Daily Digest — September 3, 2026
Pennsylvania's Middlesex Township Approves PAX-1 Data Center Despite Intense Opposition
Middlesex Township supervisors in Cumberland County, Pennsylvania, voted 2-0 to approve all agenda items related to the PAX-1 and PAX-2 data center developments, according to multiple local news outlets including WHTM, CBS 21, local21news.com, and WGAL. The first phase clears the way for six new data center buildings, part of a proposed 16-building complex described as the largest data center project put forward in the state. The vote was carried by only two supervisors following a recent resignation, requiring a unanimous decision.
The meeting, held at Cumberland Valley High School's 1,600-seat auditorium, drew nearly four hours of public comment, with the overwhelming majority of attendees expressing opposition. Residents cited concerns about noise from ongoing substation construction, environmental impacts on wildlife, and health effects. After the vote, attendees chanted "shame," as reported by WGAL. A minority of speakers, including plumbers, pipefitters, and iron workers union members, supported the project for the construction jobs it would bring.
Supervisors stated their decision was based on whether the land development plan met legal requirements, not personal preference. Alongside the approval, the board passed:
- A Community Benefits Agreement requiring the developer to pay $14 million to the township
- A side letter mandating noise monitoring, water quality testing, and emissions testing
The project's future remains uncertain on multiple fronts. A Cumberland County judge has preliminarily indicated willingness to hear an appeal that could halt construction, according to WHTM. Governor Josh Shapiro's recent executive order imposing new restrictions on data center development statewide may also affect the project, though its specific impact is not yet known.
Middlesex Twp. supervisors approve PAX-1 data center development matters
WHTM - abc27 News
PA township approves first phase of controversial data center project
CBS 21 News
Middlesex Township approves first phase of 16-building data center project
local21news.com
Middlesex Township approves all agenda items related to PAX-1 data center
wgaltv
Township expected to vote on approving PA data center complex after postponing twice
local21news.com
Grayslake, Illinois Issues Building Permit for T5 Data Center Campus Despite Lawsuit
The Village of Grayslake, Illinois, has issued a building permit for the first phase of a data center campus developed by Atlanta-based T5, according to the Chicago Tribune. The initial building spans 800,000 square feet, part of a planned 472-acre development that could include up to 18 data center buildings totaling 10.1 million square feet, representing an expected $18 billion private investment.
Village officials describe the project as potentially the largest economic investment in Lake County history, anticipating:
- $1.4 billion in property tax revenue over 20 years for local taxing bodies
- No municipal tax incentives required
The project faces a lawsuit from opponents alleging that approval hearings were inadequate and violated Open Meetings Act rules. The village has responded with a motion to dismiss. Opponents have regularly attended board meetings and organized protests, raising concerns about the campus's power and water consumption. An eight-month halt on data center applications in unincorporated Lake County is also expected. Local school districts have been proactively coordinating with developers regarding the project's implications.
Bay Area Backlash Drives Multiple Cities to Impose Data Center Moratoria; California Legislature Sends Bills to Governor
A broad political backlash against data center development is sweeping the Bay Area, with at least six cities imposing temporary moratoria, committing to public hearings, or rewriting development codes, according to The Mercury News. Monterey Park became the first U.S. city to permanently ban data centers via a ballot measure. The backlash was catalyzed in part by a 438,500-square-foot Amazon data center in Gilroy that was approved under old rules without extensive public hearings.
Concerns center on electricity and water consumption, noise, and transparency. PG&E projects a doubling of electricity demand in its service area over 20 years, with data centers accounting for a third, as reported by The Mercury News.
Separately, the California Legislature has passed seven data center-related bills and sent them to Governor Gavin Newsom, as reported by ABC7 Bay Area. Assemblymembers Diane Papan and Rebecca Bauer-Kahan spearheaded the legislation, which focuses on:
- Mandatory disclosure of projected and actual water usage
- Energy demand and efficiency reporting
- Local community impact assessments, including noise
The Data Center Coalition, an industry group representing companies including Google, Meta, Amazon, and Microsoft, opposes the legislation, arguing data centers are being unfairly singled out. Governor Newsom has until September 30 to act on the bills. He previously vetoed similar measures.
