Bucky Blog
Data Center Moratoriums and Zoning Reform: A 2027 State-by-State Outlook for Developers
Data center permit pauses, large-load power rules and housing zoning reform, with dated sources and a 50-state reference for developers.

Bucky Blog
Data center permit pauses, large-load power rules and housing zoning reform, with dated sources and a 50-state reference for developers.

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As of November 6, 2026, verified state-level data center moratorium actions include New York's pause on covered DEC permits and Texas's TCEQ permit pause pending an ERCOT audit. Oregon separately pauses unapproved state-property requests. Seattle (Washington), Reno (Nevada) and Lexington (Kentucky) have local moratoriums. These are different restrictions, not a single list of states banning every data center.[9][7][5][3][1][40]
For a 2027 site decision, identify the approval being withheld, the project threshold, the utility territory and the release condition. A housing upzoning can improve residential yield on nearby land while a data-center tariff makes the industrial alternative harder to finance. This outlook compares those approval paths.
Four different constraints on a site
Permitting
An approval is paused
Check which agency, application stage and expansion work the moratorium covers. A pause on one permit is not a closure order.
Electric service
Capacity comes with obligations
Price deposits, minimum bills, upgrade costs, exit fees and curtailment before assuming a service date.
Underwriting
A subsidy may be unavailable
Removing an incentive changes project economics. It does not, by itself, prohibit construction.
Alternative use
Housing may gain a clearer path
Test the applicable housing approval route, effective date and site exclusions before counting additional units.
| Jurisdiction | Classification | What to check before committing land |
|---|---|---|
| New York | State environmental-permit moratorium | DEC application completeness before July 14, 2026; EO 62 coverage and GEIS status. |
| Texas | TCEQ permit pause pending review | Permit applicability, audit status and the separate utility interconnection path. |
| Oregon | State-property request pause | Whether access, easements or project land require an unapproved state transaction. |
| Seattle, Washington | City land-use moratorium | Ordinance 127447 and the facility definition, including the reported 20 MVA threshold. |
| Reno, Nevada | City conditional-use application moratorium | City boundaries and the earlier of new adequate regulations or August 31, 2027. |
| Lexington, Kentucky | Local development moratorium | Fayette County covered permits, development plans and zone changes through October 31, 2027. |
| Illinois | New incentive applications paused |
The official records for these classifications are the source of the scorecard. A project needs its own coverage analysis, particularly where permits were already complete or a campus is expanding.[40][10][11][9][7][5][3][1]
Executive Order 62 holds covered DEC discretionary applications for data center construction or expansion in abeyance if DEC had not determined them complete before July 14, 2026. The release condition is the final generic environmental impact statement and findings. Local-government approvals are outside that provision; the governor's announcement describes a pause of up to one year.[2][1]
Read the Texas data centers guide for SB 6, ERCOT large-load connections and a site diligence checklist.
