States Push Back Against New AI Data Centers Over Resources
WHO:
CBS News - Jason Haley, a 46-year-old resident of Southaven, Mississippi, is involved in a lawsuit against xAI and its subsidiary, MZX Tech, regarding noise issues from a data center plant.
CBS News - Taylor Logsdon, a 31-year-old resident of Southaven, is also involved in the lawsuit against xAI.
Newsweek - Trump praised data centers as "cash cows" while Palm Beach County rejected plans for a major expansion of a project.
NY Post - President Trump criticized Governor Kathy Hochul's decision, calling it a "terrible decision" and claiming it reflects the state Democrats' "political" agenda to shut down these "cash cows."
Inc - Fifteen states are considering moratoriums on new AI data centers.
CBS News Tech - New York Governor Kathy Hochul signed an executive order regarding AI data centers.
WHAT:
CBS News - The lawsuit filed by Haley and two other residents alleges that "near-constant" noise and vibrations from the plant are causing negative physical and psychological health effects.
CBS News - xAI's data center Colossus went online in Memphis in September 2024, and a second data center, Colossus 2, was announced to begin operation in late July 2025.
CBS News - The National Association for the Advancement of Colored People filed a lawsuit in April against xAI, claiming the Southaven plant emits "significant" amounts of harmful pollutants from its 27 gas turbines, which has since increased to 59.
Bloomberg Markets - New York's moratorium on new hyperscale AI data centers is described as the first of its kind in the U.S., with environmental advocates stating it represents a positive initial step but not sufficient action.
TechRadar - Trump stated that New York's ban on new hyperscale data centers should change "immediately," warning of potential economic impacts.
Newsweek - Palm Beach County reportedly rejected plans for a major expansion of a data center project on the same day Trump expressed support for data centers.
Cloud Computing News - New York has paused state environmental approvals for large new data center projects while it develops rules covering electricity demand, environmental effects, and infrastructure costs.
Cloud Computing News - The moratorium will remain in place for up to one year and applies to new facilities and expansions capable of consuming at least 50MW.
Truthout - New York has issued the U.S.'s first statewide moratorium on new hyperscale data centers, according to environmental advocates who view the order as a positive initial step.
Bloomberg Markets - New York's executive order is described as the first-in-the-nation ban on new hyperscale AI data centers.
NY Post - President Trump described the ban on data centers in New York as a significant economic mistake, emphasizing the financial implications for the state.
CBS News Tech - New York has paused the construction of new AI data centers.
Inc - A bill is advancing in a key state that may lead to similar policies as New York's.
WHERE:
CBS News - The noise complaints and lawsuit are occurring in Southaven, Mississippi.
Newsweek - The rejection of the data center expansion occurred in Palm Beach County, Florida.
CBS News Tech - The actions are taking place in New York and potentially in other states across the nation.
WHEN:
Inc - The advancing bill in the key state may indicate a future trend in state policies regarding AI data centers.
WHY:
CBS News - Residents like Haley and Logsdon report that the noise has led to headaches, stress, and sleep disturbances, with Logsdon stating that her children are having trouble staying awake at school.
NY Post - President Trump argued that the decision to ban data centers is politically motivated and detrimental to New York's economy.
CBS News Tech - There are growing concerns about the electricity and water usage of AI data centers, prompting backlash.
HOW:
CBS News - xAI has spent millions of dollars attempting to mitigate the noise with a sound wall, a berm, and evergreen trees, but residents report that these measures have not been effective.
Cloud Computing News - The moratorium on new data centers in New York will remain in place for up to one year and applies to facilities capable of consuming at least 50MW.
CBS News Tech - Governor Hochul's executive order is a method to delay the building boom of AI data centers in New York.
(UPDATED July 16, 2026 18:20 UTC)
A lawsuit has been filed by Jason Haley and Taylor Logsdon, both residents of Southaven, Mississippi, against xAI and its subsidiary MZX Tech, claiming that noise and vibrations from a nearby data center are causing serious health issues. The residents allege that the "near-constant" disturbances have led to headaches, stress, and sleep disturbances, with Logsdon noting that her children struggle to stay awake in school. Despite xAI's efforts to reduce the noise through various measures, including a sound wall and landscaping, residents report that these solutions have not been effective.
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(UPDATED July 16, 2026 16:20 UTC)
New York has implemented a moratorium on new hyperscale AI data centers, marking it as the first of its kind in the U.S. Environmental advocates are calling this a positive initial step, though they believe it doesn't go far enough. The moratorium will last for up to one year and applies to facilities that can consume at least fifty megawatts of power.
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(UPDATED July 16, 2026 12:22 UTC)
Trump has called for an immediate change to New York's ban on new hyperscale data centers, emphasizing the potential economic impacts of such restrictions. He believes that lifting the ban could spur growth and innovation in the tech sector. This statement was reported by TechRadar at 12:22 UTC.
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(UPDATED July 16, 2026 10:34 UTC)
Trump recently praised data centers as "cash cows," highlighting their economic potential. However, on the same day, Palm Beach County in Florida rejected plans for a major expansion of a data center project. This decision comes amidst ongoing discussions about the future of such developments in the area.
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(UPDATED July 16, 2026 08:48 UTC)
New York has announced a pause on state environmental approvals for large new data center projects as it works on developing regulations related to electricity demand, environmental impacts, and infrastructure costs. This moratorium will last for up to one year and applies to any new facilities or expansions that can consume at least fifty megawatts of power. The decision reflects the state's efforts to address the growing concerns surrounding energy consumption and its environmental effects.
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(UPDATED July 16, 2026 03:59 UTC)
New York has made headlines by issuing the U.S.'s first statewide moratorium on new hyperscale data centers, a move that environmental advocates are celebrating as a positive initial step. The order, announced at 19:30 UTC, aims to address growing concerns over the environmental impact of these large facilities. This groundbreaking decision could set a precedent for other states to follow in the future.
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(UPDATED July 15, 2026 23:17 UTC)
New York has taken a groundbreaking step by issuing an executive order that marks the first-in-the-nation ban on new hyperscale AI data centers. This significant move is expected to reshape the landscape of artificial intelligence infrastructure in the state. The order will take effect at 19:30 UTC, setting a precedent for other regions to consider similar regulations.
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(UPDATED July 15, 2026 22:18 UTC)
President Trump has sharply criticized Governor Kathy Hochul's decision to ban data centers in New York, labeling it a "terrible decision" that he believes showcases the state Democrats' political agenda. He emphasized that this move represents a significant economic mistake, with serious financial implications for the state. Furthermore, Trump argued that the ban is politically motivated and harmful to New York's economy.
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(UPDATED July 15, 2026 19:30 UTC)
New York Governor Kathy Hochul has signed an executive order that pauses the construction of new AI data centers, a move reflecting growing concerns over their electricity and water usage. Meanwhile, fifteen states are considering moratoriums on new AI data centers, and a bill is advancing in a key state that could lead to similar policies as New York's. These developments indicate a potential shift in state policies regarding AI data centers across the nation.