How a change buried in NC Helene relief bill makes it harder to block data centers
News ClipNews & Observer·Chatham County, NC·2/18/2026
Chatham County, North Carolina has approved a one-year moratorium on new data centers to review regulation, but a provision in a recent state disaster relief bill has complicated their efforts. The bill limits local governments' ability to 'down-zone' properties without the written approval of all affected owners, disrupting how municipalities have historically adjusted zoning to accommodate growth and new uses like data centers. Local leaders say this new down-zoning law is problematic and has caused issues for many North Carolina municipalities.
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Gov: Chatham County Board of Commissioners, North Carolina League of Municipalities
In North Carolina, a provision in a 2024 disaster relief bill has made it harder for local governments to regulate data center development through zoning. The law limits municipalities from "down-zoning" properties without the written approval of all affected owners. This has disrupted local governments' ability to proactively adjust zoning to accommodate new uses like data centers and cryptocurrency mines. While supporters view the changes as protecting property rights, local leaders say the new rules are unworkable. Some municipalities have resorted to moratoriums on data centers as they explore legal workarounds to the law. The future of local regulation may hinge on potential revisions to the down-zoning law.