US Local Governments Enact Data Center Development Moratoriums

Local governments across the United States are implementing moratoriums on data center development to address concerns over power grid strain, water usage, and noise pollution. On September 15, the Gilroy City Council unanimously approved a temporary freeze on new data centers for at least 45 days, potentially extending to two years. While an existing Amazon project continues, the move halts a second potential facility by the company. Simultaneously, the Newport Town Council in North Carolina passed a one-year moratorium on data centers and cryptocurrency mining, and the Steuben County Board of Commissioners in Indiana formalized a six-month pause.

In Virginia, the Loudoun County Board of Supervisors voted 7-1-1 on September 16 to draft a 12-month pause on new applications. Board members Juli Briskman and Laura TeKrony are also seeking to eliminate a grandfather clause that allows some projects to bypass public hearings. This move faces opposition from the International Brotherhood of Electrical Workers, which warns the pause could jeopardize over 1,000 jobs.

In North Carolina, Beaufort County Commissioners are considering a similar one-year moratorium, with a final vote scheduled for October 5. While residents support the measure to protect farmland and resources, some officials have questioned the necessity of the pause given that no companies have yet approached the county for development.