Weekly State Rankings — March 23, 2026

#1 Texas

This week's state rankings feature three new entries, a dramatic 13-spot climb by Indiana, and continued regulatory activity across all ten states. Approvals, lawsuits, and community opposition remain the defining themes as local governments work through an unprecedented volume of data center proposals.

Texas rises two spots to claim the top position this week with an A grade, driven by a mix of project approvals, community pushback, and a notable moratorium rejection. In San Marcos, residents successfully pushed back against a proposed data center, with the project ultimately blocked after zoning was denied, as covered by Deceleration. Meanwhile, in Fort Worth, residents organized to question a data center proposal in the western part of the city, though zoning was approved and the process remains ongoing, according to the Fort Worth Star-Telegram. In Fayette County, a proposed moratorium on data centers was rejected, as reported by The Fayette County Record. The rejection of the moratorium, combined with the continued pace of local permitting decisions, keeps Texas at the forefront of data center regulatory activity.

#2 Indiana

Indiana makes the biggest move of the week, vaulting 13 spots to second place with an A grade. The surge is driven by a series of major project approvals concentrated in the Indianapolis metro area. A $4 billion data center project was approved for Decatur Township after zoning was greenlit, as reported by WIBC. Additional approvals came in Marion County along the Rogers Corridor, according to WFIU & WTIU News. Despite the pace of approvals, an opinion piece in IndyStar argued that Indianapolis lacks the tools to stop data centers and called for congressional intervention, noting that moratoriums have been proposed even as projects continue to win zoning and project approval.

#3 Kentucky

Kentucky slips two spots to third but maintains its A grade. In Louisville, a data center project was approved, prompting an opinion column in The Courier-Journal that characterized the vote as prioritizing technology over community concerns. Legal challenges are also in play, with lawsuit proceedings beginning in Simpson Circuit Court over a data center project in Franklin, as reported by WNKY. On the political front, Senate candidate Charles Booker received labor union endorsements and has pledged AI job protections, with a moratorium on data centers proposed in Louisville, according to whas11.com. Kentucky's regulatory environment reflects active approvals alongside growing political and legal resistance.

#4 New Mexico

New Mexico enters the rankings for the first time this week at fourth place with an A grade, propelled by legal and regulatory developments around major projects. A judge allowed a lawsuit over Project Jupiter tax incentives to proceed in Las Cruces, as reported by KVIA. A related open meetings lawsuit in Santa Teresa also advanced after a judge denied Dona Ana County's bid to dismiss the case, according to KFOX. On the regulatory side, Lea County set new regulations for potential data centers, with zoning approved, as reported by the Hobbs News-Sun. The combination of large-scale project scrutiny and proactive local rulemaking makes New Mexico a state to watch.

#5 Alabama

Alabama climbs four spots to fifth place with an A grade. The Birmingham Planning Commission approved new data center rules after public debate, as reported by WBMA. In Stockton, a moratorium has been proposed and remains ongoing amid continued community opposition, with Yellowhammer News reporting that the figure who coined the phrase "America's Amazon" argues the Stockton solar site is not worth the fight. Heatmap News drew a comparison between the Stockton data center opposition and the Occupy Wall Street movement, highlighting the intensity of local organizing. Alabama's rise reflects both the adoption of new zoning frameworks and the level of public engagement around proposed projects.

#6 South Dakota

South Dakota is a new entry this week at sixth place with an A grade. In Brandon, a data center project received zoning approval and remains ongoing, with Agweek reporting on the significant electricity demands the facility could place on local infrastructure. In Sioux Falls, a community group said it has a better plan for the Smithfield site, with zoning being appealed, according to KELOLAND.com. SiouxFalls.Business covered the broader challenges of regionalization as Sioux Falls navigates growing development pressures. South Dakota's debut on the list signals that data center development is reaching into new markets.

#7 Tennessee

Tennessee enters the rankings at seventh place with an A grade. In Chattanooga, the Hamilton County Commission approved a land sale and zoning for a data center project, as reported by the Chattanooga Times Free Press. Along the Mississippi-Tennessee state line near Memphis, a legal and regulatory battle over data centers is heating up, with a lawsuit filed, according to the Memphis Flyer. In Lynchburg, the Metro Council directed its attorney to pursue legal actions related to a solar farm associated with data center development, with zoning still pending, as reported by The Lynchburg Times. Tennessee's entry reflects both active project approvals and emerging legal friction.

#8 Pennsylvania

Pennsylvania drops three spots to eighth but retains its A grade. A major land deal was completed in Salem Township, where 96 landowners finalized a historic 1,700-acre sale for a data center campus, with zoning approved, according to the Times Leader. In northeastern Pennsylvania, data centers in the Hazle Township area could look to "purple pipe" reclaimed water systems for cooling, though a lawsuit has been filed, as reported by the Hazleton Standard Speaker. In Sugarloaf Township, zoning remains pending and a lawsuit has been filed as political transitions continue at the supervisor level, also covered by the Hazleton Standard Speaker. Pennsylvania continues to see large-scale land acquisitions alongside legal challenges.

#9 Virginia

Virginia jumps five spots to ninth place with an A grade. In Chantilly, a board approved a land sale for a data center with zoning greenlit, as reported by Annandale Today. Concerns about noise and pollution near schools in Bristow were raised in a letter to the Prince William Times, even though zoning was approved and the situation remains ongoing. A Northern Virginia park was rated among the top 10 most endangered public lands in the country, with zoning appealed and lawsuits filed in Prince William County, according to Northern Virginia Magazine. Virginia's long-running role as the nation's data center hub continues to generate both approvals and high-profile opposition.

#10 Wisconsin

Wisconsin falls two spots to round out the top 10 with a B grade. In Mount Pleasant, a data center project was blocked, with Virginia Business reporting that Microsoft has vowed to end secret data center agreements with local governments. In Port Washington, the city moved to limit outdoor construction work hours for an approved data center project, as covered by FOX6 News Milwaukee. A separate report from FOX6 News Milwaukee detailed the specifics of those construction limits as the project moves forward. Wisconsin's drop reflects a project blocked in Mount Pleasant, though Port Washington continues to advance its data center with new operational conditions in place.