Charlotte City Council Debates 90-Day Pause on Data Center Construction

The Charlotte City Council is scheduled to discuss a proposal for a 90-day moratorium on new data center construction, driven by mounting resident concerns regarding noise, significant water consumption, and electricity demands. Council member Dimple Ajmera, a proponent of the pause, expressed the need for "guardrails" to regulate these facilities, which can be built "by right" in several districts without standard rezoning hearings. The urgency comes as the first of five facilities at American Real Estate Partners' 1.5 million-square-foot "PowerHouse Charlotte" project in University City is already underway, with completion expected by April 2027. Resident Antoinette Mingo labeled the project a "monstrosity," citing a lack of transparency from developers and Duke Energy regarding community impact. Despite city staff indicating that several months would be needed to develop new regulations, Mayor Vi Lyles recently cast a tie-breaking vote to prevent a public hearing on data centers, a prerequisite for a moratorium vote. Concerns about potential legal challenges have also been raised, with a reference to a developer in Chatham County suing a local government over a similar year-long construction halt. Other North Carolina cities, including Durham and Apex, have already implemented temporary pauses on data center development. Separately, the Council is slated to vote on May 18 on a zoning petition from American Tower for a facility on Hood Road, a project already facing a petition with nearly 5,000 signatures from opponents. Duke Energy reported tracking 7.6 gigawatts of data center projects in its service pipeline, with 5 gigawatts currently under construction, emphasizing that while these centers currently account for less than 1% of peak electric demand, they could comprise 10% of electric sales by 2030. Additionally, Governor Josh Stein has called for state lawmakers to reexamine existing sales and use tax breaks for data centers, suggesting these incentives may no longer be necessary.