Lawsuit Tracker
Loudoun Is Trying to Pause the Largest Data Center Market on Earth. The County's Own FAQ Says It Cannot, and the Projects That Matter Are the Ones a Pause Cannot Touch.
Loudoun County, Virginia voted 6 to 1 in July 2026 to bring back options for pausing new data center applications, and on September 2 voted unanimously to get a legal opinion on rescinding the grandfathering it granted 5 to 4 in March 2025. The county's own FAQ says a moratorium is not legally permissible in Virginia. The 17 to 23 grandfathered applications, roughly 11 million square feet, are the only pipeline a pause cannot reach and the only place the money and the lawsuit risk actually sit. Here is the record, with the dates, the votes, the statute, and what a resident can still do.
Case facts
Regulatory fight
- Status
- No lawsuit filed. Board of Supervisors took up a pause on September 15, 2026; county attorney's opinion on rescinding grandfathering due October 6, 2026; Phase 2 zoning rewrite expected at the Planning Commission in February 2027
- Dispute
- Loudoun County residents, the Piedmont Environmental Council and a majority of the Board of Supervisors against continued by-right and grandfathered data center development; the Data Center Coalition, the Taxpayers Protection Alliance and two supervisors against a pause and against rescinding grandfathering
- Forum
- Loudoun County Board of Supervisors and Planning Commission. No court filing as of September 16, 2026
- Scale
- The largest data center market in the world. Roughly 250 data centers and about 53 million square feet built as of 2025, with about 40 million square feet in the pipeline. Our registry holds 45 Loudoun sites, 36 operating, 1,474 megawatts on record, 6 proposed or permitted
- What changed in March 2025
- By-right data centers ended 7 to 2 on March 18, 2025; every new one needs a special exception with a public hearing and a board vote. A separate grandfathering resolution passed 5 to 4 the same day, letting applications accepted before February 12, 2025 finish under the old rules if more than 500 feet from homes and diligently pursued
- What is on the table now
- A pause on processing new applications, site plans and substations while Phase 2 of the zoning rewrite is written, directed 6 to 1 with 2 absent on July 22, 2026 and brought back September 15; and an amendment rescinding the 2025 grandfathering, on which the board voted unanimously September 2 to obtain the county attorney's legal opinion by October 6
- The grandfathered set
- 17 pending administrative applications representing about 11 million square feet, per Virginia Business in September 2026. Loudoun Now counted 22 in March 2025; Technical.ly and Fox 5 report 22 and 23 in September 2026. The count moves as applications are withdrawn or completed
- The money
- About $1.3 billion in data center real and personal property tax projected for fiscal 2027, roughly 38 percent of the general fund, per Virginia Business. The Loudoun Coalition's analysis of adopted budgets puts data center exposure at 42 percent of total local tax funding in fiscal 2026, up from 3 percent in fiscal 2000. The county's own page says this revenue will plateau in five to ten years
- Litigation
- None filed. Supervisor Caleb Kershner said rescinding grandfathering risks billions of dollars in litigation
Key Takeaways
- Nothing is paused and nothing is rescinded. On July 22, 2026 the board voted 6 to 1, two absent, to have staff bring options for a pause to its September 15 meeting. On September 2 it voted unanimously to ask the county attorney whether it can lawfully undo the grandfathering it granted in March 2025, with the opinion due October 6. The pause item went before the board on September 15; as of this writing its outcome had not been reported, and this page will be updated when it is.
- The county has already answered the question the board is asking. Its own published FAQ, question 1802, says the Board of Supervisors "does not have the legal authority to implement a moratorium on new data center applications," because Virginia law requires each rezoning or special exception to be considered on its merits, and "a blanket prohibition against approval of any application for data center development" is "not legally permissible." County Attorney Leo Rogers told the board the same thing in July, citing the Dillon Rule and the 1975 Virginia Supreme Court decision that struck down a Fairfax County moratorium on site plans.
