Charlotte City Council to finally debate data centers freeze
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The PowerHouse Charlotte development site. Photo: Alexandria Sands/Axios
Charlotte City Council could move Monday toward a temporary pause on new data centers amid growing resident concerns over noise, water use and electricity demand.
Why it matters: Some Charlotte leaders are antsy to take action on data centers — which require as much power as a small city — before more pop up without their approval or community input.
- "It's the wild, wild west," says council member Dimple Ajmera, who is asking for a 90-day pause on data center construction. "There are no guardrails."
Case in point: Right now, data centers can be built "by right," without rezoning hearings, in multiple districts. Construction is already underway on the first of five two-story data centers in University City, totaling up to 1.5 million square feet.
- The developer, American Real Estate Partners, expects to finish its first center at "PowerHouse Charlotte" in April 2027.
What they're saying: Neighbors are concerned about everything from noise and aesthetics to the impacts of their high electricity and water use.
- University City resident Antoinette Mingo calls the project a "monstrosity."
- "We really didn't have a say in this," Mingo tells Axios. "And I don't think Duke Energy or the builders were transparent as it relates to the impact on communities."
The latest: City staff have said they would need several months to study and develop regulations. But council asked them to deliver information on Monday anyway.
- Some members are cautious about the legal risks of a moratorium. In Chatham County, a developer is suing the local government over a year-long moratorium it passed.
- Mayor Vi Lyles broke a tie last month to prevent scheduling a public hearing on data centers, which would be required before a moratorium vote.
Yes, but: Other cities across the state, including Durham (60 days) and Apex (one year), have already passed pauses on data center construction.
- "We cannot allow the growth of this digital infrastructure to move faster than our ability to protect people who live here," Ajmera says.
The big picture: Duke Energy is tracking 7.6 gigawatts of data centers in its service area pipeline, including 5 gigawatts already under construction. To put that into perspective, a single gigawatt could power about 750,000 homes.
- The utility says data centers are less than 1% of its total peak electric demand but could make up about 10% of electric sales by 2030.
The other side: Duke Energy, which is actively courting data centers, says it will spread energy costs across the system over the long term.
- "Over time, that means more reliable service and lower costs than customers would otherwise face without that growth," the company said in a statement to Axios.
- But residents are concerned about rate hikes today.
Zoom in: A zoning petition from American Tower is one of the rare instances in Charlotte where city approval is required.
- The company is looking to build a data center of up to 40,000 square feet on Hood Road by 2028, on land currently zoned for houses. Council is scheduled to vote May 18 on the petition — a quick turnaround from Monday's discussion.
- A petition to stop American Tower's project has nearly 5,000 signatures as of Friday.
- "If built, it would use massive amounts of electricity and water, raise our already high utility bills, and pollute the surrounding community," the petition states.
- Ajmera says it's also an equity concern: "These data centers are being concentrated in the crescent," she says. "It's an environmental justice issue."
Zoom out: Gov. Josh Stein has called for lawmakers to review sales and use tax breaks for data centers. Stein says those incentives are no longer needed.