Virginia's State Corporation Commission has ordered data centers in the state to pay for all transmission infrastructure used exclusively for their projects, according to Tom's Hardware. The move comes after PJM Interconnection, which distributes power in the state, raised prices by 76%, with watchdog Monitoring Analytics attributing the hikes largely to AI data centers. One Virginia county reportedly asked employees, including schools, to conserve power. Governor Abigail Spanberger said the state is "taking real steps to address rising energy costs for Virginians" and pledged to keep working to ensure data centers "pay their fair share." Virginia hosts at least 570 data center sites, more than any other state.
The Virginia order is described as one of the first statewide actions enforcing a pledge President Trump extracted from major AI hyperscalers in March, when he summoned them to the White House and had them promise to "pay their own way" on infrastructure; that pledge was expanded in July to include state governors, utilities and developers. Critics have dismissed the pledge as unenforceable, but Tom's Hardware notes Virginia's move could have a real financial impact. Oregon is the only other state so far to raise rates specifically for large power users like data centers, under its POWER Act, with Portland General Electric implementing a 30% rate increase for big consumers while cutting residential rates by 1.3%.
In Nashville, the Metro Council voted 27-5 to give Mayor Freddie O'Connell authority to use eminent domain to potentially block a planned 23-acre, $700 million data center campus next to the Nashville Zoo at Grassmere, Tom's Hardware reported. Zoo officials and more than 500,000 petition signers, including celebrities such as Brad Paisley, Sheryl Crow and Jack White, raised concerns about noise and light pollution affecting the zoo's animals. Developer DC Blox argued the site previously served data center functions. The council vote allows the city to negotiate a purchase with DC Blox, but does not guarantee acquisition; a judge or jury could ultimately decide the property's value if the two sides disagree, and the company could challenge the eminent domain claim.
In Northern Kentucky, an AI company offered landowner Ida Huddleston and her family $26 million for roughly half of their 1,200-acre farm, nearly ten times the local land value, according to Tom's Hardware. The family refused, citing concerns about disappearing land, food and water, with Huddleston saying, "We know whenever our food is disappearing, our lands are disappearing, and we don't have any water—and that poison." Her daughter, Delsia Bare, said the family's land has fed generations, including through the Great Depression, and that "$26 million doesn't mean anything." The same company reportedly approached other landowners in the area, some of whom agreed to sell.
Beyond these individual cases, Tom's Guide reports that a growing number of states are considering or have enacted moratoriums on new data center development. Texas Governor Greg Abbott announced a moratorium on data center approvals through the state's Public Utility Commission and grid operator ERCOT pending an audit, saying "Texans must come first." Other states with moratoriums or restrictive legislation include Delaware, Georgia, Michigan, New York, Pennsylvania, South Carolina, Vermont and Virginia, according to the National Conference of State Legislatures, while similar bills have failed in Maryland, Minnesota, New Hampshire, Oklahoma, South Dakota and Wisconsin.
Tom's Guide notes that opposition to data centers stems from their heavy water and electricity consumption, which raises utility bills for nearby residents, as well as noise pollution from cooling systems, emissions from backup generators, and the conversion of green spaces such as farmland into industrial facilities. According to figures cited by Tom's Guide, more than 700 data centers are under construction across 38 states, and over 4,500 active facilities nationwide already consume 4.4% of total U.S. electricity, with energy consumption projected to double by 2028 due to AI workloads.