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Hotspots

The Indiana City Saying ‘Tech Yeah!’ to Data Centers

Plus the week’s biggest development fights.

The United States.
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1. LaPorte County, Indiana — If you’re wondering where data centers are still being embraced in the U.S., look no further than the northwest Indiana city of LaPorte.

  • LaPorte’s city council this week unanimously approved the expansion of a data center campus already under construction. Local elected officials were positively giddy at the public hearing on the vote, with city mayor Tim Doherty donning an orange t-shirt exclaiming a pro-AI pun: “TECH YEAH!”
  • Doherty explained his enthusiasm at the hearing in simple dollars and cents. State cuts to education had “put our local schools in an impossible position,” he said, asking: “Will the 15% in revenue sharing give our kids a superior education and the best chance at a future in this tech-driven world?”
  • That revenue sharing Doherty referenced was Microsoft’s deal in March with LaPorte’s school corporation, which stated 15% of the data center’s property tax revenue would go to the corporation for 20 years. So good was that deal some city councilors were vocally defiant against those who were opposed to the project expansion.
  • “Microsoft seems like they’re going to be a good partner for the city. They care. They’re presenting what I think is a good deal and trying to take care of people around them. So I’m all for it and if anybody wants to vote me out, hey, go for it,” councilor Roger Galloway told the hearing room.
  • The lesson? Give lots of money to education and you’re more likely to get a permit. Tale as old as the mining industry.

2. Cumberland County, New Jersey — A broader splashback against AI infrastructure is building in South Jersey.

  • The city of Millville instituted a temporary moratorium on data centers Tuesday. Some media reports state this effectively rejected a reported 1.4 gigawatt data center campus under development near the city. At the same time, Millville’s mayor Dan Dixon claimed this week no project plans were formally or informally submitted to the city.
  • Millville is minutes away from Vineland, where a 350-megawatt data center under development has produced multitudinous noise pollution complaints. This action comes amidst broader backlash to data centers in New Jersey; a Stockton University poll out May 5 finding most voters in the state would support a local data center ban.
  • Project conflict is nothing new in South Jersey — just ask the $2 billion Glassboro-Camden light rail project.

3. Washington County, Oregon — Hillsboro, a data center hub in Oregon, is turning to a moratorium.

  • Hillsboro currently has 18 data centers operating and under construction, per the city. But amidst protests backed by the Portland DSA chapter, the city of Hillsboro will be temporarily halting applications for new data center projects.
  • City staff have been asked “to explore all our options, including outright refusal of approval of applications,” according to a statement attributed to Hillsboro Mayor Beach Pace. Pace will also no longer sign tax abatement agreements with data center companies indefinitely.
  • Apparently this came after almost 20 companies applied for those benefits, including some applications solicited by the city. Reporting that uncovered the behind-the-scenes tax talks prompted calls for a special emergency legislative session to deal with the influx.

4. Champaign County, Ohio — We’re still watching the slow downfall of solar in Ohio and there’s no sign of it getting any better.

  • Hillclimber Solar, a RWE-backed utility solar and storage project, this week withdrew its application to the Ohio Power Siting Board. Days earlier, project opponents packed a key OPSB hearing in the county, which has a solar moratorium. RWE was able to avoid the temporary ban because its agreements with PJM happened before it was enacted. But OPSB has tended to frown on tense situations like these.
  • Ohio used to be a fine place for a solar farm but no more, thanks to changes in state law and regulators sympathetic to local opposition. Solar developer Open Road Renewables pledged in March to never develop another project in the state, and I wouldn’t be surprised to see more join them.

