US Local Governments Implement Data Center Moratoriums Amid Resident Protest

Local governments across the United States are increasingly implementing moratoriums and restrictive zoning to combat the rapid expansion of data centers. On July 8, the Davie County Board of Commissioners in North Carolina unanimously approved a one-year moratorium following a petition with 3,500 signatures. Commissioner Mark Jones argued that a 600-acre industrial campus is unsuitable for the rural area, while County Manager Brian Barnett stated the pause allows the county to establish standards that developers must meet to protect rural heritage.

Similar actions emerged in other states. The Mendocino County Board of Supervisors in California voted on July 7 to draft an urgency ordinance for a temporary moratorium, with officials citing a need to protect scarce water resources from being used to cool graphics processing units. In Colorado, Montrose County passed a six-month moratorium on July 1, and Denmark Township in Michigan approved a one-year pause on July 8. New Albany, Indiana, advanced a one-year moratorium for facilities exceeding 100,000 square feet, while the Albany Common Council in New York voted to support a proposed statewide moratorium.

In Nashville, Tennessee, the Metro Council advanced three bills to restrict or pause construction following a public dispute between Mayor Freddie O'Connell and DC BLOX Inc. over a project near the Nashville Zoo. Other regions are pursuing nuanced regulation: Butler Township, Pennsylvania, is drafting a 35-page curative amendment, and Loudoun County, Virginia, held a town hall to address the industry's impact on home values and quality of life, though officials noted a moratorium is currently illegal under Virginia law.