Briefing 10/17/2025

Weekly updates on the political risks American data center projects

Oct 17, 2025

This week’s round-up: In Pennsylvania, community pushback intensified as Hampden Township unanimously rejected office-park data centers; Blakely saw a developer withdraw plans; and in Anthony Township, Concerned Citizens of Montour County urged denial of Talen Energy’s 1,300-acre rezoning. In Kentucky, Meade County’s Planning Commission and Fiscal Court unanimously blocked a 135-acre rezoning for a proposed data center after hundreds of residents opposed the project. In Missouri, Columbia’s Planning & Zoning department considered a north-of-town industrial rezoning that could facilitate a future data center; staff supported it, while the Missouri Coalition for the Environment opposed it. Also in Pennsylvania, a developer challenged Dorrance Township’s ordinance, arguing that it unlawfully excluded data centers, and sought a ruling to clear a 155-acre site for development.

Pennsylvania community groups urge officials to restrict data center development

Community pushback is shaping data-center siting in Pennsylvania. Hampden Township commissioners unanimously rejected a September proposal to allow data centers in office-park zones after a petition and door-to-door campaign by Food & Water Watch. In Blakely (Lackawanna County), a developer dropped plans the same month following local protests. In Anthony Township (Montour Co.), Concerned Citizens of Montour County is urging officials to deny Talen Energy’s request to rezone 1,300 acres for potential industrial uses, including a data center.

Meanwhile, large projects are still advancing: Amazon Web Services is developing two Pennsylvania sites totaling $20B (including Salem Township), NorthPoint plans a 15-building campus in Hazle Township, and Starwood Digital Ventures unveiled a six-million-sq-ft proposal in New Castle County, Delaware, tied to a 500-kV transmission line connection.

Why it matters

Zoning headwinds rising: Unanimous local votes and petition-driven campaigns signal municipalities may confine data centers to heavier industrial zones or deny permits, slowing timelines and narrowing site options in PJM territory.
Grid, power mix, and cost scrutiny: Dominion’s plan to add gas capacity amid 40 GW of Virginia demand and PJM constraints raises cost, carbon, and community-impact questions that spill over to Pennsylvania and Delaware campuses (backup-diesel use, noise, and air-quality are common complaints of local opposition).

Meade County, Kentucky, rezoning for a proposed data center unanimously voted down

After a five-hour public hearing, the Meade County (KY) Planning Commission declined to send a favorable recommendation on a rezoning request for 135 acres off Joe Prather Highway (Ag-2/Res-1 to Light Industrial) to enable a data center.

That same evening, the Meade County Fiscal Court unanimously voted to block the proposal. More than 150 residents attended, and a Change.org petition surpassed 2,500 signatures. Residents cited rising utility costs, water usage, noise, and a decline in property values. Supporters argued that the project would create jobs and generate tax revenue.

Why it matters

Zoning gate closes: A unanimous Fiscal Court rejection signals tighter tolerance for rural siting in Kentucky. Agricultural/residential land conversions to light industrial for data centers will face steep odds without clear community benefits.
Narrative spillover: Local claims around wells, water use, noise, and grid strain, amplified by petitions and large turnouts, can rapidly shape county decisions and stall early-stage sites across the Ohio Valley.

Environmental groups raise concerns about a data center rezoning request in Columbia, Missouri

Columbia’s Planning & Zoning Commission will hear a request to rezone a parcel north of town to industrial uses, a change that would permit a future data center on the site. Staff’s agenda report says the change “aligns with the land use context.” At the same time, the Missouri Coalition for the Environment argues that opaque disclosures make it difficult to assess the project's impacts, noting potential loads of “up to 200 MW.”

The city’s development services manager, Pat Zenner, said that any data center would still have to undergo a full regulatory review, as current zoning does not permit data centers.

Why it matters

Early zoning signal: Staff support suggests a viable path to industrial entitlements, but the Council’s final say and scrutiny over load, water, and transparency add risks and possible conditions that affect the timeline and design.
Disclosure trendline: Activist push for energy-use transparency (and potential renewable/efficiency conditions) mirrors statewide and PJM-region debates, increasing pre-filing due diligence needs for developers.

Check our report

Developer challenges Dorrance Township, Pennsylvania, zoning, claiming unlawful exclusion of data centers

A company seeking to build a data center on a 155-acre parcel in Dorrance Township (Luzerne County, PA) petitioned the township zoning hearing board to rule that the zoning ordinance in effect prior to recent changes unlawfully excluded data centers. The challenge, an “exclusionary zoning” claim, aims to clear the way for a proposed facility on the site.

Why it matters

Precedent: If the board finds the ordinance exclusionary, it could set a local precedent that compels townships to explicitly accommodate data centers in at least one district, opening paths for projects without full code rewrites.
Faster permitting via appeal: Winning an exclusion challenge can significantly shorten protracted rezoning battles, thereby affecting timelines and bargaining leverage for developers across Northeastern Pennsylvania.

Mentions in the Press

“The sleeper issue that could play a huge role in Virginia and New Jersey — and the midterms”
https://www.nbcnews.com/politics/elections/data-centers-utility-costs-sleeper-issue-jersey-virginia-elections-rcna235401

Links

“Japan’s Obayashi to buy US data center builder GCON”
https://asia.nikkei.com/business/business-deals/japan-s-obayashi-to-buy-us-data-center-builder-gcon

“Towns are saying no to AI data centers. One got sued over it.”
https://www.washingtonpost.com/nation/2025/10/13/data-center-bans-lawsuit/

“AI Data Centers, Desperate for Electricity, Are Building Their Own Power Plants”
https://www.wsj.com/business/energy-oil/ai-data-centers-desperate-for-electricity-are-building-their-own-power-plants-291f5c81

“PJM Pursues Rule Change to Meet Data Center Surge. Critics Fear Gas Suppliers Could Benefit.”
https://insideclimatenews.org/news/13102025/pjm-pursues-rule-change-to-meet-data-center-surge-critics-fear-gas-suppliers-could-benefit/

“US Department of the Air Force accepting proposals for AI data centers in military bases”
https://www.datacenterdynamics.com/en/news/us-department-of-the-air-force-accepting-proposals-for-ai-data-centers-in-military-bases/

“Delaware PSC Opens Docket for Large Load Tariff, Pauses Interconnections”
https://news.delaware.gov/2025/10/14/delaware-psc-opens-docket-for-large-load-tariff-pauses-interconnections/

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