U.S. Counties Implement Data Center Moratoriums to Avoid Lawsuits

Local governments across several U.S. jurisdictions are implementing or extending moratoriums on new data center developments to establish protective regulations and avoid costly legal battles. These pauses allow officials to study effective legal language and ensure new ordinances are not vulnerable to court challenges from the large corporations seeking to build these facilities.

In Iowa, the Johnson County Board of Supervisors voted unanimously on October 15 to extend an existing moratorium on projects in unincorporated areas. Chair Jon Green noted that the move is necessary because applicants are often multinational corporations with deep technical staff, and the county must protect its interests in the strongest way possible.

Similar tensions are playing out in North Carolina. Guilford County officials postponed a vote on a proposed six-month moratorium following a public hearing where residents pushed for a longer 32-month pause. This follows a trend in the state where Northampton County adopted a 32-month pause in May, while Forsyth County recently rejected any moratorium due to fears of developer lawsuits. Guilford County is expected to revisit the decision on November 5.