously denies controversial data center rezoning request
WFAA
Residents voice concerns ahead of Prosper data center zoning meeting
WFAA
Interior Department Halts Boulder City Data Center on Federal Land
The Interior Department's Board of Land Appeals has issued a stay pausing BLM's authorization for the Townsite Solar 2 data center project near Boulder City, Nevada, according to KTNV. Administrative Judge David Gunter found BLM acted arbitrarily by deeming the data center project "substantially the same" as a previously approved solar plant for environmental review purposes.
Townsite Solar 2 LLC originally secured a right-of-way in 2023 to build a solar power plant, with an environmental assessment conducted under NEPA. After withdrawing an earlier data center application due to public backlash, the company sought to modify its existing right-of-way for a data center and a battery storage system twice the size of the original plant, as reported by 8 News Now and KSNV.
Boulder City officials and environmental groups including the Center for Biological Diversity challenged the approval. The Board cited likely "permanent and irreparable harm" to aesthetic and recreational interests, ruling that public interest requires a thorough environmental review. Patrick Donnelly of the Center for Biological Diversity stated the data center has been "stopped dead in its tracks." The Board is expediting the appeal process.
Interior Department pauses BLM's plans for proposed Boulder City data center
ktnv.com
Data center plan halted in Boulder City
8 News Now — Las Vegas
Boulder City data center halted temporarily as stay issued; new review possible
8 News Now — Las Vegas
Judge pauses data center development on federal land in Boulder City
KSNV
Ohio Supreme Court Orders Trenton Data Center Ban Vote
The Ohio Supreme Court has ordered Trenton to allow residents to vote on a proposed charter amendment banning data centers exceeding 25 megawatts, according to WCPO 9 and Court News Ohio. The unanimous ruling found the city council improperly rejected a citizen-led petition by the Woodsdale and Trenton Environmental Resistance (WATER) group.
Residents submitted 336 valid signatures, exceeding the 128 required under the Ohio Constitution's Section 14 of Article XVIII, which bases the threshold on votes cast in the last municipal election. The city council had claimed 820 signatures were needed based on registered voters. The court ruled the council "disregarded applicable law," as reported by WVXU.
The court clarified that Trenton is not required to place the amendment on the November 3 general election ballot but must call a special election within 60 to 120 days after certifying the signatures. Trenton Data Center Campus, a construction company with a project in Trenton, intervened in the case. State Affairs reported that residents in Wilmington, Ohio, are pursuing a similar initiative, following the court's order last month directing Ashville to submit a similar petition.
Trenton to vote on data center ban after Ohio Supreme Court decision
WCPO 9 News
Trenton Must Place Data-Center-Ban Amendment on Special Election Ballot
Court News Ohio (.gov)
Ohio Supreme Court rules Trenton must allow vote on data center ban
91.7 WVXU
Ohio Supreme Court orders Trenton data center vote
State Affairs