Data center development denied in Gates County
Gates County, NC, has denied data center development and is drafting an ordinance to prohibit such facilities in its unincorporated areas. This follows a unanimous vote by county commissioners in December 2025 to enact a one-year moratorium on data center development, citing concerns over electricity, water consumption, noise, and strain on infrastructure. A public hearing for the proposed prohibitory ordinance is expected in September.
Gates County, North Carolina, is moving to prohibit data center development within its unincorporated areas following a unanimous decision to deny such facilities. On August 20, 2026, over 50 citizens attended a community engagement session in Gatesville to learn about the Gates County Planning Department's recommendations. Planning Director Lisa Cherry noted overall positive community response to the proposed recommendations, which are aimed at preventing data center establishment or operation.
The county's actions follow a one-year moratorium on data center development, enacted by the Gates County commissioners on December 17, 2025. Officials have been drafting an ordinance since late last year, permitted under North Carolina General Statute 160D-701, which empowers local governments to adopt land development regulations for public welfare. The draft amendment specifically prohibits data centers due to concerns identified by the Gates County Board of Commissioners and Planning Board, including high electricity and water consumption, noise, visual intrusion, electronic waste, greenhouse gas emissions, and the county's inadequate infrastructure to support these demands.
The ordinance, if approved by the county commissioners, will prevent the establishment, construction, expansion, or operation of data centers in unincorporated Gates County. It also prohibits the issuance of relevant permits. Government-owned data processing facilities for public purposes are exempt. A public hearing on the draft amendment is anticipated as early as the September 16 commissioners' meeting, after which formal action may be taken.