Briefing 10/31/2025

Weekly updates on the political risks American data center projects

Oct 31, 2025

This week’s round-up: In Virginia, data centers moved from local zoning fights into statewide campaign messaging. In New Mexico, community groups sued Doña Ana County to halt incentives for the 1,400-acre “Project Jupiter,” adding legal risk to a campus that includes on-site power and desalination. And in Indiana, Decatur County residents launched a petition against the 550-acre “Jumping Bison” campus near Greensburg, reviving scrutiny despite earlier local tax abatements and signaling rising friction at the early-stage stage in second-tier counties.

Data Centers become a key issue in Virginia’s general election

Data centers have moved from county-level zoning debates into statewide campaign messaging. Campaigns and legislative races are signaling potential changes to siting guardrails (pre-filing disclosures, line-burial expectations) and tariffs to recover infrastructure from large loads. This election is less about being “for or against” data centers and more about how Virginia will structure siting rules and allocate grid costs as projects expand beyond Loudoun and Prince William. Outcomes will set the tone for 2026 legislation and SCC proceedings that shape timelines and project economics

One example where the data center question has been key is the House District 21 race in Prince William, where both candidates called for tighter oversight but differ on tools and cost allocation. Del. Josh Thomas (D) sponsored HB 1601, a bill that included site assessments for noise, water, and power, which passed the General Assembly but was vetoed by Governor Youngkin. The challenger is Gregory Lee Gorham (R), who backs stronger local controls and fiscal levers to shape proposals.

Why it matters:

Policy swing risk: Post-election appointees and 2026 session priorities (siting, utility cost allocation, reliability) could shift timelines and cap-ex assumptions in Northern Virginia.
Narrative hardening: “Community impacts” framing is now mainstream political messaging, raising odds of moratoria/overlays and tighter permit conditions.

Groups sue to stall Doña Ana County, New Mexico, data center incentives

The Empowerment Congress of Doña Ana County and two residents filed a lawsuit seeking to halt county-approved IRBs and LEDA tax rebates for “Project Jupiter,” a 1,400-acre data center campus near Sunland Park.

Plaintiffs allege procedural defects and improper eligibility. The project includes four buildings, microgrid facilities, natural gas power plants, battery storage, and desalination. Stack Infrastructure has provided financial backing.

Why it matters:

Legal scrutiny of subsidies: Lawsuits targeting IRB/LEDA approvals can freeze schedules and force disclosure, adding financing and permitting risk.
Post-approval lawsuits: Expect more “incentives-challenge” litigation as communities contest fast-tracked approvals for AI-scale campuses.

Residents oppose data center in Decatur County, Indiana

Residents in Decatur County launched a petition and formed the Coalition to Protect Decatur County Against AI Data Center to oppose the “Jumping Bison” hyperscale campus near Greensburg (approx. 550 acres within an Economic Revitalization Area).

Local outlets report the petition gathered hundreds of signatures within days, and organizers scheduled a community meeting to press county and city officials. Prior city documents show Greensburg approved a tax abatement for the two-phase project earlier in the process.

Why it matters:

Early-stage drag: Petitions can trigger added hearings and push projects into environmental/annexation or zoning debates before formal filings are complete.
Indiana momentum meets friction: Indiana’s siting wave is encountering organized local resistance outside Marion County, raising timeline and entitlement risk in second-tier counties.

Check our report