Charlotte City Council will vote on 150-day data center moratorium
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The audience at Monday's city council meeting. Photo: Alexandria Sands/Axios
Charlotte City Council is moving toward a 150-day moratorium on new data centers, potentially giving the city until October to develop regulations before more windowless warehouses pop up.
Why it matters: Despite rising neighborhood opposition, data centers can currently be built "by right" in eight Charlotte zoning districts, including next to homes and in the heart of Uptown, without city approval.
- And because of the AI boom, that is what's happening. Faster than leaders can keep up with.
What they're saying: "There's so much we don't know about data centers," said council member JD Mazuera Arias, "but there's so much we do know about data centers that we should have acted on this way beforehand."
The latest: If the temporary halt is put in place, the city would not accept or approve new data center applications while it studies impacts on residents, including unknown health and environmental risks, as well as high water and power use.
- Duke Energy, which is actively courting data centers, was invited to Monday's council meeting but did not attend.
State of play: A moratorium would not apply to already permitted centers.
- That includes AREP's 1.2 million square feet approved in University City, and Digital Realty's 2.34 million square feet along Moores Chapel Road.
Zoom out: Charlotte isn't the only city grappling with the explosive demand for data centers.
- Moratoriums are becoming a popular option to slow construction across the state, including in Durham (60 days), Apex (one year) and Chatham County (one year), where a developer is suing the county over their pause.
- "Legal risk should not take precedence over human risk," Mazuera Arias said.
Yes, but: Charlotte's situation is trickier because, unlike other municipalities, the city has already defined and created regulations for data centers in its zoning ordinance.
- A new state law that went into effect in December 2024 limits the city's ability to "downzone," or change existing zoning laws. So, staff may need to get creative when coming up with policies to respond to residents' concerns.
- "When it comes to growth, when it comes to definition of data centers, we are leading," council member Dimple Ajmera said, "but when it comes to protecting our community, protecting our neighborhoods and protecting our health, we are being reactive."
What's next: The public hearing is May 26. Council would vote on the moratorium on June 8.