Otoe County pauses data center permits for up to a year

Otoe County officials voted last month to suspend permits for new data centers for as long as one year. The move follows resident concerns about water use, electricity costs, and potential heat impacts from the facilities.

Wynee Benedict addressed the Otoe County Board with questions about sufficient water supplies, who would cover power expenses, and risks of creating heat islands. The board acted to allow time for studying how such projects align with county plans and updating regulations. A proposed Google data center could demand more than triple the peak electricity used by Lincoln, according to documents from a January utility meeting. Tenaska, a potential partner, has optioned land in Otoe and nearby Gage counties. State lawmakers approved a transparency bill this year requiring annual reports on data center ownership, size, location, electricity demand, and water usage. Madison County has already added special permit rules, while Gage County plans a moratorium hearing later this month. Resident Jim Nemec said the pause could send the wrong signal about openness to business, though he understood the need for study. Benedict noted the county wanted rules in place before any facilities arrive.

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Photorealistic image of Gov. Hochul signing data center pause order with halted construction site in background
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New York governor pauses large data center construction

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New York Gov. Kathy Hochul signed an order pausing construction of large data centers for up to a year. The move marks the first statewide pause in the country. It halts new hyperscale data center approvals pending environmental rules.

Residents in rural areas across the United States are opposing new data center projects over concerns about water supplies, energy costs, and farmland loss. In Tazewell County, Illinois, locals successfully blocked a proposed facility after packed council meetings and petitions. The backlash highlights tensions between AI infrastructure growth and agricultural needs.

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New York Governor Kathy Hochul issued an executive order Tuesday imposing a one-year moratorium on large-scale data center construction. The move marks the first such statewide pause in the nation. Hochul cited concerns over rising electricity costs and strain on natural resources.

Ohio has suspended tax breaks for new data center projects after losing $1.5 billion in revenue. Ongoing projects will continue to receive the exemptions. New developments will not qualify for now.

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The Environmental Protection Agency held a public hearing on Wednesday to discuss a proposed rule that would give states more control over public input in permitting processes for minor sources of air pollution, including facilities that power data centers.

Activists gathered outside the Microsoft Build conference in San Francisco this week to voice concerns about the environmental impact of AI data centers. They distributed leaflets detailing effects on land, water and power resources. Microsoft CEO Satya Nadella addressed community concerns during his keynote address on Tuesday.

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