Data center moratorium fever grows across North Carolina
North Carolina communities, including Charlotte, are increasingly enacting temporary moratoriums on data center development due to concerns about energy, water consumption, and infrastructure strain. These pauses aim to allow local governments time to update outdated planning ordinances and assess environmental impacts, though they typically do not affect projects already underway. Resident opposition has played a significant role in pushing for these policy changes in various localities.
North Carolina is experiencing a growing trend of local governments implementing data center moratoriums, with Charlotte becoming the latest and largest community to approve a 150-day pause. City Council member Dimple Ajmera highlighted the responsibility to understand the long-term consequences of data center development on energy demand, water consumption, infrastructure, and land use, before decisions become irreversible. Dozens of localities across the state have adopted similar measures to update planning ordinances that are not equipped to handle modern data center facilities, which are experiencing a surge in demand driven by the artificial intelligence industry.
In Charlotte, active grassroots opposition, spearheaded by groups like PSL Charlotte and member Dana Alhasan, successfully pressured the City Council to enact its moratorium following concerns over two planned data center projects in the eastern part of the city. However, a key limitation of these moratoriums is that state law prohibits them from pausing projects already in the development pipeline, including one by American Tower Corporation in Charlotte. Similarly, in Rowan County, residents, led by activist Mark Ortiz, raised concerns about environmental effects, noise, and water usage regarding two proposed data centers, including a 400-acre facility by Edged Energy, prompting county commissioners to pass a one-year moratorium that also exempts ongoing projects.
Conversely, the city of Salisbury, the county seat of Rowan, is moving forward with a separate data center project to be operated by Flexential. The Salisbury Town Council passed a text amendment to its land development ordinance, requested by the developer, establishing a framework with restrictions on maximum size, noise, and water consumption for data centers within city limits. Meanwhile, towns like Hillsborough in Orange County have proactively passed moratoriums to adjust planning ordinances, citing constrained water and sewer capacity and the need for clearer regulations, despite having no immediate data center proposals. Other nearby jurisdictions, including Durham, Chatham County, and Apex, have also enacted similar pauses.
Dan Diorio of the Data Center Coalition expressed concern that these moratoriums could signal that an area is closed for business, potentially impacting economic development. However, local leaders in municipalities like Asheville and Fayetteville are still considering similar regulations, indicating a sustained focus on managing data center growth responsibly across the state.