Palm Beach Rejects 600 MW AI Campus, Forcing Investors to Rethink Sunbelt Bet

On Sunday, St. Joseph, Missouri became the latest city to pause all new data center applications while officials consult outside zoning experts — the fifth or sixth local government to do so this week alone, as Yahoo News reported. The Missouri story arrived four days after a more consequential event 1,200 miles to the southeast that national markets have not yet fully priced.

On July 15, after more than twelve hours of public testimony, Palm Beach County commissioners voted 5-1 to deny “Project Tango” — a proposed 600 MW hyperscale AI campus in Loxahatchee, Florida, that had planning staff backing, a decade-old site approval, and the full commercial resources of a well-funded developer behind it, CBS12 reported. The denial delivered a lesson that extends far past one Florida county: local permitting risk is now a category on the same level as grid capacity and chip supply in the infrastructure stack that makes AI work.

Neil Osnato, founder of Persistence Analytics Group, put it directly to Data Center Knowledge after the vote. “Local permitting risk is now load risk. Community acceptance is now forecast risk,” he said. “Submitted load is not realizable load. Forecast demand is not durable demand.”

What Project Tango Was

Project Tango was a proposal by developer PBA Holdings and Atlanta-based WPB Logistics LLC to build a 3.6-million-square-foot AI campus on 202 acres at the Central Park Commerce Center in Loxahatchee, along Southern Boulevard — a 600 MW power draw that would have ranked among the largest single-site AI facilities in the southeastern United States, WLRN reported. To put 600 MW in context: industry analysts define a hyperscale data center as exceeding 100 MW; Project Tango’s targeted draw was six times that floor, according to the Congressional Research Service…

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