Niles OKs data center moratorium
Niles City Council approved a 180-day moratorium on new data center permits and applications, declaring an emergency due to strong community opposition. This action comes as the city currently lacks specific zoning laws to regulate data centers, a concern highlighted by a proposed Bitdeer facility. The moratorium will allow city officials to draft restrictive zoning language and prepare for potential outcomes of a state-level ballot initiative concerning data center construction.
Niles City Council has enacted a 180-day moratorium on new data center permits and applications, citing an emergency due to a lack of regulatory framework and significant community opposition. The decision was prompted by a presentation from Bitdeer, a Singapore-based technology company specializing in cryptocurrency and AI cloud infrastructure, which intends to develop a facility at 1047 Belmont Ave. in Niles.
Residents, including Nikki Gorkie, voiced extensive concerns during public comments, highlighting issues such as massive electricity consumption, strain on infrastructure, increased noise, potential health risks from infrasound, decreased property values, and significant water usage. Council members Aaron Johnstone (D-2nd Ward) and James Sheely (D-3rd Ward) acknowledged the city's current inability to control or restrict data center development due to inadequate zoning laws. The moratorium provides a critical six-month period for city officials to work with CodeCraft Planning Studio, a consultant, to draft comprehensive and restrictive data center regulations.
The council also discussed the Ohio Prohibition of Data Center Construction Amendment, a statewide ballot initiative that would prohibit data centers exceeding 25 megawatts, which was certified for signature gathering by Attorney General Dave Yost in March. Councilman Johnstone emphasized the importance of preparing a "Plan B" for local regulation should the state initiative fail or not make it to the ballot, with officials expecting to know its status by mid-to-late August.