Asheville City Council enacts one-year data center moratorium

Asheville City Council addressed several key issues during its Tuesday night meeting, prominently including the unanimous adoption of a one-year moratorium on new data center development applications. Mayor Esther Manheimer emphasized the growing importance of this issue as communities across North Carolina confront the impacts of large-scale data centers and AI infrastructure. Councilmember Kim Roney voiced concerns about the facilities aligning with Asheville's long-term vision, stating, "We didn't spend decades building an arts, culture and outdoor recreation economy so we could become a warehouse district for AI."

City staff indicated that Asheville currently lacks specific zoning definitions and standards for data centers, including regulations for electricity demand, water consumption, noise, lighting, and heat generation. The temporary pause aims to allow the city to develop these crucial regulations. The moratorium also extends to cryptocurrency mining facilities, a point of concern for several residents who spoke in favor of the pause, citing potential issues with energy use, environmental impacts, and rising utility costs.

In other significant actions, the council approved a $19.2 million reallocation of federal disaster recovery funds to accelerate home repairs for residents affected by Tropical Storm Helene. This amendment, which redirects funds from affordable multifamily housing and infrastructure, is expected to assist 55 to 65 homes and now awaits final approval from the U.S. Department of Housing and Urban Development. Additionally, the council authorized a major renovation project for the nearly century-old Municipal Building, home to the Asheville Police Department and Fire Station 1, to address structural deficiencies.