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A Texas judge stopped one town from voting on a data center because the neighboring town's residents sued first — the buildings would have sat a few hundred feet from their backyards. In Michigan, a developer sued a city right back for blocking its project. In Montana, 3,652 signatures and a deadline that quietly moved may decide whether data centers reach the November ballot. Here's what actually moved.

COMMUNITY — A Tarrant County judge issued a temporary restraining order blocking Westlake, Texas officials from voting on, approving, or taking any action on the Circle T data center, after the Lakes at Marshall Ridge Homeowners Association and two residents sued. The project would place roughly 1.1 million square feet of buildings on about 88 acres off Highway 377, as close as a few hundred feet from Keller backyards. Keller's city council voted unanimously to hire outside counsel and begin the process for a 90-day local moratorium; Mayor Ross McMullin said all legal options are on the table. Westlake defends the site as industrially zoned and says it would raise town revenue 14%.

⚖️ LEGAL — The developers behind a proposed 100MW data center on the former McLouth Steel site in Gibraltar, Michigan sued the city in the U.S. District Court for the Eastern District of Michigan. Raeden Acquisitions and Cal Realty argue Gibraltar's one-year moratorium was adopted only after they submitted their site plan and was designed specifically to stop the project. They say the use is already permitted under existing zoning and that the city improperly enacted the pause as a resolution rather than an ordinance. The complaint alleges due process and equal protection violations and an improper taking of property rights, and asks a judge to declare the moratorium invalid and order the plans approved.

⚖️ LEGAL — A Butte-Silver Bow County district court judge is weighing whether 3,652 signatures gathered by the group 406 People First can still put data centers on the November ballo