- The two amendments point in opposite directions, and only one of them reaches the pipeline. A pause stops new applications, which since March 18, 2025 already require a special exception, a public hearing and a board vote. The 17 to 23 grandfathered applications, about 11 million square feet, are under review, and the county attorney's position is that a pause "could not lawfully impact projects under review." The only lever on that square footage is rescinding the grandfathering, which is where the money and the lawsuit risk actually sit.
- The grandfathering was a choice, not a requirement, and the same board made it. It passed 5 to 4 on March 18, 2025. Supervisors Mike Turner, Laura TeKrony, Juli Briskman and Sylvia Glass voted no. TeKrony and Briskman are now the two moving to rescind it, and TeKrony's argument is exact: "There is no legal requirement for grandfathering. It is a choice." Our reading of the statute agrees, and it also points at the real risk: Virginia's vested rights law, Code section 15.2-2307, protects a landowner who relied in good faith on a significant affirmative governmental act. A resolution telling 22 applicants they may proceed is a strong candidate for such an act. That is what the October 6 opinion has to answer.
- Loudoun runs on this revenue to a degree no other county does. Virginia Business puts fiscal 2027 data center property taxes at about $1.3 billion, roughly 38 percent of the general fund. The Loudoun Coalition, working from the county's adopted budgets, puts data center exposure at 42 percent of total local tax funding in fiscal 2026, up from 3 percent in fiscal 2000. The county's own tax page says the revenue "will plateau in the next five to 10 years." The homeowner real property rate has fallen from $1.145 per $100 in 2016 to $0.805 in 2026 on the strength of it. That is the number every supervisor is weighing, whatever they say from the dais.
- For residents the fight is not abstract. The county approved the Vantage VA2 campus on Glenn Drive in Sterling in 2023 with eight natural gas turbines, and at an August 24, 2026 town hall the company said it does not expect grid power until 2040. The county says its noise readings never exceeded 55 dBA. A resident half a mile away measured 70 to 80 decibels on a hot day and wears earplugs in her own house. Which number a court believes depends on who documented what, when.
In this article
No lawsuit has been filed over Loudoun County's attempt to slow the largest data center market in the world, and the county's own website says the tool most residents are asking for does not exist. That is what makes the next three weeks worth reading closely. On March 18, 2025 the Board of Supervisors ended by-right data center development 7 to 2 and, by a separate 5 to 4 vote, grandfathered every application accepted before February 12, 2025. On July 22, 2026 it voted 6 to 1 to have staff bring back options for pausing new applications while it rewrites the rules. On September 2 it voted unanimously to ask its attorney whether it can take the grandfathering back, with an answer due October 6. The pause went before the board on September 15. Around those votes sit roughly 250 data centers, about 53 million square feet built, 17 to 23 grandfathered applications covering about 11 million more, and a county budget that draws roughly 38 percent of its general fund from the industry it is now trying to restrain. This piece lays out the dates, the votes, the statute and the county's own answers, and it says plainly what a pause can and cannot do.
What the board actually voted, and when
The record here is unusually clean because Loudoun publishes its own project history. The Data Center Standards and Locations project began on February 6, 2024. On July 2, 2024 the board approved an intent to amend the zoning ordinance. On March 18, 2025 it adopted Phase 1: data centers, previously allowed by-right in the zoning districts that made Data Center Alley possible, became a special exception use, which means a public hearing before the Planning Commission and a recorded vote of the board for every new one. That vote was 7 to 2, with Kristen Umstattd and Caleb Kershner opposed.
The same day the board took a second, closer vote. A grandfathering resolution allowed applications accepted before February 12, 2025 to keep moving under the old rules, provided the project sits more than 500 feet from residential units and is "diligently pursued." That passed 5 to 4. Mike Turner, Laura TeKrony, Juli Briskman and Sylvia Glass voted no. Loudoun Now reported 22 applications continuing under administrative review, against roughly 46 million square feet already built or permitted and about 61.5 million square feet of potential capacity.
