Holly Springs can regulate data centers, but town manager says it can’t ban them
Holly Springs, NC has enacted a 12-month moratorium on new data center applications while it studies and develops new regulations. The Town Manager clarified that the town can regulate data centers based on impacts like water and electricity use, but cannot outright ban them under North Carolina law. Residents have expressed concerns about the demands data centers place on local resources.
Holly Springs, North Carolina has enacted a 12-month moratorium on new data center applications, which began on June 17th, 2026, and is set to run until June 16th, 2027. Town Manager Randy Harrington informed the Town Council that while the town has the authority to implement regulations governing data center operations, including standards for location, compatibility, water and electricity use, backup power, noise, and traffic, it lacks the legal power under North Carolina law to outright prohibit data centers from locating within its limits.
The moratorium was unanimously approved by the Council to allow the town to assess and evaluate the potential impacts of modern data centers on local resources, which differ significantly from facilities contemplated under older regulations. The town's Land Use Advisory Committee is actively reviewing data center regulations from other communities and gathering input from residents and stakeholders. Public comments during the initial hearing largely supported the moratorium, with residents voicing concerns about water and electricity demand and questioning the economic benefits versus resource strain.
Town staff estimated the research and community engagement phase would take eight to nine months, with any proposed changes to the development ordinance requiring further processing. The town has also launched an online data center portal to provide information and solicit public feedback. While the moratorium is planned for a year, it could be lifted earlier if new regulations are adopted sooner.