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Aug 27, 2026
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Cass County freezes AI data‑center plans amid farmer and water concerns

In eastern Nebraska, the small village of Murdock – a community of roughly 275 residents – became the focal point of an unlikely coalition. Conservative farmers, the state Sierra Club chapter, and labor leaders gathered at the local firehouse to voice concerns over rapid data‑center development that could reshape the rural landscape.

Local officials act to protect farmland and water

County commissioners in Cass County voted to impose a 12‑month moratorium on any new data‑center projects. The pause could halt Tenaska’s proposal to option more than 1,300 acres along Highway 75, south of Murray and Beaver Lake, for a power plant and data‑center complex.

Tenaska spokesperson Leighton Elise Eusebio said the company is studying the feasibility of generating power for large loads, whether for a data‑center or other economic development. He added that the firm hopes to work with public power and local stakeholders to benefit Nebraskans.

Another operator, CyrusOne, already controls nearly 400 acres near Plattsmouth, also along Highway 75, but no construction has begun and no specific project has been announced.

Farmers fear loss of food supply and rising costs

Judy Stroy, a fifth‑generation corn and soybean farmer whose family has tended the land for decades, warned that “the amount of ground that’s getting gobbled up every year, our food source is in trouble.” She said the situation should alarm everyone who depends on America’s agricultural output.

Local land values typically hover around $10,000 per acre, but developers have offered up to four times that amount. “What if somebody offered me $40,000 an acre for my ground? It would be hard to turn down,” Stroy admitted.

Water worries extend beyond Nebraska

The debate is not limited to the Corn Belt. In New Mexico, the $165 billion Project Jupiter – a massive data‑center complex near the Mexican border – has sparked alarm over dwindling water supplies. The state’s largest reservoir is at just 1.3 % capacity, the lowest level since the early 1970s.

Samantha Barncastle Salopek, a water‑law attorney running as a Republican for the Doña Ana County Commission, said the issue transcends party lines. “It is not about blue vs. red… This is about the local community coming together and saying, ‘Hold on, hold on.’”

Oracle, the project’s developer, pledged $50 million for water and wastewater infrastructure and promised to use closed‑loop cooling and fuel‑cell systems to limit water use. Nevertheless, the Center for Biological Diversity filed an emergency petition with the New Mexico Supreme Court, temporarily halting well‑drilling approvals.

Labor sees both risk and opportunity

Even organized labor has taken a nuanced stance. Mike Gage, president of the Nebraska State AFL‑CIO, expressed concern that AI could replace some jobs, yet he also highlighted the potential for construction and long‑term positions created by data‑center projects. He cited a data‑center built decades ago in Council Bluffs, Iowa, which still employs about 60 workers.

Heather McKenzie, a labor‑relations specialist in Lincoln, echoed the sentiment that additional data‑centers could bring jobs, provided they are developed responsibly and with community input.

What’s next for the region?

The moratorium gives local stakeholders time to assess the long‑term impacts on agriculture, water resources, and electricity rates. It also reflects a broader national conversation about balancing high‑tech economic growth with the preservation of family farms, reliable water supplies, and affordable energy for rural America.

President Donald Trump has publicly praised data‑center development as a source of jobs and a way to keep the United States ahead of China in the technology race. Yet the grassroots opposition in Nebraska and New Mexico demonstrates that even supporters recognize the need for careful, community‑first planning.


Original reporting: NBC Connecticut (Hartford) — read the source article.

OBBM Network Editorial Staff

[email protected]

Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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