Fayetteville Hits Pause on Data Center Ordinance

The Fayetteville City Council recently held a contentious meeting, ultimately voting 5-4 to halt progress on a proposed data center ordinance and instead investigate a potential moratorium on new data center construction. The decision, led by Councilmember Shaun McMillan's motion, was a response to loud and organized public opposition advocating for a pause in development, citing concerns over water resources and electricity grid capacity. Residents, holding signs such as "Moratorium Now" and "Protect our water," urged transparency from both the city and Cumberland County. City senior planner Demetrios Moutos had presented a draft ordinance intended to define clear rules for data centers, recommending it advance to a public hearing to address a "code gap." However, Councilmember Deno Hondros argued that immediate baseline protections were needed, stating, "We have zero protections in place." Mayor Mitch Colvin, who initially supported the motion to gather more information, later clarified his support was for learning about a moratorium, not necessarily implementing one. Development Services Director Gerald Newton confirmed that without an ordinance, data center proposals would fall to the city manager's discretion. Fayetteville's debate mirrors broader statewide discussions, with communities like Kings Mountain, Chatham County, and Gates County having already enacted moratoriums, and others, including Apex and Cumberland County, considering them. North Carolina Governor Josh Stein's office is also reviewing the state's significant tax exemptions for data centers, which could reach over $400 million annually. The council's vote directs City Attorney Lachelle Pulliam's office to brief them on the implementation of a moratorium, indicating a temporary halt on accepting or approving data center proposals while the city studies the issue more comprehensively.