US Municipalities Enact Data Center Moratoriums to Update Zoning

Municipal governments across the United States are increasingly adopting temporary moratoriums on data center construction to address gaps in local zoning laws and assess utility impacts. Between July 14 and July 17, 2026, several jurisdictions enacted or proposed pauses ranging from six to 18 months. The Marysville City Council unanimously passed a six-month moratorium to complete water and sewer master plans, while the Newberry County Council in South Carolina confirmed a 12-month pause on new permits following resident opposition.

In Florida, the Pinellas Park City Council is considering a one-year moratorium following an application by American Tower for a 17,000-square-foot site. Similarly, the Southport Planning Board in North Carolina recommended a 15-month pause to mandate closed-loop water systems and noise limits. Other localities, including Smithville, Tennessee, and Plain City, Ohio, are pursuing temporary blocks to study the effects of high-density computing and cryptocurrency mining on electrical grids and water supplies.

Local officials emphasize that these measures are often proactive rather than reactive. In Michigan, the Pere Marquette Charter Township board approved a first reading for a one-year moratorium to address ordinance gaps. Officials in these regions cite concerns over noise pollution, energy costs, and the strain on municipal water sourcing as primary drivers for the regulatory pauses.