The September 21, 2026 directive tells TCEQ to pause permits related to data center projects until ERCOT completes its review. It is a permitting action tied to an audit, not an instruction to shut down every operating facility. The letter also seeks additional statutory safeguards; proposed incentive elimination should not be reported as enacted.[3]
SB 6 separately directs large-load interconnection standards for the ERCOT region, with a statutory starting threshold of 75 MW that the commission may lower. It addresses cost contributions, financial commitments and reliability. Confirm the current implementing rules and the project's utility territory rather than applying one statewide tariff.[4]
The September 8, 2026 direction pauses unapproved requests for state-property rights and transactions supporting data centers, including easements and land-use permits. Its stated endpoint is July 1, 2027 unless superseded. The governor explicitly distinguishes this action from a statewide development moratorium. A private site still needs review of any state-land dependencies.[5]
Seattle passed Council Bill 121214 on June 9, 2026 and the mayor signed Ordinance 127447 on June 11. It pauses covered applications for new facilities, expansion and changes of use. City Light describes a one-year pause for facilities above 20 MVA. MVA and MW are different measures; confirm the ordinance definition for the proposed electrical design.[8][7]
Reno is not accepting data center conditional-use applications through August 31, 2027, or until adequate regulations are adopted. The city says every new data center in Reno requires that permit. This is a City of Reno restriction; it does not establish a Nevada-wide prohibition.[9]
The legislature sustained the veto of LD 307 on April 29, 2026. Maine instead established a Data Center Advisory Council with recommendations due January 29, 2027. A campaign promise or a later proposal needs its own enacted instrument before this article can classify it as a statewide moratorium.[10]
Executive Order 2026-05 changed state permitting in August 2026. Pennsylvania's current GRID guidance links the review path to enforceable commitments and local approvals, and removes AI data centers from fast-track permitting. Treat this as a conditional permitting framework. It is not evidence that all Pennsylvania data centers are banned.[15]
DCEO's current program page says new incentive applications stopped being processed July 1, 2026 under the governor's June 5 direction. That is an incentive-program restriction. Verify the final status and operative text of any POWER Act proposal separately before adding new water, energy or siting obligations to a project model.[11]
Florida signed SB 484 on May 7, 2026, preserving local siting authority and adding utility-cost and water protections. Missouri's PSC lists approved Ameren and Evergy large-load tariffs, while Liberty's tariff case remains in progress. Utah's official summary identifies separate energy-contract review, water-reporting and incentive-zone requirements. None of those instruments alone supports a blanket state-ban label.[18][17][16]
The tariff and service agreement are underwriting documents. Ask for the demand threshold, ramp period, minimum bill, collateral, upgrade contribution, exit payment and curtailment obligations. Model delayed energization and a tenant taking less power than contracted. A nearby substation is a diligence lead, not a capacity commitment.
Ohio's Consumers' Counsel reports that PUCO approved the AEP Ohio settlement on July 9, 2025. Covered new large data centers must pay for at least 85% of contracted capacity for up to 12 years even if consumption is lower; the agency also reports an appeal. Read the applicable tariff and case status. This is not a rule for every Ohio utility.[12]
The SCC's November 25, 2025 order creates Dominion's GS-5 class for customers demanding at least 25 MW, effective January 1, 2027. Its summary specifies minimum payments of 85% of contracted distribution and transmission demand and 60% of generation demand for covered customers. Apply the approved service terms to the project, not a statewide average power price.[13]
The Georgia PSC's 2025 annual report describes special Georgia Power terms for new customers using more than 100 MW, including infrastructure cost recovery, minimum bills and contracts of up to 15 years. The commission reviews covered contracts. Those terms concern electric service; they do not replace county zoning or water approvals.[14]
Oregon's 2025 POWER Act directs a separate rate class for covered large energy-use facilities. Texas SB 6 supplies a different interconnection framework. Confirm each project's current tariff and implementing orders, since an enabling statute is not a quoted electricity price.[4][6]
Upzoning allows more development capacity. A by-right approval route can also reduce discretion without changing every dimensional standard. For a residential alternative to an industrial land bid, test permitted uses, density, infrastructure, affordability conditions and effective dates separately.
SB 840 governs qualifying mixed-use and multifamily projects in specified municipalities and commercial settings. It is not permission to put apartments on every industrial parcel. Check municipal coverage, excluded sites and the detailed development standards before comparing residual land values.[24]
California's 2025 AB 130 and SB 131 reforms streamline environmental review for qualifying housing and infrastructure, including infill and certain housing-element rezonings. Exemptions have conditions. A CEQA path still needs to be matched to the site's land-use permissions and other approvals.[19]
HB26-1001 was signed March 25, 2026. Its summary starts the qualifying-property administrative approval requirement on December 31, 2027, with a June 30, 2028 allowance for jurisdictions actively updating their codes. Do not price that future route as an approval available today.[20]
Delaware's October 2026 announcement covers the Housing for Every Delawarean Act and ROAD-DE Act. Maryland's SB 325 record confirms the Housing Certainty Act became Chapter 590. Washington Commerce publishes middle-housing guidance and model ordinances. For each, verify the operative provision, local implementation and project eligibility rather than treating the policy title as an entitlement.[23][22][21]
Use Bucky's Texas lot-buying checklist for parcel diligence, and the feasibility studies topic for how to carry assumptions into a site review.
