News analysis: Asheville’s moratorium on data centers buys time to answer questions
Asheville City Council has enacted a one-year moratorium on data center construction to address community questions and concerns about water and power consumption, potential disruption, and economic impacts. The move aims to allow the city time to develop permanent regulations, as it currently lacks a definition for data centers in its land-use rules. This follows similar actions by other North Carolina localities facing a surge in data center development driven by AI.
The Asheville City Council recently imposed a one-year moratorium on data center construction, prompting widespread discussion about the industry's environmental and economic implications. Council members and residents raised concerns regarding the vast water and power consumption of these facilities, their potential impact on neighborhoods, local character, and utility rates.
Mayor Esther Manheimer questioned the value of state tax incentives for data center developers, while others warned that a prolonged moratorium could cause Asheville to miss out on economic benefits. The city, which currently lacks a definition for "data center" in its land-use rules, joined approximately 30 other North Carolina localities in temporarily halting construction to establish permanent regulations. Buncombe County, which includes Asheville, previously restricted data center construction in 2024 after implementing its own moratorium.
The article highlights North Carolina's established data center presence, including Google's $2 billion facility in Lenoir and Amazon's $10 billion project in Richmond County. However, experts suggest Asheville may not be an ideal location for hyperscale facilities due to limited electricity, water, and available land. Despite these challenges, evolving technology like vertical data centers and AI-driven demand could make any community a target. Governor Josh Stein has also called for phasing out state tax incentives for data centers, citing significant revenue losses, though Caldwell County continues to offer substantial incentives for Google's expansion.
Key issues debated include job creation, resource consumption transparency, and impact on residential utility rates. While Google touts its efficient cooling systems, specific water and power consumption figures are not public. Experts disagree on whether data centers increase residential electricity costs. Advocates for regulation, such as Rania Masri of the North Carolina Environmental Justice Network, emphasize the need for local governments to use zoning processes to prioritize community health and economic well-being over corporate welfare.