Sixteen months later the board came back to both halves. On July 22, 2026, on Briskman's motion, it voted 6 to 1 with two absent to direct staff to prepare a pause on new data center applications, site plans and substation permits while Phase 2 of the rewrite is completed. Phyllis Randall, Briskman, TeKrony, Turner, Glass and Koran Saines voted yes; Umstattd voted no; Kershner and Matt Letourneau were absent. Staff were told to bring it to September 15. Phase 2, which rewrites the use standards and the 2019 General Plan policies for data centers and substations, is expected to take about 14 months and reach the Planning Commission in February 2027. The county has scheduled open houses on September 28 and 30, 2026, from 6:00 to 8:30 p.m.
On September 2, 2026, Briskman and TeKrony moved to rescind the 2025 grandfathering and subject the protected applications to the same special exception review as everyone else. The board did not vote on the amendment. It voted unanimously to obtain the county attorney's legal opinion first, to be presented in public at the October 6 meeting. Fox 5 reported the reason in one line: supervisors "want to avoid potential lawsuits." Randall said she wanted the public to hear the legal advice. Umstattd called the proposal reckless. Kershner called it "a ridiculous motion" that risked "billions of dollars" in litigation, and compared it to changing the rules mid-game in Monopoly.
The county has already published the answer
Loudoun's website carries a data center FAQ, and question 1802 asks whether the county can enact a moratorium on new data centers. The county's answer: the Board of Supervisors "does not have the legal authority to implement a moratorium on new data center applications." Virginia law "requires the Board of Supervisors to consider each rezoning or special exception application on its merits," and "a blanket prohibition against approval of any application for data center development, that is, a 'moratorium,' without considering each application on its individual merits, is not legally permissible."
County Attorney Leo Rogers told the board the same thing on July 22 before it voted to explore one anyway. Virginia is the strictest Dillon Rule state in the country: a locality has only the powers the General Assembly has expressly granted or that are necessarily implied from them. The Virginia Supreme Court applied that rule to exactly this situation in Board of Supervisors v. Horne, 216 Va. 113 (1975), striking down Fairfax County's attempt to stop accepting site plans and subdivision plats while it rewrote its plans. Fairfax had declared, in a January 7, 1974 resolution, that "emergency conditions" existed because of unprecedented growth; the court held that the power to require plat approval does not include the power to suspend it. Rogers said the courts have since recognized only narrow exceptions, such as temporary restrictions tied to an identifiable public emergency. Brian Winterhalter of DLA Piper told Bisnow in August that "there are relatively few states that follow the Dillon's Rule and the principles of the Dillon Rule as specifically and hold it in as high regard as Virginia."
What the county can do is the thing it already did. It can amend its zoning ordinance to make data centers a special exception use, which it did in March 2025, and it can then deny individual applications on their merits at the hearing, which it can do today for every application filed after February 12, 2025. Gregory Riegle of McGuireWoods described the lawful path as "effectively a two-step process": amend the plan, then amend the zoning to match. Some coverage has said a locality may "postpone" applications for up to 12 months. The provision being pointed at, Virginia Code section 15.2-2286, allows an ordinance to bar a substantially identical rezoning petition from being refiled for up to a year after it is decided. It is a bar on refiling, not a power to stop deciding.
The grandfathering was a choice. Undoing it is the legal fight.
Supervisor TeKrony's sentence is the sharpest thing anyone has said in this fight, and it is accurate: "We've given the data center industry 25 years to build by-right. There is no legal requirement for grandfathering. It is a choice." Nothing in Virginia law obliged the board to let pre-February 2025 applications finish under the old rules. It chose to, by one vote, and a board can ordinarily rescind a resolution it adopted.
The question the county attorney has been asked is narrower and harder. Virginia Code section 15.2-2307 protects a landowner's vested right to develop when three things are true: there has been a "significant affirmative governmental act" allowing the development, the owner relied on it in good faith, and the owner has incurred substantial expense in diligent pursuit of the project. Our reading, which is not legal advice: a board resolution that told 22 named applicants they may continue under the old rules, on the condition that they diligently pursue their projects, is a strong candidate for a significant affirmative governmental act, and the applicants who spent money in the 18 months since can point to the reliance and the diligence the statute asks for. The statute's own list of acts it deems significant is project specific: an approved rezoning, a special exception with conditions, an approved site plan or subdivision plat, a zoning administrator's written determination. A blanket resolution covering 22 applications at once is not on that list, and the list is illustrative rather than closed. That gap is the whole case. It is the shape of the "billions of dollars" Kershner was talking about, and it is why the board asked for an opinion rather than voting.
