A Nebraska county just banned new data centers for up to a year. More could follow.

A Nebraska county just banned new data centers for up to a year. More could follow.

News ClipFlatwater Free Press·Nebraska City, Otoe County, NE·5/22/2026

Otoe County, Nebraska, has enacted a temporary ban on new data center permits for up to a year, driven by resident concerns over water and electricity usage. This decision allows county officials time to study potential impacts and update regulations, reflecting a broader trend of growing data center opposition across the country. Other Nebraska counties like Madison and Gage are also considering or implementing similar measures and regulations.

moratoriumelectricitywateroppositiongovernmentzoning
Google
Gov: Otoe County Board, Gage County planning and zoning commission, Nebraska Association of County Officials, Nebraska lawmakers, Gov. Jim Pillen, Madison County commissioner

The Otoe County Board in Nebraska City, Nebraska, has voted to suspend permits for new data centers for up to a year, a move intended to give county officials time to study the industry's impacts and update regulations. This decision follows significant resident opposition, led by figures like Wynee Benedict, who raised concerns about water and electricity consumption and potential "heat island" effects. The action in Otoe County is part of a growing national trend, with other local governments from California to Maine considering or adopting similar temporary bans.

Elsewhere in Nebraska, Madison County recently implemented special permit requirements for data centers to enhance oversight, while Gage County's planning and zoning commission is set to hold a hearing on a data center moratorium in June. These local responses are partly influenced by a new state law championed by Gov. Jim Pillen, which allows for private power generation for large industrial customers, though this law could inadvertently prompt more counties to enact moratoriums as they work to update their regulations.

The article highlights that residents in southeast Nebraska, including Otoe and Gage counties, are reacting to a potential Google data center project. This project, which could be powered by a private natural gas plant developed by Tenaska, has raised alarms due to its projected electricity demand, potentially triple that of Lincoln during peak months, and significant water usage. Local meetings, such as one in Adams (Gage County), have seen residents strategizing on how to voice their concerns, particularly regarding water resources.

While some residents, like Jim Nemec, expressed concerns about sending a negative message to businesses, the majority support the moratorium for further study. The issue of energy demand is also prominent in Virginia, the largest data center market, where utility companies have postponed connections due to insufficient power infrastructure. Nebraska lawmakers have also passed a transparency bill requiring data centers to report their ownership, size, and resource usage, which is expected to aid local officials in developing future regulations.