North Carolina communities enact data center moratoriums to update regulations
Multiple communities across North and South Carolina have enacted moratoriums on new data centers to allow time to update zoning codes and establish regulations for managing noise, water, and power demands. These pauses are a response to issues like lack of transparency and insufficient infrastructure planning by developers, prompting calls for greater community engagement and responsible development practices. Specific examples include Charlotte's 150-day moratorium and a lawsuit in Stokes County, NC that led to a county's decision being voided.
The Charlotte City Council recently enacted a unanimous 150-day moratorium on new data centers, joining numerous other communities across North and South Carolina, including Rowan, Cumberland, Holly Springs, Asheville, York, Chester, and Spartanburg counties, in pausing development. According to Colton R. Overcash, founder of Vertex Strategies, these moratoriums are not rejections of technology but rather an admission that local governments lack adequate zoning tools to manage the significant noise, water, and power demands of data centers.
Overcash highlights examples where data center projects have faltered due to developers' conduct and lack of transparency. In Marion County, SC, a $2.4 billion project approved after officials signed non-disclosure agreements with residents in the dark, later failed due to power supply issues. In Stokes County, NC, commissioners rezoned 1,845 acres for a hyperscale complex, overriding their planning board and neglecting proper community notice, which led to a lawsuit and the county voiding its own decision, forcing the developer to restart. Conversely, Microsoft is praised in Person County for committing to cover its own power costs, demonstrating good faith. Communities are seeking to be treated as partners rather than obstacles, and the article suggests that smart developers will engage with communities before votes to avoid future conflicts.