Briefing 04/17/2025
This week’s roundup: In Oldham County, KY, officials advanced a 150-day moratorium on new data centers amid backlash to the $6B Project Lincoln. In West Virginia, counties forced lawmakers to amend HB 2014, a data center tax incentive bill that would have diverted local revenue to state coffers. And in Maryland, more than 100 landowners are being sued by PSEG for blocking surveys tied to a new transmission line meant to power future data center demand.
Oldham County Advances Moratorium on New Data Centers Amid Fierce Backlash to $6B Project
Oldham County, KY officials voted unanimously to begin drafting a 150-day moratorium on new data center projects. The pause would allow time to update local regulations. However, it won’t affect the controversial $6 billion “Project Lincoln,” as its application was already submitted.
Project Lincoln officially OC Data Center, is a hyperscale data center initiative by Western Hospitality Partners, but details regarding specific hyperscaler involvement have not been disclosed publicly.
During the April 15 fiscal court meeting, residents voiced opposition to Project Lincoln, citing concerns about noise, environmental impact, and industrial development on agricultural land. Much of the organizing has coalesced around We Are Oldham County, a community-run Facebook group led by local resident Nathan Oberg.
Why it matters:
Moratorium as a Strategy: Oldham County is using a temporary freeze on new data center applications to regain control over site approvals and revise local regulations, but it's too late to halt the most controversial project now underway.
Grassroots Opposition: Resident-led opposition, including the We Are Oldham County campaign, highlights intensifying scrutiny over land use and environmental impact. The moratorium won’t satisfy Project Lincoln’s opponents, and more pushback is expected.
West Virginia Senate Committee Amends Data Center Tax Formula After County Pushback
The West Virginia Senate Economic Development Committee amended HB 2014, a bill introduced on behalf of Gov. Patrick Morrisey to attract microgrid-powered data centers, after strong objections from county officials. The original version would have centralized most property tax revenue from data centers into state-managed funds. The amended version now allocates 30% of tax revenue directly to the host county.
The debate over HB 2014 reveals rising tension between state-led economic development strategies and local governments' demand for fiscal revenue. While West Virginia aims to centralize incentives to attract high-tech infrastructure, counties are pushing back to protect local tax bases.
Bill Information (HB 2014): Establishes the Certified Microgrid Program to attract high-impact data centers by allowing them to operate independent energy grids within designated districts, aiming to boost economic development and modernize energy infrastructure.
Sponsors: Del. Roger Hanshaw (R), Del. Clay Riley (R), Del. Bob Fehrenbacher (R), Del. William Anderson (R), Del. Mark Zatezalo (R), Del. James Akers (R), Del. Sean Hornbuckle (D)
Votes:
House: 88 YES (81 R, 7 D) – 12 NO (12 D)
Senate: Passed 32 YES (30 R, 2 D) – 1 NO (1D)
Opposing groups and voices:
Berkeley County Commission: President Eddie Gochenour led opposition, warning the bill would strip local revenue and vowing to "fight like the last monkey on the ark."
Other county officials: Warned of a "game changer" in local finances, with testimony highlighting how the original bill would redirect nearly all new tax income to the state.
Why it matters:
Local Revenue Conflict: Counties like Berkeley feared losing millions in future tax revenue from high-impact data centers, raising concerns over service funding and local approval for future sites.
Shifting Incentive Landscape: The revised formula may influence data center siting decisions, as counties evaluate financial trade-offs and political leverage.
More Than 100 Maryland Landowners Refuse Power Line Surveys, Triggering Federal Lawsuit
PSEG has filed a federal lawsuit against more than 100 landowners in Central Maryland who are refusing to grant access for environmental surveys tied to the Maryland Piedmont Reliability Project—a 67-mile transmission line intended to support growing electricity needs driven largely by data center expansion.
The opposition is led by STOP MPRP, Inc., an organized local group resisting what they see as a threat to rural land and property rights.
Why it matters:
Grid infrastructure delay risk: PJM commissioned this line to support rising demand from data centers, especially in Northern Virginia; delays could bottleneck energy expansion plans.
Organized rural resistance: The all-volunteer STOP MPRP effort illustrates how community opposition can legally disrupt critical transmission upgrades for data center growth.
Links
Democrat-led Clean Cloud Act Targets Emissions From Crypto And AI Data Centers
https://carbonherald.com/democrat-led-clean-cloud-act-targets-emissions-from-crypto-and-ai-data-centers/
Data center boom tests Arizona's power grid
https://www.axios.com/local/phoenix/2025/04/16/arizona-data-centers-energy-power-ai
Data Centers: Economic benefit or environmental boondoggle?
https://thenevadaindependent.com/article/data-centers-economic-benefit-or-environmental-boondoggle
New incentive proposal aims to get Colorado into data-center recruitment game
Customers could end up paying for data centers’ energy costs in the absence of reform: Experts
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