North American Local Governments Vote on Data Center Restrictions

Local governments in three different jurisdictions took contrasting steps to regulate data center development during the week of July 14, 2026. In Hamilton County, Tennessee, the Hamilton County Commission unanimously approved a one-year moratorium on new data centers in unincorporated rural areas. Proposed by Mayor Weston Wamp, the pause targets facilities with a peak electric demand of 1 megawatt and aims to establish permanent zoning codes by March 2027 to prevent inappropriate placement and avoid lawsuits.

Conversely, the Hamilton City Council in Ontario, Canada, voted 10-6 to reject a proposed one-year interim control bylaw. The rejected moratorium, sponsored by Councillor Nrinder Nann, intended to provide time to update governance rules regarding water and energy consumption. Mayor Andrea Horwath argued the ban would deter investment and reduce opportunities for residents. The decision allows two projects to proceed: a National AI Compute Facility by the Digital Research Alliance of Canada and a research center by McMaster University and s2e Technologies.

In Pennsylvania, the Columbia Borough Council voted 4-3 to advance a zoning ordinance removing data centers from permitted uses in light business districts. This action specifically targets the former McGinness Airport property. Council member Ethan Byers stated the change is necessary to facilitate the sale of the property without the risk of lengthy legal appeals following the council's previous rejection of a $6.35 million bid from Saadia Holdings LLC.