NC judge rules Chatham County data center can go forward despite moratorium
A Chatham County data center project by developer Eco TIP West will proceed despite a county-enacted year-long moratorium, following a Superior Court decision. The developer sued the county, successfully arguing its project was already in progress when the moratorium was passed and should be exempt. The court ruled in favor of Eco TIP West and ordered Chatham County to pay damages.
A Chatham County data center project by Eco TIP West is set to move forward, despite a year-long moratorium enacted by Chatham County commissioners in February, which is effective until February 11, 2027, or until new zoning regulations are adopted.
The developer, planning a 750-megawatt data center at the Triangle Innovation Point West business park near Moncure, sued the county in April. Eco TIP West contended that its project was already underway when the moratorium was approved, therefore arguing it should be exempt from the ban. Superior Court Judge John Morris ruled in favor of Eco TIP West last week, stating that the developer was entitled to judgment as a matter of law, after reviewing briefs, motions, and arguments.
Eco TIP West's lawsuit indicated an $11 million investment in the project and highlighted that the intended site was already zoned for data center use. The company's lawyers argued that the moratorium, and the county's refusal to recognize the project's exemption, caused substantial financial losses and violated applicable statutes and legal principles. Judge Morris's ruling mandates Chatham County to pay damages to Eco TIP West for attempting to impede the project.
This ruling comes amidst similar data center moratoriums passed by at least 30 other local governments across North Carolina, making the long-term impact of this specific lawsuit on other bans uncertain.