A data center moratorium is on the table in Asheville
Asheville, North Carolina, is considering a one-year moratorium on data center development approvals. This pause would allow the city to research the impacts of data centers on energy and water resources and develop explicit legal definitions and zoning regulations. The City Council is scheduled to vote on the moratorium on June 26.
The city of Asheville, North Carolina, is proposing a temporary, one-year moratorium on new data center development approvals. City staff will present a framework for this pause to the Asheville City Council, which is slated to vote on the measure on June 26.
This move follows similar actions by other western North Carolina communities like Boone, Canton, Woodfin, Swain County, and Clay County, all prompted by concerns over the significant energy and water demands of data centers, especially new "hyperscaler" facilities driven by AI. Council member Maggie Ullman stated that the moratorium's purpose is to allow the city to understand data center impacts and develop regulations, including a legal definition for data centers, which is currently lacking in Asheville's development ordinance.
City Attorney Brad Branham emphasized that Asheville needs to act to ensure any future data center development aligns with specific rules to protect public interests, infrastructure, and natural resources. North Carolina currently offers tax incentives for data centers, but Governor Josh Stein and state Republicans are reportedly reconsidering these policies, with a proposed bill aiming to prohibit local tax incentives and obligate Duke Energy to protect ratepayers from increased electricity grid strain.