Orange County, Hillsborough and municipalities across North Carolina attempt to pause data center growth

Orange County, Hillsborough and municipalities across North Carolina attempt to pause data center growth

News ClipDaily Tar Heel·Hillsborough, Orange County, NC·6/18/2026

Hillsborough has imposed a 60-day moratorium on new AI data centers, following Orange County's approval of a one-year moratorium. These local actions aim to allow time to update land-use ordinances to address concerns about data center impacts, while North Carolina lawmakers are also considering state-level regulations.

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Gov: Town of Hillsborough, Orange County Board of County Commissioners, N.C. General Assembly, National Association of Counties

The Town of Hillsborough has unanimously voted to enact a 60-day moratorium on the approval of new artificial intelligence data centers and data mining facilities within its limits. This decision comes shortly after the Orange County Board of County Commissioners approved a one-year moratorium in late April, reflecting a growing trend among municipalities in North Carolina to pause data center development amidst a surge in demand driven by the AI industry.

Mayor Mark Bell of Hillsborough emphasized a cautious approach to update the Town's Unified Development Ordinance (UDO) to address the significant potential impacts of data centers, including environmental concerns, electricity rates, noise levels, and water supply. Orange County Commissioner Marilyn Carter echoed these sentiments, stating the county's moratorium aims to assess how to implement a land-use ordinance that balances economic development with community protection.

Rania Masri, a board member of the North Carolina Environmental Justice Network, expressed strong disagreement with the narrative that data centers are a significant economic investment, arguing they offer pollution with few job opportunities and suggesting conditional use permits might be a better approach than moratoriums.

The Data Center Coalition's communications coordinator, Masyn Halpern, stated that local moratoriums could signal that an area is