The industry's position is that the 2025 framework "provided certainty, predictability and fairness," in the words of Nicole Riley of the Data Center Coalition, and that a pause "would send a signal that the area is closed for business." QTS, Blackstone's data center arm, has pointed to $2 billion invested in the county. The Taxpayers Protection Alliance argued on August 31 that rescinding grandfathering "retroactively rewrites rules," and cited a Northern Virginia Technology Council estimate that losing the industry's tax base would mean "a 91 percent property tax increase, about $5,800 a year for the average homeowner." That figure models the revenue disappearing entirely. The Loudoun Coalition's scenarios, built from the county's own adopted budgets, model declines of 11 to 42 percent, not zero, and the county's own tax page already says the revenue will plateau.
What it is like to live next to one: Vantage VA2
The policy fight has a fence line, and it is on Glenn Drive in Sterling. The board approved the Vantage VA2 campus in March 2023 with eight natural gas turbines to run the buildings until utility power arrives. It is the only data center in Virginia running on onsite gas turbines full time. At an August 24, 2026 town hall held by Supervisor Koran Saines with Vantage and the Virginia Department of Environmental Quality, the company said it does not expect grid power until 2040. The facility is fully permitted through DEQ and, the company says, in compliance with the zoning ordinance.
The dispute is about what the permit does not measure. Saines told residents the county's own readings never exceeded 55 dBA. Kasey Hatch, who lives about half a mile away, measured 70 to 80 decibels on an 87 degree day and told Loudoun Now she wears earplugs around her house. "As soon as the weather started getting warmer" the turbines became "intolerably loud." Vantage says it is "actively working with third-party engineers to explore additional sound mitigation options" and that the turbines are temporary pending grid connection, which on its own timeline is fourteen years away. The Piedmont Environmental Council commissioned a health impact report on the site in February 2026 and counts more than 5,000 backup generators across the county.
This is the pattern our noise guide and generator guide describe: an operator with a valid permit, a county measurement taken somewhere and sometime, and a resident measurement taken at the property line on the day it was worst. In a nuisance claim the second one is the evidence, and it only exists if someone kept it. For what to record and how, see documenting data center harm.
What a resident can actually do in the next three weeks
Nothing about this fight needs a lawyer yet, and the dates that matter are public.
- September 28 and 30, 2026, 6:00 to 8:30 p.m. The county's Phase 2 open houses. Phase 2 is where the actual use standards for noise, generators, setbacks and substations get written, and it does not reach the Planning Commission until February 2027. Comments made now shape the draft.
- October 6, 2026. The county attorney's opinion on rescinding the grandfathering, presented in public at the board's request. If the opinion is that vested rights bar rescission, the 11 million square feet proceeds under the old rules and the pause is beside the point. If it is that rescission is lawful, expect a vote and expect litigation.
- Every special exception hearing. Since March 2025 each new data center needs one. The board can deny on the merits at any of them without a moratorium, and the Planning Commission has already recommended denial of the Spring Valley Technology Park, 325 acres, 3.54 million square feet and 780 megawatts on Evergreen Mills Road near Beaverdam Reservoir, 5 to 0 on July 23, 2026, on the ground that it is "a fundamental departure" from the transitional residential uses the plan envisions there. Our registry lists the six Loudoun sites still proposed or permitted, including Cross Mill Center, which residents are already contesting.
- The list itself. The county has not published the current set of grandfathered applications. It is a public record. A request to the Department of Planning and Zoning for every data center application accepted before February 12, 2025 and still under administrative review is the single most useful document a neighborhood group could hold on October 6. Our guide to fighting a proposed data center has the request language.
