The cleanliness of the energy consumed is not the reason why it is to the detriment of a community to have a data center nearby.

That said banning it across the whole state, in a state with ample industrial parks and water resources, does seem excessive.

Data centers should at least be autonomous for energy generation and cooling systems, in the current utilities landscape in US the energy company dictates price mostly by demand and Big Tech will always have enough money to pay, the water company will have to clean more freshwater and in dry season will never cut off the datacenter: these are (summing that with no convenience whatsoever for nearby towns, few to no people in those communities will work for the datacenter. Maybe they pay good taxes to towns but it isn't a given either) in my opinion very solid elements to view a datacenter as a menace.