Daily Digest — September 4, 2026
Ohio Supreme Court Orders Data Center Ban Vote in Trenton
The Ohio Supreme Court has unanimously ordered the city of Trenton, Ohio, to place a citizen-led ballot initiative banning large data centers before voters, according to Spectrum News and LOCAL 12. The ruling resolves a dispute between residents who gathered approximately 300 signatures and the Trenton City Council, which had argued the petition lacked sufficient signatures. The city is now responsible for scheduling the special election.
The ballot measure stems from over a year of advocacy by a local group called WATER (Woodsdale and Trenton Environmental Resistance), whose members have cited concerns about aquifer depletion and contamination, increased electricity costs, and property value impacts. If the ban passes, it would prevent construction of future data centers and block plans for a second facility, though the implications for a data center already under construction remain unclear, per Spectrum News.
Separately, as reported by WKRC, the city's efforts to attract an Amazon data center are further complicated by an unresolved annexation dispute. Trenton is attempting to annex 601 acres from St. Clair and Madison townships, both of which have rejected the proposal. City officials presented financial offers made by the city and Amazon to the townships, but those failed to resolve disagreements. Mayor Ryan Perry (R) noted that without annexation, the city would lose its ability to influence the project's development. WCPO 9 also reported the city has approved the vote.
Trenton, Ohio, Voters to Decide Data Center Ban Amid Annexation Dispute
WKRC
Data center ban will go before voters after Ohio Supreme Court ruling
Spectrum News
High court says data center ban must go to ballot
LOCAL 12
Voters in Ohio city to decide data center ban as annexation dispute remains unresolved
LOCAL 12
City of Trenton approves data center ban vote
WCPO 9
Republican Politics Shift on Data Centers as Texas Governor Defends Moratorium
Republicans in several states are adopting tougher stances on data center development in response to growing public opposition, according to StratNews Global. Texas Governor Greg Abbott, who less than a year ago promoted the state as an AI development hub, is now campaigning for re-election while advocating for new restrictions, the repeal of tax incentives, and limits on rural development. An August audit has effectively paused new grid connection approvals.
In interviews with Fox Business, Abbott defended the moratorium, outlining conditions data centers must meet:
- No depletion of local water resources
- No excessive electricity draw from the power grid
- Operations must reduce electricity costs for nearby customers
- No disruption to local neighborhoods or rural settings
Abbott stated the measures respond to concerns from East Texas residents who experienced disruptions from data center developments. He dismissed concerns that the moratorium could cause the U.S. to fall behind China in AI development, calling it an "American issue."
Texas Attorney General Ken Paxton, in a close Senate race, has also unveiled a plan to mitigate "negative impact of data centers," reversing prior support for industry tax incentives, per StratNews Global. A Texas Politics Project poll found only 30% support for data centers in local communities. Super PACs tied to Anthropic and Meta have spent millions in Texas in response.
Texas Senate Hearing Exposes Data Center Water Reporting Gaps
The Texas Senate Committee on Water, Agriculture, and Rural Affairs held an interim hearing examining data center water usage and transparency, as reported by The Texan and Spectrum News. Testimony from the Texas Water Development Board and the Public Utility Commission revealed low response rates to surveys collecting water and energy usage data from data center operators.
Chairman Charles Perry (R-Lubbock) singled out Beacon Data Centers as a "bad actor" for operating in secrecy regarding its Westline Energy Infrastructure Campus and threatened legislative action. State Senator Lois Kolkhorst (R-Brenham) expressed concern that many facilities were not complying with legal reporting requirements.
Google, which operates two data centers in North Texas that used nearly 330 million gallons of water in 2025, testified it has submitted usage metrics to the state, per Spectrum News. The company highlighted its goal to replenish more freshwater than it consumes by 2030 and a $20 million Texas investment in water-saving practices. Senator Perry expressed strong opposition to evaporative cooling systems and vowed to prohibit them in the next legislative session. Google noted plans to use air-cooling in upcoming facilities.
