Data center activity in Rhode Island
The South Kingstown Town Council is considering an ordinance that would ban dedicated data centers townwide and require special approval for any proposed facility. The proposal cites data centers' heavy electricity and water use and is headed for a public hearing before a council vote.
The Hopkinton Town Council unanimously approved an amendment prohibiting data centers in every zoning district. The 5-0 vote followed a public hearing where residents raised concerns about energy use, water consumption, noise, wildlife and environmental impacts, while one resident urged strict regulation instead of an outright ban.
North Smithfield officials said a proposed zoning amendment for the Route 146 tax increment financing district would prohibit data centers in every town zoning district. Residents disputed that characterization, pointing to a consultant's market analysis that they said references potential data center sites and raising concerns about water use. No vote was taken, and the issue is expected to return to the Town Council.
The Hopkinton Town Council adopted an ordinance prohibiting data centers in every zoning district in the Rhode Island town. The measure followed public comments about data centers' energy and water use, limited job creation, and potential effects on local infrastructure, though one resident argued that stricter rules could bring tax revenue and other benefits.
The Burrillville Town Council approved a glass-fused steel water tank for the Nasonville water system. It took no action on a resident petition to amend the zoning ordinance to explicitly ban data centers, with officials saying existing rules already prohibit them.
Smithfield’s Board of Appeals continued the City Investments LLC and ROK LLC appeal involving the Smithfield Corporate Complex until an unscheduled January 2027 meeting. The project application is also the subject of a pending Superior Court lawsuit against the town and its Planning Director, and no construction is underway.
The Smithfield Zoning Board of Review postponed a hearing on a proposed data center developer's appeal of a town planner's determination that its application was incomplete. The hearing was moved to January 2027 while two lawsuits filed against the town remain pending.
Smithfield's Zoning Board of Appeals will hear a developer's appeal of a town planner's determination that its proposed data center application was incomplete. If the appeal succeeds, the project will advance to the planning board process.
A developer is suing the Town of Smithfield after the Town Council barred data centers from all zoning districts and rejected or stalled review of a proposed business park that would include one. The lawsuit seeks to have the project considered under the zoning rules in effect when the application was submitted, while town officials say they are researching data center impacts and want development appropriate for surrounding areas.
Property owners seeking to develop a data center in Smithfield are suing the town, arguing that its recently enacted ban on data centers is unlawful. Town officials and residents oppose the facilities because of concerns about wildlife, natural resources and potential health impacts.
Smithfield approved an ordinance intended to prevent a proposed data center from being built in the town. The developer, Canton City Investments in Our OK LLC, is appealing the town’s handling of its application and has filed two lawsuits challenging the ordinance and certificates declaring the application incomplete.
The Warren Town Council approved a rewritten zoning ordinance on first reading, but it did not prohibit data centers, battery storage facilities or prisons. The planning board plans to draft a separate amendment addressing those uses before a future council vote and public hearing.
Investors Hanton City Investments and ROK, LLC, are challenging Smithfield’s denial of their proposed business park and data center. The developers have appealed to the Zoning Board of Appeals and filed a lawsuit seeking to reverse the town’s decision, arguing their application was submitted before Smithfield adopted a data center ban.
A new report from Groundwork Collaborative warns that AI data centers could increase household electricity costs, prompting scrutiny of Rhode Island's proposed winter rate hike. While Rhode Island Energy's rate filing does not attribute the increase to data centers, state lawmakers failed to pass a bill that would have required large data centers to cover their own grid costs. Meanwhile, the town of Smithfield has adopted a zoning amendment restricting data centers.
The Coventry Planning Commission discussed future zoning code changes, signaling support for adding a prohibition on data centers to a zoning package. Members raised concerns about data centers' high energy and water use, potential water discharge warming, and noise, with one suggesting a moratorium. No formal zoning changes were adopted, but a package could reach the Town Council in early 2027.
The U.S. House passed the "Ratepayer Protection Act" (H.R. 9340), which would require states to consider making large data centers pay for associated grid upgrades, though it stalled in the Senate. Meanwhile, Rhode Island has proposed its own stricter bills (H7331 and S2776) that would mandate data centers over 50MW pay for infrastructure costs and include water-use reporting requirements. The federal bill uses "consider" while the Rhode Island bills use "mandatory" language, reflecting different approaches to regulating data center energy and water impacts.
The Hopkinton Town Council has scheduled a public hearing for October 19 to discuss a proposed zoning amendment that would prohibit data centers in all zoning districts. This action follows a discussion where a resident inquired about the town's data center moratorium.
The Cumberland Town Council voted 6-1 to amend its zoning ordinance, explicitly prohibiting data centers within the town limits. This decision followed public testimony and council discussions about concerns over electricity consumption, water usage, noise, and environmental impacts. Council members cited rising utility costs and local environmental conditions as key motivators for the ban.
Rhode Island is pushing an AI strategy, but faces significant questions regarding the power and water demands, tax incentives, and job creation from data centers. A proposed corporate complex in Smithfield, which may include data storage facilities, is serving as a critical local test case. State lawmakers are considering bills to make large data centers bear their infrastructure costs and to offer tax incentives, while Smithfield has discussed zoning amendments to define and potentially prohibit data centers.
The Hopkinton Planning Board has recommended a townwide data center ban to the Town Council, which would prohibit data centers in every zoning district, including aquifer protection overlays. The board also postponed action on a separate soil erosion and sediment control ordinance to a special meeting on September 23rd. The recommendation now proceeds to the Town Council for a decision.