Keep scheduled legal changes separate from editorial review dates. This timeline includes two internal checkpoints so readers can see when the snapshot should be rechecked; those checkpoints do not assert that a government will act.
Happened: Policy snapshot reviewed
Bucky editorial checkpoint. Record the instrument, scope, source and next trigger; do not infer policy from an election win.
Expected: Monthly source and audit-status review
Planned editorial checkpoint, not a promised Texas reopening. Recheck orders and record material changes in corrections.
Expected: Dominion GS-5 rate class begins[13]
Each state entry names the specific record reviewed and the next project-level check. A tax-program page, introduced bill or historic hearing record does not establish a state's complete current policy. This reference is not an exhaustive local-moratorium inventory or a legal clearance. Local zoning, utility territory and parcel approvals require a separate site review everywhere.
Reviewed scope: Revenue guidance includes data-processing-center abatements. Check qualifying investment, tax type and the local grant; an abatement is not a siting approval.[30]
Reviewed scope: DEC describes existing air, water, waste and other permitting pathways based on project design. Review onsite generation and cooling discharges rather than assuming cold weather removes permit requirements.[31]
Reviewed scope: The attorney general's August 31, 2026 statement calls for legislation to pause approvals. That statement is a proposal, not the enacted pause itself. Check incentive certification and any later law separately.[32]
Reviewed scope: AEDC describes amendments to the data-center sales and use tax exemption. Check the qualifying investment and certification record before budgeting equipment or construction tax savings.[33]
Reviewed scope: Housing review reform. Match AB 130/SB 131 eligibility to the parcel; data-center policy review remains separate.[19]
Reviewed scope: Housing law enacted; later implementation. Administrative route starts December 31, 2027, with specified extension; verify land and owner qualifications.[20]
Reviewed scope: DECD describes an agreement-based data-center tax incentive tied to investment requirements. Confirm eligibility and subsequent legislative changes; a program page does not clear local zoning or utility service.[34]
Reviewed scope: Housing package reviewed. Check operative SB 23/ROAD-DE provisions and local implementation.[21]
Reviewed scope: Data-center law signed. Review SB 484 utility, water and local land-use requirements.[16]
Reviewed scope: Georgia Power service rules. Check covered large-load contract and local siting approvals separately.[14]
Reviewed scope: Hawaii County's planning record lists Bill 170 on data-processing facilities and centers. Check the final county ordinance and applicable island jurisdiction. A hearing record is not proof of an enacted statewide ban.[35]
Reviewed scope: Commerce describes an exemption for qualifying server equipment and construction materials. Confirm the statute, investment and employment tests, and current certification before applying it to a project.[36]
Reviewed scope: Incentive applications paused. Re-underwrite subsidy assumptions; this program notice is not a construction ban.[11]
Reviewed scope: IEDC describes a qualified data-center equipment and energy exemption with investment-dependent terms. Obtain the award and the serving utility's contract; incentive eligibility is not an interconnection commitment.[37]
Reviewed scope: Revenue guidance distinguishes exemption and refund procedures for data-center businesses. Confirm the applicable statutory category and investment evidence rather than treating a political proposal as a change to the tax treatment.[38]
Reviewed scope: Commerce describes the 2025 SB 98 program and its incentive-agreement and certification process. Review the separate electric-service terms; an executed tax agreement does not guarantee energization.[39]
Reviewed scope: Lexington's official update says the October 8, 2026 extension pauses covered permits, development plans and zone changes in Fayette County through October 31, 2027. This is a local restriction, not a Kentucky-wide ban.[40]
