Briefing 03/27/2025
This week’s roundup: Texas SB6 sparked backlash from conservatives who say new data center regulations could derail Trump’s $500B Stargate project. In Minooka, IL, a proposed 340-acre Equinix data center drew concern over its heavy water and power use. Local officials back it, but delays and environmental strain could slow Illinois' data center momentum. In Leesburg, IN, a 500-acre project triggering a 1,000 MW power demand has locals alarmed.
Conservatives Slam Texas Data Center Bill as Threat to Trump’s AI and Energy Agenda
The proposed Texas Senate bill “Relating to electricity planning and infrastructure costs for large loads” (SB6) is drawing backlash from conservatives who argue it could derail Donald Trump’s stated goal for U.S. dominance in AI and energy. Nevertheless, the SB6 has been sponsored by Republican senators Phil King and Charles Schwertner, and has wide bipartisan support.
Bill information SB6: The SB6 would grant the state greater authority over new data centers, including power use and cost regulations. Critics claim the bill could scare off investment, including the Trump-backed $500 billion Stargate project, while supporters argue it's necessary to strengthen Texas's power grid.
Primary Sponsors: Sen. Phil King (R) and Sen. Charles Schwertner (R). Sen. Donna Campbell, who recently raised concerns about data center impacts on the grid, is one of the co-sponsors.
Partisan breakdown of co-sponsors 6 (R) – 3 (D)
Key provisions include:
Interconnection Standards: The Public Utility Commission (PUC) is mandated to establish standards for connecting large load customers to the Electric Reliability Council of Texas (ERCOT) grid. They apply to customers whose load exceeds a demand threshold set by the PUC.
Cost Responsibility: Large load customers are required to contribute to the recovery of costs incurred by electric utilities for interconnecting these large loads.
Behind-the-Meter Generation Charges: The bill mandates that all retail customers in the ERCOT region, including those with behind-the-meter generation, pay retail transmission charges based on a percentage of their non-coincident peak demand.
Why it matters:
Texas Data Center Boom: SB6 could introduce costly regulatory hurdles in Texas, a traditionally favorable state for data center development that hosts the first facility of the Stargate Project. If the SB6 passes, it could potentially divert investment to other states.
Beyond the Party Line: The bipartisan support for the SB6 reflects on how data center opposition goes beyond traditional political divides. Moreover, the fact that Republican lawmakers are spearheading the bill shows discrepancies within the same party at the State and Federal levels.
Illinois Town Weighs Water and Power Strains in Bid to Land Massive Equinix Data Center
The village of Minooka, Illinois is reviewing a proposal from Equinix to develop a 340-acre data center that would use approximately 700 megawatts of electricity and 3 million gallons of water per day. Local farmers criticize the project, arguing that the scale of the project could place significant demand on local water resources and energy infrastructure, with possible implications for the state’s clean energy targets. Local officials have expressed support, citing anticipated tax revenue and job creation.
Hugh O’Hara, executive director of the Will County Governmental League, has also raised concerns about water allocation and whether the project represents the “highest and best use” of a limited public resource.
Why it matters:
Resource Constraints as a Development Barrier: The proposal highlights how water access and grid capacity are becoming key gating factors for data center expansion—even in regions previously seen as friendly to development.
Growing Scrutiny from Local Stakeholders: Even without organized activist groups, individual landowners and regional planning bodies, like the Will County Governmental League, are questioning whether data centers are the best use of limited public resources.
Leesburg, Indiana Data Center Rezoning Faces Community Pushback and Regulatory Uncertainty
A proposal to rezone approximately 550 acres of farmland near Leesburg, Indiana, from agricultural to industrial use has raised concerns among residents and local officials. Though no developer has been officially confirmed, county planning staff believe the site may be intended for a large-scale data center, possibly involving logistics firm Prologis. The land’s location near a NIPSCO substation and major transportation corridors adds to its strategic appeal. The Kosciusko Area Plan Commission is scheduled to review the rezoning on April 2.
Leesburg residents have raised concerns about the data center’s potential impact on energy demand, utility rates, and infrastructure—organizing petitions, attending public meetings, and writing letters to local newspapers.
Opposition:
Keep Leesburg Rural, a local group, has organized public meetings and launched a petition with more than 1,000 signatures, citing potential impacts on land use and utility infrastructure.
Kevin McCherry, Vice Chair of the Kosciusko Area Plan Commission, noted the site includes high-quality farmland and said he’s still waiting for more project details before making a determination.
Why it matters:
Local Zoning Challenges: The case shows how early-stage land use change petitions can prompt local opposition, especially in areas with a strong agricultural identity and limited infrastructure.
Grid and Utility Sensitivities: With a projected 1,000 MW load, the project would require substantial energy resources—potentially influencing state-level regulatory review and utility investment planning.
Links
"Microsoft abandons some data center projects. Company says Mt. Pleasant work on track"
"Crypto Miners at Risk as Data Center Growth Threatens US Grid"
https://www.ccn.com/news/technology/crypto-miners-risk-disconnections-data-center-threatens-us-grid/
"China built hundreds of AI data centers to catch the AI boom. Now many stand unused."
https://www.technologyreview.com/2025/03/26/1113802/china-ai-data-centers-unused/
“A Fire Plunged Heathrow Into Darkness. A Nearby Data Center Kept Humming. Why?”
https://www.nytimes.com/2025/03/26/world/europe/heathrow-fire-power-outage-explained.html
Join the Data Center Watch Briefing and stay ahead of growing political risks for data centers.