5. Essex County, New York — Man oh man, what’s going on with battery storage in rural pockets of the Empire State?

  • Ticonderoga is a hamlet in northeast New York on the border of Vermont, population north of 5,000. It’s a bucolic place that shares a name with the “World’s Best Pencil” and… just banned battery storage for six months, after residents got up in arms about a company approaching the town with BESS development plans.
  • It’s only the latest town in the Adirondack Mountains to temporarily ban battery storage. Some of these bans have been paradoxical to say the least; apparently the town of St. Armand enacted its moratorium days after losing power in a winter storm. Shouldn’t storage be welcomed after something like that?
  • My best guess is that battery fire fears have cemented themselves culturally in some of these communities. It’s also possible some of this is just a resistance to change. Either way, it’s not a great trend line for the grid.
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Q&A

How to Talk to Climate-Minded Investors About Data Centers

A chat with Colette Lamontagne, senior director for electric power at Ceres.

Colette Lamontagne.
Heatmap Illustration

This week’s conversation is with Colette Lamontagne, senior director for electric power at the sustainability finance advocacy group Ceres. Her team just released a shareholder engagement guide for the utility space around data center development. I’ve been wondering when the ESG crowd would enter into the AI infrastructure fray, so I asked if I could chat with Colette about what the guide could teach my lovely readers and whether the data center backlash portends a new wave of boardroom fights between electric companies and institutional investors.

Our conversation was lightly edited for clarity.

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Hotspots

The Most Important Data Center Vote You Haven’t Heard About

Plus more on this week’s biggest development fights.

The United States.
Heatmap Illustration/Getty Images

1. Washtenaw County, Michigan — The Mitten State made itself the center of the data center backlash this week, as multiple AI skeptics won key Democratic congressional primaries. Yet the most significant election result wasn’t a primary vote, but rather a quiet referendum in a small town outside Ann Arbor.

  • On Tuesday, the town of Augusta voted by a nearly 9-1 margin to overturn a land use ordinance enacted by the township government the previous year allowing a data center on agricultural land. This means developer Thor Equities will either have to find a way around clear local rejection or abandon Augusta for its proposed data center.
  • Augusta sits on the border of Michigan’s 7th congressional district, where Sunrise Movement cofounder Will Lawrence pulled off a surprise upset against a moderate establishment-backed candidate. Lawrence’s victorious primary campaign was rooted almost entirely in advertising against data center development and tying his opposition to supporting the industry.
  • I believe the Augusta result proves the case made by Lawrence’s candidacy — voters will resoundingly back ways to fight data centers. A Lawrence campaign memo published by Politico after the primary makes the argument he will defeat incumbent Republican Tom Barrett almost entirely on this issue, too, calling it “the hyperscale elephant in the room.” The memo also claims there are “data center voters” who have “not traditionally been available to Democrats [but] have been highly motivated by hyperscale development in mid-Michigan.”
  • “Will’s strong stance on this issue and his consistency in showing up and standing alongside residents in data center fights expands his potential voter base in the general,” the memo states.

2. Travis County, Texas — I’ve been getting a lot of texts from sources about Texas Governor Greg Abbott issuing a stop to data center permitting. Let’s get into what really is happening here.

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Spotlight

How the National Park Service Wound Up in a Data Center Deal

The agency is reportedly considering a land swap that would allow AI infrastructure in one of northern Virginia’s largest green spaces.

The Prince William Forest Park entrance.
Heatmap Illustration/Getty Images

A national park site and Civil War conflict area in Virginia is now a battleground in the fight over data center development on federal real estate — and Congress is starting to get involved.

On July 23, the Prince William Times reported that Trump’s National Park Service is “considering a land swap” to allow “at least four data centers” on land within the boundaries of Prince William Forest Park in northern Virginia, one of the largest green spaces in the Washington D.C. metro area and a flashpoint during the Civil War. Since then, my colleagues and I have confirmed based on interviews with sources familiar with the plan, public lobbying disclosures, and previously unreported correspondence from Congress to the Park Service that, indeed, there has been a concerted behind-the-scenes effort to make this swap happen, going back more than a year. Many of those concerned about the idea of this exchange told me they’ve been unable to get clear answers from the Park Service on the likelihood of the swap.

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