Reviewed scope: Revenue identifies LED certification as a condition for the data-center exemption. Confirm the project's agreement, current ratepayer conditions and electric-generation approvals rather than assuming a subsidized site has a complete approval package.[41]
Reviewed scope: Statewide bill veto sustained. Review local restrictions and the January 29, 2027 advisory recommendations.[10]
Reviewed scope: Housing Certainty Act enacted. Check Chapter 590's operative protections and project eligibility; data-center review remains separate.[22]
Reviewed scope: EO 658 places conditions on state permits for covered projects above 25 MW, including framework conformance and a community benefits agreement. Read the order's scope and exceptions; conditional permitting is different from a blanket statewide prohibition.[42]
Reviewed scope: Enterprise incentive framework. Confirm certification and applicable permit requirements; incentives do not clear local siting.[26]
Reviewed scope: Revenue directs applicants to qualified-data-center tax rules and DEED's designation process. Check the applicable large-scale category, current conditions and municipal moratoriums independently.[43]
Reviewed scope: The January 2026 tax booklet describes a Data Center Enterprises Exemption. Treat it as dated incentive guidance and check amendments, certification and local approvals before assuming tax savings.[44]
Reviewed scope: Utility-specific large-load tariffs. Use the serving utility's approved tariff; Liberty's case remains in progress.[17]
Reviewed scope: The governor's notice describes NorthWestern's proposed large-new-load tariff and state intervention. Confirm the PSC's final order and tariff sheets; the filing alone does not establish an approved 5 MW service rule.[45]
Reviewed scope: ImagiNE incentive access ended. Review the executive order and county approvals rather than assuming a statewide permit ban.[25]
Reviewed scope: Local pause reviewed: Reno. Confirm city boundary and conditional-use application coverage; not a statewide finding.[9]
Reviewed scope: In an October 19, 2026 interview, the governor discussed proposing a moratorium in the next budget. This is a stated policy proposal, not evidence of a moratorium already in force. Require enacted text before changing the site's legal classification.[46]
Reviewed scope: Chapter 32 directs BPU standards and utility tariff implementation for large data centers, including aggregation and a size designation no greater than 50 MW. Check the implementing order and utility filing; the law does not supply one uniform statewide electricity rate.[47]
Reviewed scope: NMED maintains a public air-permit record for the YGI Microgrid associated with Project Jupiter. Check the current application and hearing orders. A project-specific permit dispute or campaign promise is not proof of a statewide data-center moratorium.[48]
Reviewed scope: DEC permit pause. Check application completeness and EO 62's GEIS release condition.[1]
Reviewed scope: NCDOR's 2026 notice distinguishes repealed electricity exemptions from exemptions for other items at certified datacenters. Recalculate electricity tax using the notice's billing-period rules; do not assume all equipment incentives were repealed.[49]
Reviewed scope: The Tax Commissioner lists a qualified-data-center equipment and software exemption. Check facility qualification and the purchase category, along with power, water and local land-use approvals.[50]
Reviewed scope: AEP Ohio tariff settlement. Verify territory, contracted demand, term and current appeal status.[12]
Reviewed scope: The codified definition covers specified new facilities adding at least 75 MW after July 1, 2026, per facility or aggregated behind one interconnection. Read the full act and supplier terms before applying cost-recovery obligations.[51]
Reviewed scope: State-property pause and POWER Act. Check state-land dependencies and utility tariff; not a blanket private-land moratorium.[5]
Reviewed scope: GRID permitting framework. Confirm the local-approval sequence and enforceable commitments.[15]