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Transcript
00:00A Texas judge just stopped one town from voting on a data center because the neighbors filed suit first, and
00:08the buildings would have sat about 506 feet from their backyards.
00:13In Michigan, a developer is suing a city right back for blocking its project.
00:19And in Montana, 3,600 signatures and one deadline that quietly moved may decide whether data centers reach the November
00:29ballot.
00:30We start in North Texas, where the fight over a data center has become a fight between two towns.
00:38Judge Kimberly Fitzpatrick of the 342nd District Court issued a temporary restraining order blocking Westlake officials from voting on, approving,
00:49or taking any action on the Circle T data center.
00:53After the lakes at Marshall Ridge Homeowners Association and two residents filed suit,
00:58The project would place roughly 1.1 million square feet of buildings on about 88 acres off Highway 377, as
01:08close as a few hundred feet from Keller backyards.
01:12Keller City Council voted unanimously to hire outside council and begin the process for a 90-day local moratorium.
01:21Mayor Ross McMullin said every legal option is on the table.
01:25Westlake defends the site as industrially zoned and says it would lift town revenue 14 percent.
01:32But not every developer waits to be sued.
01:36Some of them sue first in Gibraltar, Michigan.
01:40The developers behind a proposed 100-megawatt data center on the former McLeod Steel site have taken the city to
01:48federal court.
01:50Raiden Acquisitions and Cal Realty filed a lengthy complaint in the United States District Court for the Eastern District of
01:58Michigan,
01:58arguing that Gibraltar's one-year moratorium was adopted only after they submitted their site plan
02:05and was designed specifically to stop their project.
02:09They say the use is already permitted under existing zoning
02:13and that the city improperly enacted the pause as a resolution rather than an ordinance.
02:19The complaint alleges due process and equal protection violations and an improper taking of
02:25property rights and asks a judge to declare the moratorium invalid and order the plans approved.
02:33Courts are becoming the venue of choice and residents are using them, too.
02:39In Butte, Montana, the question in front of a district court judge is whether 3,652 signatures still count.
02:49The group 406 people first delivered them,
02:52and the county clerk accepted the petition on July 31st.
02:56Ten days later, the initiative was
02:58rejected for failing to meet requirements under a Montana law adopted in late 2025,
03:05and the group was told the real deadline had been July 13th all along.
03:11Not August 14th,
03:13Judge Frank Joseph has already issued a temporary restraining order barring the city county from
03:19destroying or segregating the petition sheets or treating the initiative as finally rejected.
03:26Attorney John Meyer argues the statute itself is unconstitutional
03:31and that the power of initiative belongs to residents rather than the legislature.
03:36A ruling is expected within days.
03:39Out West, one county did not wait for a court.
03:44Nye County, Nevada simply banned them.
03:48Commissioners voted 5 to nothing to prohibit data centers in the Pahrump Valley and Basin 1.
03:5462.
03:56After a meeting that drew hundreds of attendees and more than two hours of public comment,
04:01even with a two-minute limit per speaker.
04:04Commissioner Ian Bain, who made the motion,
04:08amended it so the ban covers the Pahrump groundwater basin rather than the entire county.
04:13A scope commissioner Bruce Jabbour said he preferred,
04:17since other parts of Nye may still welcome the industry.
04:21Resident Teresa Reddell told the board the community had grown frantic over the issue.
04:27Commissioners separately voted 4 to 1 to schedule a hearing on a companion bill creating land.
04:33Use rules and special use permitting elsewhere in the county.
04:38A proposal for a countywide special election died without a motion.
04:42Groundwater is the thread running through all of this.
04:47Nowhere more so than Piedmont, Oklahoma,
04:50where residents need 172 valid signatures to force a public vote.
04:56Three citizen initiative petitions are circulating.
05:00One pairing a temporary moratorium with impact studies.
05:04One setting hard limits on noise.
05:06And one requiring citizens to approve any project based on those study results.
05:12The target is Project Open Sky,
05:15a cloverleaf infrastructure campus that would rezone roughly 630 acres for about a
05:21billion dollars in investment and as many as 500 permanent jobs.
05:27Resident Ali Taylor says water is the central concern in an agricultural town.
05:33And that it should go to farming and livestock rather than industrial cooling.
05:38Cloverleaf chief executive David Berry counters that the design uses closed-loop cooling.
05:44Comparing it to an air conditioner.
05:47The Planning Commission has recommended denial.
05:50State governments are now writing rules of their own.
05:55Pennsylvania's is the strictest yet.
05:57Governor Josh Shapiro signed an executive order directing the Department of Environmental
06:03Protection to refuse to even review a data center permit application unless the developer has made
06:10a legally binding commitment to the state's responsible infrastructure development requirements and
06:16has already secured local government approval.
06:20Those requirements cover energy affordability, environmental protection,
06:26workforce and economic development, transparency and community engagement.
06:31The order also removes AI data center proposals from Pennsylvania's fast-track permitting process
06:38entirely and prohibits the use of non-disclosure agreements on these projects.
06:44The secrecy that has defined so many of them.
06:48Shapiro said the state is tracking roughly 100 proposals, only about five of which actually hold
06:54permits and called many of them poorly planned.
06:58He signed it after the legislature declined to pass the standards itself.
07:03Another governor spent this week apologizing for a process.
07:09Utah's Spencer Cox told reporters at his monthly news conference that the approval process behind
07:15the Stratus Data Center in Box Elder County was, in his words, not good, and that the Military
07:23Installation Development Authority that shepherded it needs major reform.
07:29MIDA was created to handle development around military installations.
07:34Cox says it has suffered mission creep.
07:36And he wants the governor's office given a larger role when lawmakers return to the capital in
07:42January.
07:44This is a notable shift.
07:46Cox once defended the Stratus project, which is backed by the investor Kevin O'Leary.
07:52Partly on national security grounds.
07:55Before public pushback softened his tone, he has since signed a separate executive order
08:01creating a statewide framework for evaluating large data centers, prioritizing water, the
08:09Great Salt Lake, ratepayers and air quality.
08:12And yet the capital keeps arriving anyway.
08:16In the Texas panhandle, Infratech Capital is advancing a $2.7 billion data center campus
08:24across more than 5,000 acres in Carson County.
08:28Just outside Amarillo, the firm is assembling a consortium of institutional investors, with
08:35a major hyperscaler expected to serve as anchor tenant.
08:39Though the anchor, the counterparty and the co-investors all remain undisclosed until definitive
08:45agreements close.
08:47Beyond the campus itself, Infratech says it will fund expanded fiber-optic cable manufacturing
08:54capacity, adding new production lines with a global manufacturing partner to supply this
09:00platform and other large-scale digital infrastructure projects.
09:05There is no final investment decision and no announced construction start date.
09:10It is a reminder that while towns argue over setbacks, groundwater basins and petition
09:17deadlines, the money behind these campuses is still being raised at a scale most local
09:22governments have never had to answer.
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