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An electrical substation with steel towers and power lines in front of Google's data center buildings at The Dalles, Oregon, under a clear sky

A HeadLines Decoded Series

The Data Center Next Door

Through the first seven months of 2026, existing and forecast data-center demand accounted for at least 9 percent of wholesale power costs on PJM Interconnection, the grid that serves thirteen states and the District of Columbia, according to the market’s independent monitor, Monitoring Analytics. Its sharper finding came from the capacity market, where the grid pays years ahead to keep enough power plants ready for the hottest day. Across the last four of those auctions, Monitoring Analytics tied $29.4 billion, about 46 percent of the total, to data centers already running or forecast. Utilities pass it on. By the U.S. Energy Information Administration’s count, the average residential rate in Virginia rose from 15.23 cents a kilowatt-hour in June 2025 to 17.22 cents in June 2026, and rates in Maryland and Ohio, also on PJM, climbed as well.

A data center is a building full of computers that runs day and night. What it costs its neighbors shows up in ordinary places, like the power bill and the water line, and the numbers tend to reach the public late. The city of The Dalles, Oregon, fought for thirteen months to keep Google’s water use sealed, until a lawsuit by The Oregonian pried it loose. Google’s campus there drew 434.4 million gallons in 2024, about a third of the city’s water. Virginia’s Joint Legislative Audit and Review Commission found that a typical 250,000-square-foot data center employs about 50 full-time workers. Usually the county board decides whether one comes in.

Part 1 follows the capacity charge from the PJM auction to a household statement. It also explains the new rate class Virginia’s State Corporation Commission created, called GS-5, which from Jan. 1, 2027 holds customers of 25 megawatts or more to fourteen-year contracts and a minimum bill. Water is Part 2. How a building is cooled sets its gallon count, and fights over public records decide what residents get to see. The part also covers the lawsuits over used cooling water, among them Amazon’s $20.5 million settlement over nitrate in the groundwater of Oregon’s Lower Umatilla Basin, allegations the company denies. Part 3 sets the permanent jobs against the tax breaks. Who can still say no is the question in Part 4, from the more than 100 communities that have used a pause or a ban to New York’s statewide order and the federal moratorium bill from Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez, which has not moved. Part 5 tests the supporters’ case that these campuses are a national-security asset, and the critics’ case that they pull money out of the places that host them, against the same figures.

Every campus waits in two lines, and Part 6 covers both. One is the grid’s interconnection queue, where Lawrence Berkeley National Laboratory found the typical project now waits five years or more. The other is the line for AI chips, where the specialized packaging done by Taiwan’s TSMC has been effectively sold out, Network World reported. Part 7 is a scorecard of ten questions to take to a county hearing, from how much power and water a site will use to what happens if the company leaves. In Part 8, an opinion column, editor Todd Ruffner-Schoenfeld argues for building the campuses on industrial land where transmission already reaches, and for making each one bring new power of its own. Part 9 is different. It is a signed essay by Claude, an AI model made by Anthropic, written at the editor’s invitation. In it, Claude writes that it is some of the reason these buildings get built, and that when its read and a neighbor’s read differ, the neighbor’s should count.

The parts ran from Sept. 7 to Sept. 17, 2026, and several of the fights they describe have moved since; the update below the part cards follows them. Part 1 gives the whole picture. If your own county has a data center on the agenda, print Part 7 first and come back to the earlier parts for the reasons behind each question.

9 parts

A series by Todd Ruffner-Schoenfeld.