Reviewed scope: S 0921's March 2025 introduced text proposes a qualified-data-center incentive. Introduced bill text is not evidence that an exemption became law. Verify subsequent enactment and current tax treatment before underwriting a benefit.[52]
Reviewed scope: The September 2025 manual describes a certified-datacenter exemption. Check the current code, later amendments and certification deadline; the dated manual alone cannot clear a 2027 project.[53]
Reviewed scope: The SB 135 session law addresses data-center utility costs and regulatory authority, including water-provider review. Apply the enacted text rather than a rejected moratorium amendment or a blanket 'open' label.[54]
Reviewed scope: Public Chapter 961 generally prohibits municipalities or electric utilities from absorbing covered data-center electrical infrastructure costs. Confirm facility coverage and all generation and environmental permits; this record does not justify saying onsite generation has no review.[55]
Reviewed scope: TCEQ permit pause; SB 6 and SB 840. Resolve audit/permit status, electric service and any alternative housing route independently.[3]
Reviewed scope: Energy, water and incentive conditions. Check contract review, water reporting and development-zone eligibility.[18]
Reviewed scope: H.727 veto sustained. Do not apply the vetoed bill as law; check subsequent legislation and local rules.[28]
Reviewed scope: Dominion GS-5 change scheduled. Reprice covered service from January 1, 2027 and check later orders.[13]
Reviewed scope: Local pause: Seattle; housing guidance. Check Ordinance 127447 within Seattle and local housing code outside it.[7]
Reviewed scope: Certified high-impact program. Test certification and the precise local-preemption provisions; do not assume every facility qualifies.[29]
Reviewed scope: Qualified incentive certification. Check WEDC certification and current tax guidance separately from land-use approvals.[27]
Reviewed scope: The legislative briefing describes the equipment exemption and Business Council job certification. Check current statutory eligibility and project permits. An incentive description does not establish that a proposed campus has all approvals.[56]
As of November 6, 2026, reviewed state actions include New York's covered DEC permit pause and Texas's TCEQ permit pause. Oregon restricts unapproved state-property requests. Seattle and Reno have local moratoriums. These examples are scoped restrictions, not a complete inventory of states banning every data center.[9][7][5][3][1]
As of November 6, 2026, Texas's September 21 directive pauses TCEQ permits for data center projects pending ERCOT review. It does not order every operating data center to close. SB 6 separately governs large-load interconnection standards. Confirm the project's permit status, service territory and implementing rules before assuming approval.[4][3]
As of November 6, 2026, Seattle's moratorium is a city land-use action under Ordinance 127447. City Light describes a one-year pause on siting data centers using more than 20 MVA. That does not establish a Washington-wide ban. Check the city's definition, expansion provisions and any later amendments for the project.[8][7]
As of November 6, 2026, upzoning and housing approval reforms still have eligibility conditions and implementation dates. Colorado's HB26-1001, for example, starts its qualifying-property approval requirement in late 2027, with a specified extension into 2028. Check the actual effective provision, local code, infrastructure and site exclusions before counting new units.[20]
State environmental permit pause and GEIS announcement↩︎
Published July 14, 2026 · Accessed November 6, 2026
SB 6, enrolled text, 89th Regular Sessionabc
Accessed November 6, 2026
2025 legislative report: HB 3546 POWER Act↩︎
Accessed November 6, 2026
Getting ahead of data center power demandsab
Published June 12, 2026 · Accessed November 6, 2026
Data Center Advisory Council and sustained LD 307 vetoabc
Published April 29, 2026 · Accessed November 6, 2026
Data Center Investment Program application pauseabc
Accessed November 6, 2026
Data center costs, PUCO case 24-0508-EL-ATAab
Accessed November 6, 2026
