Cleveland’s proposed Data Center moratorium in a race against time, technology

Cleveland is considering a proposed moratorium on new data center permits to allow city officials to review and update its outdated zoning code. The City Council has expressed concerns that new data centers could shift costs to utility consumers and have harmful environmental impacts, outweighing potential economic benefits. The moratorium legislation would halt the review and issuance of various permits for data centers within the city. The City Planning Commission accepted several amendments to the proposed moratorium, including extending its timeline to up to one year upon passage. Chief Zoning Administrator Shannan Leonard emphasized the importance of comprehensive wording to include accessory facilities like generators when defining data centers within city codes. Two notable data center projects in Cleveland are currently in the works. H5 Data Centers is planning an expansion of its existing facility downtown, which involves demolishing five retail spaces for additional electric generators. Separately, Lakeland Equity Group proposed a $1.6 billion hyperscale campus in Cleveland's Slavic Village, but its application was recently rejected by the city's Building Department due to a lack of required planning documents. Lakeland Equity Group has stated its intention to continue working with local officials and residents. Ward 15 Councilman Charles Slife, the author of the moratorium legislation, intends for the proposal to go through committee review to gather public and stakeholder input. This process suggests that the moratorium is unlikely to be passed before City Council's summer recess, potentially giving developers more time to secure approvals under the current zoning code.