Data center developer tactics

Governing walks through the tactics employed by data center developments. They identify 4 tactics including:

(1) Utilizing zoning in places that have no zoning or limited public participation.

(2) $$$. Money, money, money like the ABBA song. Remember the 6 figure volunteer fire fighter donation that was declined in Oklahoma? Or, the offered $10,000 per household in a rural Pennsylvania township.

(3) lawsuits/the threats of lawsuits

(4) Secrecy such as non-disclosure agreements.

Anatomy of Oklahoma’s data center development policies

Oklahoma City & the Seminole Nation have enacted data center development moratoriums.

The Legislature is working to balance the concerns of residents with the needs of data center development. To that end, while working through this Republican lawmakers have said things like to be clear I am not on the side of data centers, but I believe, as usual, the answer is somewhere in the middle.

As for water and utilities, ensuring water of Oklahomans, and not passing on electric rate increases to consumers are at the forefront.

In 2025, Oklahoma passed  Senate Bill 480 that allows data centers to build their own power plants, bypassing utilities. 

Oklahoma Voice

Data center development force majeure notice

“Oracle has sent a force majeure notice to the developer of Project Jupiter, a Stargate data center campus in New Mexico, Bloomberg first reported Thursday.”

Tech Crunch explains that ‘the notice would allow the company to delay payments should the facility miss its 2028 target to come online.”

What’s happening? Regulators delayed a gas pipeline permit for 6 months.

Inverse condemnation from wildfires

California has limited liability from wildfires for water systems. If a water system cannot maintain systems during a wildfire there had been liability issues. SB 1153, signed by the Governor, would limit liability of any public water system that is unable to “maintain water supply or water pressure during a wildfire from being considered a substantial cause of the damages resulting from a wildfire.”

Nossaman LLP