Key developments:
- Governor Abbott's August directive paused future data center construction until water and energy data is collected
- Lawmakers anticipate hundreds of bills addressing data center energy and water usage in the session starting early November
- Local officials, such as Caldwell County Judge Hoppy Haden, testified they often learn of data center projects only after private land sales have occurred
Effingham County Residents Sue Over OpenAI Data Center Zoning
Three Effingham County, Georgia, residents have filed a lawsuit in Superior Court challenging the county's zoning process related to OpenAI's proposed $20 billion data center campus, Project Camellia, according to WJCL and Georgia Public Broadcasting. The plaintiffs allege county officials failed to follow proper procedures when amending zoning rules, acted with conflicts of interest, and held private meetings. They clarify they are not inherently opposed to AI data centers.
Project details, as reported by WJCL:
- Over 1,400 acres at the Savannah Gateway Industrial Hub
- Estimated 3,200 megawatts of electricity required
- Construction slated to begin in 2028
- 400 permanent jobs initially, over 1,000 upon completion
- $80 million in committed community benefits
- OpenAI to cover electrical infrastructure costs and use closed-loop cooling
County Commissioner Phil Kieffer previously noted that commissioners had not voted on the project because the property was already zoned for industrial uses. State utility regulators have approved the electricity contract between OpenAI and Georgia Power, but this does not constitute full development approval. The lawsuit, described by GPB as the first formal legal challenge to the county's agreement with OpenAI, could affect the site-plan approval process still required for the development.
Effingham County Sued Over Zoning Process for OpenAI Data Center
WJCL
Effingham residents sue county over zoning ordinance that allowed data center
WSAV-TV
Residents sue Effingham County over illegal zoning practices and secret dealmaking with OpenAI
Georgia Public Broadcasting
Effingham residents challenge zoning ordinance in lawsuit
WSAV-TV
Effingham County residents sue county over data center zoning ordinance, demand transparency
WTOC
Shadowbox Studios Appeals DeKalb County Data Center Denial, Files Lawsuit
Shadowbox Studios is appealing DeKalb County, Georgia's denial of its proposed 155-acre data center project in south DeKalb and has filed a separate lawsuit challenging the county's data center moratorium, according to Decaturish. The company claims the county previously provided written assurances that a data center was permitted on the property, establishing a "vested right" to proceed. The DeKalb County Zoning Board of Appeals is scheduled to hear the appeal on September 9.
The developer describes the project as a $42 billion investment over 20 years, projecting $133 million annually in local tax revenue, over 9,000 construction jobs, and 275 permanent positions. The company's consultants detailed a closed-loop water cooling system using 2,800 gallons per day and plans for noise mitigation. However, residents have raised concerns over electricity strain, water system burden, and increased pollution. The project represents a pivot from Shadowbox's original film studio expansion plan, which had secured a $68 million incentive package from Decide DeKalb.
DeKalb County's moratorium on data center applications was first approved in July 2025 and recently extended through March 2027.
Tyler Zoning Board Rejects Cryptocurrency Data Center Appeal on Procedural Grounds
The Tyler, Texas, Zoning Board of Adjustment unanimously voted to decline jurisdiction over an appeal filed by Barrio Resources LLC for a proposed cryptocurrency mining data center in downtown Tyler, according to KLTV. The board cited a missed deadline — the appeal was filed 364 days after the required 20-day window under state law, far exceeding the filing period.
The appeal challenged a June 2025 zoning classification requiring a special use permit for the facility at 1101 and 1105 West Erwin Street. Barrio Resources' attorney argued the developer received conflicting guidance from the city, referencing a July 2025 email from a planning technician stating a special permit would not be required. Planning and Zoning Director Kyle Kingma countered that he had directly informed the project representative of the permit requirement in June 2025.
The project is not entirely halted. Barrio Resources retains a 10-day window to appeal the jurisdictional decision to state courts and has a separate, timely appeal pending that challenges the Planning and Zoning Commission's July denial of its special use permit, which could elevate the decision to the Tyler City Council.