If the grandfathering is rescinded and an operator sues, the case will be about vested rights and the county, not about neighbors. If it is not rescinded and a grandfathered campus is built next to you, the case that eventually matters is the one Kasey Hatch is building on Glenn Drive: a record of what the facility does, measured at the property line, dated. Our guide to what it takes to get an injunction explains why that record decides whether a court will act.
Frequently asked questions
Is there a lawsuit over the Loudoun County data center pause?
No. As of September 16, 2026 no lawsuit has been filed. The Board of Supervisors voted 6 to 1 on July 22, 2026 to have staff bring back options for a pause, took the item up on September 15, and voted unanimously on September 2 to obtain the county attorney's opinion on rescinding the 2025 grandfathering, due October 6. Supervisor Caleb Kershner has said rescission would risk billions of dollars in litigation; no operator has sued.
Can Loudoun County legally impose a moratorium on data centers?
The county's own FAQ says no. Question 1802 on loudoun.gov states the board does not have the legal authority to implement a moratorium on new data center applications, because Virginia law requires each rezoning or special exception to be considered on its merits and a blanket prohibition is not legally permissible. County Attorney Leo Rogers told the board the same in July 2026, citing the Dillon Rule and Board of Supervisors v. Horne, 216 Va. 113 (1975), which struck down a Fairfax County moratorium on site plans.
What does grandfathering mean in Loudoun's data center rules?
On March 18, 2025 the board ended by-right data center development 7 to 2, so new projects need a special exception with a public hearing and a board vote. By a separate 5 to 4 vote it let applications accepted before February 12, 2025 finish under the old rules if they sit more than 500 feet from homes and are diligently pursued. Loudoun Now counted 22 such applications then; Virginia Business counted 17 in September 2026, representing about 11 million square feet.
Would a pause stop the grandfathered data center projects?
No. The county attorney's position is that a pause could not lawfully affect projects already under review, and the grandfathered applications are under review. A pause would apply to new applications, which since March 2025 already require a special exception and a board vote. The only lever on the grandfathered square footage is rescinding the grandfathering resolution, which is the question the county attorney was asked to answer by October 6.
How much of Loudoun County's budget comes from data centers?
Virginia Business reports about $1.3 billion in data center real and personal property tax projected for fiscal 2027, roughly 38 percent of the general fund. The Loudoun Coalition's analysis of the county's adopted budgets puts data center exposure at 42 percent of total local tax funding in fiscal 2026, up from 3 percent in fiscal 2000. The county's own tax page says the revenue will plateau in the next five to ten years. Data center equipment is taxed at $4.15 per $100 of assessed value; the homeowner real property rate is $0.805 per $100 in 2026, down from $1.145 in 2016.
Why is the Vantage data center in Sterling running on gas turbines?
The board approved Vantage VA2 on Glenn Drive in March 2023 with eight natural gas turbines to power it until utility service arrives. At an August 24, 2026 town hall the company said it does not expect grid power until 2040. It is permitted through the Virginia Department of Environmental Quality. The county says its noise readings never exceeded 55 dBA; a resident half a mile away measured 70 to 80 decibels on a hot day. Vantage says it is working with engineers on additional sound mitigation.
What can Loudoun residents do before October 6?
Attend the Phase 2 open houses on September 28 and 30, 2026, from 6:00 to 8:30 p.m., where the use standards for noise, generators, setbacks and substations are being drafted. Request from the Department of Planning and Zoning the current list of data center applications accepted before February 12, 2025 and still under review; it is a public record and the county has not published it. Speak at the special exception hearing for any new site near you, since the board can deny on the merits at each one. And if a facility is already operating nearby, keep dated noise readings at the property line.
Article sources
Our editorial standards require primary sources: government publications, regulator data, company filings, and established industry research.
