Briefing 05/23/2025
Weekly updates on the political risks American data center projects
This week’s roundup: In Louisiana, Meta is under Senate scrutiny after proposing to power its $10B Richland Parish AI data center with new gas plants. In Kentucky, Oldham County’s $6B Project Lincoln faces backlash over its zoning strategy, with State Sen. Lindsey Tichenor warning of legal challenges. In Indiana, over 1,000 Union Township residents packed a hearing to oppose two QTS data centers near Wheeler. And in Franklin Township, residents launched a 2,500-signature petition against a 467-acre data center proposal by an unnamed developer.
Meta Faces Senate Scrutiny Over Plans to Power $10B Louisiana Data Center with Natural Gas
Meta is under investigation by Democratic lawmakers over its plan to power a massive new AI-focused data center in Richland Parish, Louisiana with three new gas-fired power plants proposed by Entergy. The $10 billion, 4 million square-foot facility—Meta’s largest to date—has drawn criticism for potentially contradicting the company’s net-zero climate commitments.
Sen. Sheldon Whitehouse (D-RI) sent a formal inquiry to Meta CEO Mark Zuckerberg demanding details about the project’s energy use, emissions, and justification for relying on fossil fuels. Environmental groups have also filed motions with regulators seeking to force Meta to disclose more information.
Affected Projects/Company:
Meta’s Richland Parish, LA AI Data Center ($10B, 4M sq. ft.)
Entergy’s proposed 2,260 MW gas plants to serve the data center
Opposition:
Sen. Sheldon Whitehouse (D-RI)
Why it matters:
Growing Federal Oversight: Senate inquiries signal a shift toward greater scrutiny of how tech firms power AI infrastructure, especially if they rely on fossil fuels.
Siting Pressure: Pressure from environmental advocates and regulators may compel companies to reveal more details about energy deals and project siting decisions, raising reputational and regulatory risks.
Zoning Dispute Deepens Over $6B Data Center in Oldham County, KY
Western Hospitality Partners is proposing a $6 billion, 2 million-square-foot hyperscale data center—Project Lincoln—on 267 acres near La Grange, KY. The project has drawn strong local opposition over its size and location, with critics accusing the company of using a “private utility” label to bypass elected approval and fast-track a conditional use permit. Officials passed a 150-day moratorium on new data centers in April, but the project is exempt.
The project is now under review by the Technical Review Committee, following a packed public meeting where residents questioned officials about missing infrastructure details, energy demands and land use. The final decision now lies with the Board of Adjustments, which is expected to vote in June. Critics—including State Sen. Lindsey Tichenor (R) and local group We Are Oldham County—say the project’s scale is incompatible with the rural setting and warn that legal challenges may follow.
Opposition:
State Sen. Lindsey Tichenor (R)
Why it matters:
Legal Loophole Risk: The use of “private utility” classification to sidestep rezoning could set a precedent, prompting legal scrutiny and regulatory reforms in other rural areas.
State Senator Involvement: Local opposition has drawn the attention of State Sen. Lindsey Tichenor, who represents the district. She criticized the developer’s zoning approach as “a way to abuse the system and prey on a community that's not prepared for hyperscale data centers.”
That elevates the conflict from a local dispute to a state-level concern.
Over 1,000 Union Township Residents Protest QTS Data Center Plan in Indiana
More than 1,000 residents of Union Township, Porter County, Indiana packed a public meeting on May 13 to oppose two large-scale data centers proposed by QTS on nearly 800 acres of farmland. The proposed sites—dubbed Jeremiah A and B—would be located near Wheeler, and require zoning changes via a Planned Unit Development (PUD) application currently under review by the Porter County Plan Commission.
Residents voiced opposition under the slogan “Wheeler Country Not Corporate,” wearing orange T-shirts. They expressed concerns citing perceived issues related to building height, setbacks, noise, infrastructure capacity, and proximity to schools. QTS representatives presented mitigation plans, including expanded setbacks and landscaping berms, and projected the project would generate 125–175 permanent jobs and $10 million in tax revenue at full buildout.
Opposition:
Union Township residents (1,000+ attended)
“Wheeler Country Not Corporate” from Stop Duneland and Valpo/Wheeler Data Centers
Porter Township School Corporation Superintendent Stacey Schmidt
County Councilmember Andy Vasquez (opposed tax abatements)
Why it matters:
Midwest Opposition: The Union Township meeting highlights growing tensions between hyperscale data center proposals and rural communities. The outcome may shape how developers handle transparency, siting, and public engagement across the region.
Community Resistance Scaling Up: Highly visible grassroots campaigns like this—complete with youth speakers and organized branding—highlight a rising tide of opposition that can delay or derail major developments.
Franklin Township, Indiana, Residents Mobilize Against Undisclosed Data Center
Residents in Franklin Township, a southeast Indianapolis neighborhood, have organized in response to a proposed 467-acre data center development submitted by an unidentified tech company. The developer is seeking rezoning across several residential and agricultural parcels. Community members have raised concerns about potential impacts on flooding, well water supplies, and property values.
The response includes yard signs, a petition with over 2,500 signatures, and coordination with the Citizens Action Coalition. The absence of public information about the company behind the project, along with its proposed location in an area with limited infrastructure, has contributed to intensify local opposition ahead of a scheduled June 12 public hearing.
Opposition:
Protect FT (local opposition group)
Why it matters:
Water supply: Community concerns about groundwater and flooding reflect a growing trend where rural or suburban infrastructure is perceived by local opposition as insufficient for hyperscale demands.
Transparency: Limited public disclosure permitting strategies, especially when developers remain unnamed, often trigger early resistance, threatening project timelines.
Links
Report Highlights Community Pushback Stalling $64 Billion in Data Center Development Nationwide
https://insideclimatenews.org/news/19052025/virginia-data-center-development-community-pushback/
Stafford Residents Demand Action on Data Centers—County Orders Full Review of Rules
https://www.potomaclocal.com/2025/05/21/stafford-residents-push-back-on-data-centers-county-promises-stricter-rules/
Vilonia rejects crypto mine proposed by Steve Landers Jr.
https://arktimes.com/arkansas-blog/2025/05/21/vilonia-rejects-crypto-mine-proposed-by-steve-landers-jr
Group that blocked New Mexico utility merger eyes data centers in Blackstone deal
https://finance.yahoo.com/news/group-blocked-mexico-utility-merger-175600854.html
Are data centers a threat to the Great Lakes?
https://www.bridgemi.com/michigan-environment-watch/are-data-centers-threat-great-lakes
xAI’s Grok 3 comes to Microsoft Azure
https://techcrunch.com/2025/05/19/xais-grok-3-comes-to-microsoft-azure/