Local Governments Clash Over Data Center Moratoriums

Local governments across the United States are adopting divergent strategies to manage the rapid expansion of data centers. In Carlton County, Minnesota, the Carlton County Board of Commissioners unanimously passed a one-year moratorium on August 24, 2026, freezing the construction and expansion of facilities used for AI, cryptocurrency, and digital storage. This decision followed resident concerns over groundwater use and the loss of farmland, with officials tasked to study environmental impacts by February 2027.

Similarly, Ralls County commissioners in Missouri implemented a one-year moratorium on data centers and economic development projects. Presiding Commissioner John Lake advocated for a public vote, likely in April, to determine if such facilities should be permitted in the county.

In Chillicothe, Ohio, the City Council is evaluating a proposed data center at a former paper mill site. Site owner John Todoroki proposed using a windowless building from the 1990s, with noise-mitigating buffers for external equipment. While some residents have requested a six-month moratorium to establish regulations, Council member Kathy Dunn is currently gathering information and has hired a law firm to assist in formulating legislation.

Conversely, Davidson County commissioners in North Carolina rejected a proposed six-month moratorium on August 24. Commissioner Todd Yates argued that data centers cannot be stopped and may provide significant benefits to the region.