GS-5 large-load class begins January 1, 2027ab
Published November 25, 2025 · Accessed November 6, 2026
2025 annual report, data center billing rules, printed page 65ab
Published May 12, 2026 · Accessed November 6, 2026
GRID requirements and data center permittingab
Accessed November 6, 2026
SB 484 signed: ratepayer, local authority and water protectionsab
Published May 7, 2026 · Accessed November 6, 2026
Approved utility tariffs for large-load customersab
Accessed November 6, 2026
Data center energy, water and incentive lawsab
Published October 1, 2026 · Accessed November 6, 2026
AB 130 and SB 131 housing and environmental review reformsab
Published June 30, 2025 · Accessed November 6, 2026
HB26-1001: qualifying-property housing; administrative approval from late 2027abc
Published March 25, 2026 · Accessed November 6, 2026
Housing for Every Delawarean Act and ROAD-DE Act signingab
Published October 7, 2026 · Accessed November 6, 2026
Maryland Housing Certainty Act, SB 325, Chapter 590ab
Accessed November 6, 2026
Middle housing implementation guidance↩︎
Accessed November 6, 2026
SB 840: municipal mixed-use and multifamily development↩︎
Accessed November 6, 2026
Executive order ending ImagiNE Act access for data centers↩︎
Published July 21, 2026 · Accessed November 6, 2026
Data center permits and enterprise exemption framework↩︎
Accessed November 6, 2026
Qualified Data Center Exemption↩︎
Published June 25, 2026 · Accessed November 6, 2026
H.727 status: governor's veto sustained May 29, 2026↩︎
Accessed November 6, 2026
HB 2014 enrolled text: certified high-impact data centers↩︎
Accessed November 6, 2026
Accessed November 6, 2026
Data center project permitting overview↩︎
Accessed November 6, 2026
Attorney general calls for statewide data center pause↩︎
Accessed November 6, 2026
Economic development legislation: data center exemption amendment↩︎
Accessed November 6, 2026
Data infrastructure and tax incentive program↩︎
Accessed November 6, 2026
Planning record for Bill 170: data processing facilities and centers↩︎
Accessed November 6, 2026
Data center sales tax exemption↩︎
Accessed November 6, 2026
Data center gross retail and use tax exemption↩︎
Accessed November 6, 2026
Data center sales and use tax incentives↩︎
Accessed November 6, 2026
SB 98 data center sales tax exemption↩︎
Accessed November 6, 2026
Lexington data center moratorium extended to October 2027abc
Accessed November 6, 2026
Data center purchase sales and use tax exemption↩︎
Accessed November 6, 2026
Executive Order 658: responsible data center development↩︎
Accessed November 6, 2026
Accessed November 6, 2026
January 2026 tax incentive booklet: data center enterprises↩︎
Accessed November 6, 2026
State intervention in large new load tariff proceeding↩︎
Accessed November 6, 2026
Governor interview on proposed data center moratorium↩︎
Accessed November 6, 2026
P.L. 2026, Chapter 32: large data center electric-service framework↩︎
Accessed November 6, 2026
Project Jupiter: YGI Microgrid public permit record↩︎
Accessed November 6, 2026
Notice: repeal of electricity exemptions at datacenters↩︎
Accessed November 6, 2026
Sales tax exemptions and incentives: qualified data centers↩︎
Accessed November 6, 2026
Statutory definition: Data Center Customer Ratepayer Protection Act↩︎
Accessed November 6, 2026
2025 S 0921 introduced bill: qualified data center incentives↩︎
Accessed November 6, 2026
September 2025 sales tax manual, Chapter 9 exemptions↩︎
Accessed November 6, 2026
2026 SB 135 session law: utilities and data center regulation↩︎
Accessed November 6, 2026
HB 1847, Public Chapter 961, signed May 7, 2026↩︎
Accessed November 6, 2026
Data center equipment sales tax exemption briefing↩︎
Accessed November 6, 2026
| DCEO incentive eligibility and agreement status, separately from permits. |
| Maine | LD 307 veto sustained; advisory work | Do not describe the vetoed bill as an operating statewide moratorium. |
SCC order specifies January 1, 2027 for the new class. Recheck subsequent orders and the project's contract before relying on it.
Expected: Maine advisory recommendations due[10]
Recommendations are not an enacted moratorium. Review any resulting bill or executive action separately.