Charlotte Stops Data Center Construction for Five Months To Study Infrastructure Concerns
Charlotte City Council has voted unanimously to enact a 150-day moratorium on new data center construction to study their impacts on electricity, water, noise, and the environment. This pause allows officials to examine policy options, though it does not affect projects that already have building permits. The decision follows similar actions in other North Carolina municipalities and comes amidst proposed state legislation to regulate data centers.
The Charlotte City Council has unanimously approved an immediate 150-day moratorium on new data center construction, which will last until November 5. This decision provides city officials with time to thoroughly investigate the impacts these facilities have on electricity costs, water usage, noise levels, and the environment. Council members Dimple Ajmera and LaWana Mayfield highlighted the necessity of this pause to prevent long-term unintended consequences from the rapid proliferation of data centers, many of which can currently be approved without public input.
While the moratorium will halt new permits, it will not affect projects that have already secured building permits or made substantial investments. This includes the first phase of the PowerHouse Charlotte campus in the University City area, which is projected to consume significant electricity, capable of powering 300,000 homes. The council's action comes after considerable public opposition, including a petition signed by thousands against a proposed data center near Reedy Creek Nature Preserve and criticism of a rezoning proposal for a facility in East Charlotte.
An interdisciplinary team, comprising staff from both the city and Mecklenburg County, will analyze policy options during the moratorium, engaging with stakeholders and organizing community meetings. Charlotte's move mirrors actions taken by other North Carolina localities, such as Durham's 60-day moratorium and 12-month bans enacted in Apex, Canton, Chatham County, and Gates County.
Adding another layer to the regulatory landscape, the North Carolina state legislature is currently considering the Rate Payer Protections Act. This bill, which has passed the House and is now before the Senate, would impose requirements on data centers, including water recycling and contributions towards power grid upgrades. Councilman J.D. Mazuera Arias underscored the importance of local governments retaining the authority to make decisions that serve residents, not solely profit-driven entities.