Chillicothe Council Rescinds Data Center Moratorium, Plans Revision
Chillicothe Council rescinded its 60-day data center moratorium after discovering a February letter to a former paper mill owner indicating data center development was permissible under existing zoning. The decision was made to legally protect the developer, Alignment Engine, which had already begun planning based on the letter. The council intends to revise and reintroduce the moratorium with specific limitations for data centers, while excluding the current project.
The Chillicothe Council unexpectedly rescinded its 60-day data center moratorium during its September 14th session, just weeks after its unanimous passage on August 24th. The primary reason for the reversal was the emergence of a February 12th letter from the city, which, in response to a "zoning verification letter" from the owner of the former paper mill, indicated no apparent impediment to developing a data center on the "General Industrial" zoned site.
Mayor Luke Feeney explained that such letters are standard procedure and the city's Universal Development Code, while recently updated, does not specifically address data centers, leading to the default "permitted use" interpretation. Council member Jeff Creed, who chairs the Engineering Committee, championed the rescission, aiming to "grandfather" the Alignment Engine project to protect the city legally, as the company had already commenced planning based on the February letter.
Creed, however, also expressed a desire for a revised moratorium to include specific limitations for future data centers, such as a 100-megawatt power cap, independent electrical and water supplies, self-processing wastewater, and noise pollution controls. The Engineering Committee voted 2:1 to move the revised moratorium forward, despite Chair Kathy Dunn's opposing vote. The council seeks to update its code regarding data centers, a process estimated to take up to six months. Creed also highlighted the environmental benefit of the Alignment Engine development, noting its potential to manage the "Wear-Ever plume of pollution" in groundwater, a task currently handled by the former US Paper Mill.