Holly Springs (NC) Halts New Data Center Applications While Studying Water, Power, and Infrastructure Impacts
Holly Springs, NC, has enacted a temporary moratorium on new data center applications. This pause, effective for one year, allows town officials to study the impacts of data centers on water, electricity, noise, and other community infrastructure before updating existing regulations.
The Holly Springs Town Council in North Carolina unanimously approved a temporary moratorium on new data center development applications, effective June 17, 2026, through June 16, 2027. The decision was made to allow town officials to conduct a comprehensive study on the potential impacts of data centers on local water supplies, electricity demand, infrastructure, and nearby neighborhoods.
Sean Ryan, Development Services' Planning Division Manager, explained that the town's current data center regulations, last refined in 2020-21, do not adequately address the demands of modern data facilities, particularly concerning water and electricity consumption. The study will also review backup power generation, noise, transportation, and compatibility issues, as well as how other communities regulate data centers. Residents largely supported the moratorium during a public hearing, raising concerns about resource strain and questioning the economic benefits.
Mayor Mike Kondratick emphasized that the moratorium is a proactive measure to gather information and ensure appropriate policies are in place before considering future projects. The town's Land Use Advisory Committee will assist in reviewing research, gathering stakeholder input, and developing recommendations for updates to the Unified Development Ordinance. The moratorium could be lifted earlier if new regulations are adopted before its scheduled expiration.