Local and state officials scrutinize data center projects over power use and emissions

What This is

• Local and state officials are tightening scrutiny of large data centers as AI-driven growth raises concerns about electricity demand, water use, air pollution, and costs shifted to residents and ratepayers.
• Spokane, Washington approved an emergency one-year moratorium on new large data centers while it drafts rules addressing impacts on energy, water, air quality, and electricity customers.
• Seward County, Nebraska is considering a temporary data-center moratorium to create regulations and performance standards, citing infrastructure and natural-resource concerns like power and water.
• Imperial County, California rescinded approvals for a nearly one-million-square-foot hyperscale AI data center, imposed a 45-day moratorium, and formed an advisory commission as the developer sued.
• Kansas City-area residents are raising health concerns about hyperscale data centers using on-site natural-gas turbines, as federal permitting changes and lawsuits raise the stakes for local air quality.
• The U.S. Justice Department asked a court to dismiss a Clean Air Act lawsuit alleging xAI ran dozens of gas turbines without required permits in Mississippi, arguing the data center is critical to the economy and military.

Why This Matters

• How data centers are powered will shape near-term electricity prices, grid reliability, and the pace of adding new generation and transmission.
• Local decisions on siting, zoning, and environmental review set precedents for how communities can accept, modify, or block major AI-era industrial loads.
• Emissions and cooling-water choices can concentrate health and environmental harms near specific neighborhoods, raising equity and consent questions.
• Federal moves that speed grid access or relax air permitting can shift power from local regulators to national institutions and courts.