- 1.Loudoun County: Data Center Standards and Locations project page, with the February 6, 2024 initiation, July 2, 2024 intent to amend, March 18, 2025 Phase 1 adoption, the February 12, 2025 grandfathering cutoff, the September 28 and 30, 2026 open houses and the February 2027 Planning Commission target
- 2.Loudoun County FAQ 1802: Can Loudoun County enact a moratorium on new data centers? The county's statement that the board does not have the legal authority and that a blanket prohibition is not legally permissible
- 3.Loudoun County: Data Centers, Tax Revenues and County Budget, with the $4.15 per $100 personal property rate, the real property rate reduction from $1.145 in 2016 to $0.805 in 2026, and the statement that data center revenue will plateau in the next five to ten years
- 4.Loudoun County: Board of Supervisors adopts fiscal year 2027 budget, April 7, 2026, with adopted tax rates
- 5.Loudoun Now: By-right data centers eliminated in Loudoun, existing applications grandfathered, March 18, 2025, with the 7 to 2 and 5 to 4 votes, the 500 foot and diligently pursued conditions, 22 applications, 46 million square feet built or permitted and 61.5 million square feet potential
- 6.Virginia Business: Loudoun supervisors mull data center moratorium, July 22, 2026, with the 6 to 1 vote and names, County Attorney Leo Rogers on the Dillon Rule and the 1975 Fairfax decision, roughly 250 data centers and more than 100 in the pipeline
- 7.Virginia Business: Loudoun seeks legal opinion before ending data center grandfather protections, September 2026, with 17 applications representing about 11 million square feet, the unanimous vote for a legal opinion by October 6, the $1.3 billion fiscal 2027 figure at about 38 percent of the general fund, and the Umstattd, Kershner, Briskman, TeKrony and Randall positions
- 8.WTOP, carrying Virginia Mercury: Loudoun to consider data center pause, removing by-right grandfather clause, September 14, 2026, with the Briskman and TeKrony quotes
- 9.Fox 5 DC: Vote delayed on proposal to halt Loudoun County data center projects, September 2, 2026, with the 23 count, the October 6 return date and the reason given
- 10.Technical.ly: Loudoun County weighs ending grandfathered data center exemptions, September 3, 2026, with supervisor, resident and Data Center Coalition quotes and the 42 percent fiscal 2026 figure
- 11.Bisnow: The world's largest data center hub pursues a development pause. Is it even legal? August 4, 2026, with the DLA Piper and McGuireWoods analysis, 53 million square feet built and 40 million in the pipeline, and the Data Center Coalition and QTS positions
- 12.MLQ News: Loudoun County moves toward data center moratorium, rejects 780MW Active Infrastructure campus, July 27, 2026, with the Spring Valley Technology Park figures and the Planning Commission's 5 to 0 recommendation of denial
- 13.Loudoun Now: Sterling residents raise alarms over off-grid data center, April 16, 2026, with the eight turbines, the 55 dBA county reading, the 70 to 80 decibel resident reading and the Vantage statements
- 14.Piedmont Environmental Council: Are data centers in Loudoun County finally at a tipping point? September 9, 2026, with the August 24 town hall, the 2040 grid date, 5.33 gigawatts of current demand, and more than 5,000 backup generators (advocacy source)
- 15.Taxpayers Protection Alliance: Watchdog slams proposed Loudoun County restrictions on data centers, August 31, 2026, with the county attorney's position on projects under review and the NVTC homeowner tax estimate (advocacy source)
- 16.Loudoun Coalition: Loudoun's Fiscal Strategy FY2027 to FY2030, October 2025, built from the county's adopted budgets, with data center exposure rising from 3 percent to 42 percent of total local tax funding and four decline scenarios
- 17.Board of Supervisors of Fairfax County v. Horne, 216 Va. 113, 215 S.E.2d 453 (June 13, 1975): the Virginia Supreme Court holds that a county's power to require site plan and subdivision approval does not include the power to suspend accepting applications, striking a Fairfax resolution of January 7, 1974 that had declared emergency conditions from rapid growth
- 18.Code of Virginia section 15.2-2286: permitted provisions in zoning ordinances and amendments, including the one year bar on refiling a substantially identical petition
- 19.Code of Virginia section 15.2-2307: vested rights not impaired; the significant affirmative governmental act, good faith reliance and diligent pursuit test
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