Heartland Communities Protest Data Centers, Lawmakers Consider Regulation
Communities across the Midwest and South are increasingly opposing large-scale data center developments due to concerns over water and energy usage, noise, and rural landscape changes. In response, local and state governments are implementing moratoria, reconsidering tax incentives, and proposing new regulations. This article highlights several examples of local pushback and legislative efforts in various states.
Across the Midwest and South, communities are actively pushing back against the rapid expansion of large-scale data center developments, primarily citing concerns over their extensive water and energy consumption, noise pollution, and impact on rural landscapes. In Champaign County, Illinois, over 100 residents successfully advocated for a one-year moratorium on data center development, which the County Board unanimously passed in April to allow time for new zoning standards to be created. A sixth-grade student, Samuel Tomory, voiced specific concerns about the Mahomet Aquifer's water supply.
Similar moratoria have been enacted in Hill County, Texas; Manitowoc County, Wisconsin; and Huron County, Michigan. However, not all efforts to block projects have succeeded; in Sangamon County, Illinois, a controversial $500 million data center was approved despite public opposition, leading to a petition to recall county board leadership. In Festus, Missouri, a city council that approved a $6 billion data center deal saw half its members voted out, and residents are now seeking to remove the mayor and remaining council members, while newly-elected council members work on water usage ordinances.
State lawmakers are also responding, with Missouri passing a law to raise rates for large energy users and Ohio Governor Mike DeWine pausing state data center tax exemptions. Illinois Governor JB Pritzker also implemented a two-year pause on new data center tax credits after the legislature failed to act, and is calling for comprehensive reforms including efficiency requirements and clean energy mandates. While Michigan is considering repealing its data center incentives, Governor Gretchen Whitmer continues to support data centers if developed responsibly. Federal legislation to pause development has been introduced but is unlikely to pass, indicating that most decisions will remain at the local and state levels, leading to a varied regulatory landscape.