US States Clash Over Data Center Expansion and Regulation

The United States is seeing a surge in large-scale data center developments that have sparked significant political and legal backlash. In Oklahoma, Google and Beale Infrastructure Group, LLC have begun construction on Project Clydesdale, a 506-acre campus in Tulsa County. To manage this growth, Governor Kevin Stitt signed laws requiring large-load customers to fund their own energy infrastructure and limiting groundwater use for cooling. Local reactions vary, with the Shawnee City Commission enacting a moratorium on new proposals through 2027, while gubernatorial candidates Mike Mazzei and Gentner Drummond debate the future of property tax breaks for developers.

Similar tensions have escalated in South Carolina, where the Southern Environmental Law Center filed for a temporary injunction to halt the $3 billion Valara Project in Spartanburg County. The lawsuit alleges that local officials misled the public by classifying the 300-acre site as a minor development to bypass regulatory review. In response, the Spartanburg County Council delayed a vote on a year-long moratorium on such projects until September 21.

In Utah, the industry has already caused political upheaval. Senate President Stuart Adams lost his Republican primary seat in June following public opposition to the Stratos project in Box Elder County. While the Utah Military Installation Development Authority paused the project pending a potential referendum, investor Kevin O'Leary claims the development is still moving forward. Utah lawmakers are now examining the environmental impacts and the lack of transparency in approval processes ahead of the 2027 legislative session.