With data center moratoriums, Madison and Dane County buy time to update land-use regulations

The City of Madison and Dane County have implemented moratoriums on new data center proposals to address growing controversy and update outdated land-use regulations. The goal is to craft new zoning codes and guidelines that better reflect current best practices for managing the impacts of evolving data center technology, particularly hyperscale facilities.

Madison's moratorium, imposed in January, was the subject of a virtual public meeting on June 3. Deputy Mayor Christie Baumel and city officials acknowledged the current zoning code lacks specific standards for data centers, especially hyperscale facilities that can strain energy, water, and air quality. The city is researching best practices and safeguards, focusing on land-use definitions, building design parameters, and suitable locations on Madison's eastern periphery. The city hopes to introduce proposed changes to its legislative process by September or October for final action by the City Council in December.

Separately, the Dane County Board of Supervisors passed an 18-month data center moratorium on June 4, which County Executive Melissa Agard approved on June 8. This moratorium applies to hyperscale data centers (at least 5,000 servers and 10,000 square feet) in towns subject to county zoning. It grants time for the County Board's Advisory Committee on Data Centers to study environmental, utility, and land-use effects. County Board Chairman Patrick Miles highlighted concerns about exaggerated economic benefits often asserted by data center companies and the need to explore community benefit agreements.

Both governmental bodies aim to learn from other communities and reports, such as one from the Brookings Institution, which suggests that regions can leverage their land and infrastructure to negotiate better economic gains from data center development, citing Microsoft's Mount Pleasant project as a model for local cooperation.