Weekly Data Center News: 02.16.2026

The third week of February 2026 underscores a sharpening regulatory "sword" as states and small towns alike move from observation to intervention. We are seeing a shift from simple disclosure requirements to mandatory operational standards for large-load facilities.

For developers, the trend is one of "compulsory sustainability." Voluntary ESG goals are being codified into law, with strict mandates on renewable matching and water usage that could fundamentally alter the economics of 30 MW+ projects. Navigating this new legal landscape requires move-in ready compliance strategies.

Colorado Proposes "Large-Load" Data Center Bill

The Colorado Senate has introduced SB26-102, a landmark bill that targets data centers with a peak load of 30 MW or more with stringent new energy and water requirements.

• Mandatory Renewable Matching: Beginning in 2031, operators must source 100% of their electricity from renewable resources and meet strict hourly matching requirements set by the PUC.

• Developer Analysis: This bill represents a "stick" approach to grid management. Beyond power sourcing, the requirement for 15-year utility contracts or total up-front infrastructure payments eliminates the ability to scale capital expenditures over time, potentially pricing out smaller hyperscale developers in the state.

Illinois Lawmakers File "The POWER Act"

Illinois legislators have introduced the POWER Act (SB4016), aimed at establishing comprehensive statewide standards for hyperscale data center development.

• Regulatory Friction: The act mandates cumulative impact assessments, public hearings, and community benefit agreements for new builds. It also requires quarterly reporting on water usage and creates a "Data Center Community Intervenor Compensation Fund" to support local opposition efforts.

• Developer Analysis: Illinois is following the "transparency-first" model. The ban on non-disclosure agreements (NDAs) regarding environmental impacts marks a significant shift in how developers will have to negotiate with municipalities, ending the era of "silent" site selection.

Fleet Data Centers Prices $3.8B for Nevada Mega-Campus

Fleet Data Centers, the development arm of Tract, has announced the pricing of $3.8 billion in senior secured notes to finance a 230 MW turnkey campus in Reno, Nevada.

• Massive Capital Raise: The project is 100% leased to an unnamed "investment grade tenant" with a market cap exceeding $3 trillion, a profile matching only a handful of AI leaders like NVIDIA, Apple, or Alphabet.

• Developer Analysis: This transaction sets a new benchmark for project financing, highlighting the "verticalization" of the industry. By leveraging Tract’s "powered land" strategy—where site preparation and substation work are completed before vertical construction—Fleet is able to secure massive debt facilities at aggressive pricing.

Canton, NC Enacts 12-Month Development Halt

The Town of Canton, North Carolina, has passed a one-year moratorium on new data centers and cryptocurrency mining operations, specifically targeting the site of a decommissioned paper mill.

• Regulatory Friction: The 185-acre site was attractive due to its high-capacity water and electrical infrastructure, but local officials labeled the tech as a "present threat" to energy and water stability.

• Developer Analysis: This highlights the risk of "legacy site" redevelopment. While former industrial sites (like paper mills) often have the necessary M&E infrastructure, the emotional weight of their closure can lead communities to hold out for higher-employment industries over low-headcount data centers.

Cloudflare Outage Disrupts Major NJ Data Hub

A significant service disruption at a New Jersey data center utilized by Cloudflare resulted in cascading outages across platforms including X (formerly Twitter) and AWS.

• Resiliency Check: The disruption was traced to a configuration error that crashed traffic management systems, revealing the continued fragility of centralized cloud dependencies.

• Developer Analysis: This "cascading failure" scenario reinforces the growing demand for regional edge distribution. As core hubs like New Jersey face these types of "software-defined" outages, tenants are increasingly looking for multi-region redundancy that avoids single points of failure in the network architecture.

Infrastructure Solutions for Data Center Developers

As the "Power Act" in Illinois and SB26-102 in Colorado shift the goalposts for site viability, LandGate provides the real-time grid and water data needed to stay ahead of mandatory reporting.

Book a demo with our team today to explore our tailored solutions for navigating Wisconsin-style regulatory hurdles or visit our resource library for the latest insights on AI power demand.