Foley approves 6-month moratorium on data centers, crypto-mining facilities

The Foley City Council in Alabama has approved a six-month moratorium on new proposals for data centers and cryptocurrency mining facilities. The ordinance, which went into effect on Tuesday, September 8, restricts the acceptance, processing, approval, and consideration of applications for such facilities, including server farms.

Mayor Ralph Hellmich stated that no data centers have yet been proposed for the Foley area. The moratorium is a proactive measure to allow the city to review and update its regulations, including environmental and zoning ordinances. The aim is to ensure that Foley is prepared to address potential impacts should data center or crypto-mining operations seek to establish in the future, covering all relevant questions before any applications arise.

Hellmich highlighted Foley's unique position as the owner of Riviera Utilities, its electrical provider, which already has policies to prevent data centers from burdening existing customers with electrical costs. The city plans to collaborate with Riviera Utilities to discuss water and power usage, and anticipated megawatt thresholds. The updated regulations will focus on water resources, air, and noise pollution.

City officials emphasized that the moratorium is intended to provide time for staff to study best practices from other communities and modify municipal regulations, rather than to restrict the legal use of private property. This initiative is part of Foley's efforts to manage rapid growth while preserving community qualities and protecting the environment from potential impacts of new technically oriented uses.