California Passes Bills Requiring Data Centers to Pay Own Electricity Costs
California lawmakers approved two bills directing the California Public Utilities Commission to establish separate rate structures and connection rules for large data centers by July 2027, according to SierraDailyNews.com. The legislation is designed to prevent ordinary ratepayers from subsidizing power generation and grid infrastructure upgrades necessitated by data center expansion.
Senator Steve Padilla, a key proponent, stated the bills hold "Big Tech" accountable for community impacts. The Little Hoover Commission and advocacy groups including The Utility Reform Network and the Union of Concerned Scientists supported the measures, citing potential transmission upgrade costs of up to $1.8 billion in PG&E's service area if data centers do not cover grid-integration expenses.
Google and Microsoft, represented by the Data Center Coalition, opposed the measures, arguing they unfairly target data centers. Early drafts had included stricter requirements for on-site batteries and 100% carbon-free power by 2030, but these were removed during negotiations. Governor Newsom has signaled support for the bills.
Two letters to the editor in the Los Angeles Times also addressed data center regulation, with one advocating for noise setback requirements and another endorsing the effort to prevent ratepayer subsidies for data center electricity.
California's Proposition 45 Could Affect Rural Data Center Development
Opponents of Proposition 45 are warning that the measure, if passed, could facilitate or streamline data center development in rural areas, according to the Daily Journal. The concern centers on potential impacts to land use and development patterns for data center projects in rural communities.
Data Centers Become Midterm Election Flashpoint in Arizona and Nationally
Data centers have emerged as a bipartisan political issue in midterm elections, with a Gallup poll showing over 70% of Americans do not want data centers in their areas, according to azfamily.com. Politico's analysis of more than 100 campaign ads found all portrayed data centers negatively, spanning races in Ohio, Michigan, and Pennsylvania.
In Arizona:
- Attorney General Kris Mayes called for a one-year moratorium on data center construction, though political consultants note she lacks unilateral authority to impose one
- Governor Katie Hobbs declined to endorse a construction pause but confirmed her administration has secured a three-year moratorium on data center tax credits and is exploring policies to eliminate these credits permanently
- Senate President Warren Petersen, challenging Mayes, touted the existing tax credit moratorium but declined to support a construction pause
In Pennsylvania, Governor Shapiro signed an executive order restricting "predatory data center projects," with both he and Republican challenger Stacey Garrity running ads on the issue, as reported by azfamily.com.
Arizona Chamber of Commerce Pushes Back on Moratorium Calls With "Offline Pledge"
The Arizona Chamber of Commerce and Industry launched a tongue-in-cheek "Arizona Offline Pledge" in response to Attorney General Kris Mayes' call for a data center development ban, as reported by KJZZ, FOX 10 Phoenix, and State Affairs. The pledge dares opponents to forgo social media, AI, and online banking.
Courtney Coolidge, the Chamber's executive vice president, acknowledged concerns regarding water, energy, and siting but argued the solution should be problem-solving rather than halting development. She cited the following figures:
- Power generation, data centers, and industrial users account for about 7% of Arizona's water supply
- Data centers contribute 87,000 direct and indirect jobs statewide
- Over $1 billion in state and local tax revenue
- Arizona already has over 160 data centers
Public polling from Noble Predictive Insights shows over half of Arizona's registered voters oppose new large-scale data center construction. The Arizona Corporation Commission has implemented policies requiring large energy users to pay for their own infrastructure upgrades, according to FOX 10 Phoenix.
Illinois Commentary: Planning Frameworks for Responsible Data Center Siting
Two commentaries published in the Jacksonville Journal-Courier address data center development best practices. Robert Mayo of the Challey Institute at North Dakota State University argues that successful development depends on meticulous planning and community engagement, contrasting Quincy, Washington's positive property tax outcomes with communities that have revoked incentives.
Mayo highlights four critical areas: electricity rates, noise, water usage, and community engagement. He notes that newer closed-loop cooling systems use less water than older evaporative systems, and that proper siting can mitigate noise complaints.
In a separate commentary, Morgan County Commissioner Michael D. Woods proposes a "4R" framework for data center siting:
- **Right place:** Prioritize brownfields over productive farmland
- **Right resources:** Ensure adequate water, energy, and grid capacity
- **Right scale:** Match project size with community infrastructure
- **Right relationship:** Ensure transparency, public participation, and fair distribution of benefits
Woods identifies potential Illinois sites including East St. Louis, Chicago's South Side, and a former developmental center in Jacksonville.