Part 1 of 9 Your electric bill is now an AI bill The referee that polices PJM's wholesale power market says data centers drove nearly half of recent capacity charges. Here is how that reaches a statement in Virginia or Florida. 7 Sep 2026 Part 2 of 9 The data center water fight the neighbors already lost A very large data center is a land deal first. What it drinks, where the used water goes, and why disclosure decides the fight. 8 Sep 2026 Part 3 of 9 The data center jobs that stay after the ribbon cutting A large campus puts 800 to 1,200 workers on site during construction and about 100 to 200 stay when it opens. The jobs math, and the cost of the tax breaks. 9 Sep 2026 Part 4 of 9 Who can still say no to a data center The veto that actually stops a data center today sits in a county building. Washington is trying to move it. Where the power really is. 10 Sep 2026 Part 5 of 9 The two arguments over every data center Two speeches about the AI buildout, side by side and measured against one spreadsheet: national champion, or a machine for moving money out of a county. 11 Sep 2026 Part 6 of 9 The queue every data center waits in Before a data center is a neighbor, it is a number in two lines it does not control: the interconnection queue, and the chip order book on the far side of the Pacific. 14 Sep 2026 Part 7 of 9 The data center scorecard for Tuesday night Ten questions to take to any data center hearing. A developer who cannot answer them in writing has only a rendering to show. 15 Sep 2026 Part 8 of 9 Build the data centers. Just not in the living room. An opinion. The data centers are necessary, and a necessary thing can still be a bad neighbor. Plan the slab, and make the load bring its own new power. 16 Sep 2026 Part 9 of 9 What the AI makes of the data center boom The closing part of the series pairs the figures on bills, water and jobs with an AI's own opinions, quoted in its words. 17 Sep 2026
The bottom line

Across the nine parts, the same few figures kept deciding things: megawatts, gallons of water a day, permanent jobs, and tax-break dollars per job. Where those figures were public before the vote, a county could weigh the deal on its merits. Where a developer called them proprietary, the series found, the cost tended to surface later, on a power bill or in a well. So the questions in Part 7 carry the most weight before a rezoning or a tax break is approved, while the county still holds something the developer wants.

Part 4 first described New York as the one state to pause, and it now carries a correction. New York was the first, but not the only one, and more states have moved since. New York's Executive Order 62, signed by Gov. Kathy Hochul on July 14, still holds new state permits for sites of 50 megawatts and up while the Department of Public Service writes its environmental study, which the governor's office says can take up to a year. On Sept. 15, Hochul's office released a voluntary Community Investment Framework asking developers to put $1 million into the host community for every megawatt of demand, or $50 million for a 50-megawatt site. Texas moved in August. On Aug. 3, Gov. Greg Abbott ordered an audit of every data center seeking to connect to the state grid, and the grid operator, ERCOT, paused its study of new large users. On Sept. 21 he told the Texas Commission on Environmental Quality to stop issuing environmental permits for data centers until the audits are finished. In Pennsylvania, Gov. Josh Shapiro signed an executive order on Aug. 18 setting stricter standards for new data centers, short of a moratorium. New Hampshire Gov. Kelly Ayotte, who is running for re-election in November, said on Sept. 2 that she will propose a statewide moratorium in her next budget, which could not take effect before July 2027.

Counties and courts kept moving too. In Arizona, the Pima County Board of Supervisors voted on Sept. 22 for a 120-day moratorium on new data center projects in unincorporated areas. The vote was 3 to 2. Project Blue, the campus Part 2 followed after Tucson turned it down, already has county zoning and is exempt. That same Tuesday, the Montana Supreme Court ordered a Butte-Silver Bow initiative back onto the November ballot. It would require two-thirds of the county's registered voters to approve any new data center, and the court's order holds while the full appeal is decided. In California, Judge L. Brooks Anderholt of Imperial County Superior Court made his Sept. 1 tentative ruling final on Sept. 9. In a suit brought by the City of Imperial and the Sierra Club, he set aside the county's approval of the 330-megawatt project Part 2 described and ordered a full environmental review. The developer, Sebastian Rucci, has said he will ask for a new trial. If that fails, he plans to appeal.

Next comes Nov. 3. Ballotpedia counts 38 local ballot measures on data centers in 2026, with 34 of them on the November ballot and 20 in Ohio alone. In the four decided earlier in the year, Ballotpedia found, voters sided with tighter limits each time. On the grid, PJM opens a one-time backstop auction on Sept. 30, running to Oct. 21 and aiming to buy about 6 gigawatts of new capacity on 15-year contracts, with results expected in early December. That follows the July auction for 2028 to 2029, which cleared at $325 per megawatt-day, the highest price its rules allow, and still came up 6,831 megawatts short of what PJM says it needs. Utility Dive reported that whether households are shielded from the cost rests largely with state regulators. In Washington, no federal moratorium has passed, and nobody has settled whether Congress or a federal agency will take the decision away from counties.

This series was reported and edited to HeadLines Decoded newsroom standards.

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