Charlotte is in the early stages of working toward a new data center policy amid a development moratorium, part of a growing wave of project pauses happening in jurisdictions around the country.

Since its 150-day moratorium began in June, city staff has been doing research, engaging with stakeholders and working to create policy recommendations, Charlotte officials told Bisnow. Part of that research involves looking at how other cities and counties have utilized moratoriums in recent months, City Council Member Ed Driggs said.

The steps the city takes during its moratorium are representative of how more than 100 local governments across the U.S. are grappling with an issue that has sparked escalating backlash, driven by data centers’ massive demand for water and power. The outcome of Charlotte’s moratorium could determine whether major developers like American Tower Corp. can proceed with their projects.

“We are experiencing in Charlotte the same sort of controversy you’re seeing elsewhere in the country, over their impacts and lack of regulation,” Driggs said in an interview.  

Charlotte approved its moratorium following months of heated debate over the build-out of data centers in the city, largely sparked by American Tower’s controversial proposed project that would sit on 58 acres near Reedy Creek Nature Preserve. 

The city hasn’t approved American Tower’s rezoning request to build its data center, and a hearing for the project was delayed from June until at least November. American Tower declined to comment for this story. 

The 150-day pause is slated to end in November, but Driggs said there is a chance it could get extended.

“There’s a possibility, depending on what work gets done during the 150 days, that the moratorium could be longer,” he said.

Charlotte is a hot spot for data center development, housing roughly 40 operating facilities, according to Data Center Map. North Carolina is home to 95 active data centers.

Several cities in North Carolina have approved moratoriums as the issue reaches the state level nationwide. Earlier this month, nearby Davie County passed its own one-year data center moratorium. New York became the first state to impose a yearlong ban on data center construction as a handful of other states consider similar measures.

While supporters of data centers say the facilities will stimulate the economy and generate tax revenue, opponents cite concerns over environmental impacts — especially as North Carolina grapples with a drought — and a potential spike in power costs for consumers. 

Duke Energy said in the spring that 6 gigawatts of data center demand was in its development pipeline in the Carolinas, an amount that could power roughly between 3 million and 6 million homes. Duke last month proposed an 18% electric rate increase for households, but it cut that request to around 9.5%, Axios reported this week.  

Newly sworn-in Mayor Rob Harrington told Bisnow in an email that the moratorium in Charlotte “allows staff the necessary time to consider questions before any additional development moves forward.” He said he looks forward to reviewing the feedback to find the best path forward. 

The site near 8036 Hood Road in Charlotte where American Tower Corp. has proposed a data center

As the moratorium continues, data center projects that were in development before the pause was approved can continue construction. 

Data center projects in Charlotte include PowerHouse Data Centers’ plans for a 122-acre campus off of University City Boulevard and Digital Realty’s plans for a 12 megawatt, four-story data center at 725 E. Trade St. Spokespeople for the two companies didn’t respond to requests for comment on the status of their projects.

On Aug. 20, the city council is slated to hold a town hall on the moratorium, according to the Charlotte Business Journal.

At the end of the moratorium, Charlotte city staff is expected to present its findings to the council, and members will then hold discussions and gauge community input before deciding on policy changes, Driggs said.  

“We found that we could establish this 150-day pause while we look at our policies and consider whether, in light of the rise of AI and the growth and demand for data centers, a more differentiated policy is called for,” he said.

If it extends the moratorium to a one-year period, Driggs said Charlotte could better prepare itself for a future of data center development.

Charlotte residents packed a city council meeting this week to rally in support of a pause on data center development.

The Charlotte City Council held a public hearing during a meeting on Tuesday to discuss a proposed 150-day moratorium. The public hearing was a prerequisite to a planned council vote on June 8. 

The hearing comes after several weeks of growing public pushback against proposed data center projects in the city. Dozens of people were protesting outside, many part of activist groups, according to The Charlotte Ledger. Out of the 36 people who spoke up at the hearing, only five did not support a moratorium, the Ledger reported.

Citizens detailed their anxieties about the presence of data centers in the metro area, with some suggesting the centers be completely banned. They cited negative environmental impacts and increased energy costs stemming from what they called excessive water and power requirements.

Charlotte is facing drought conditions and water restrictions. But large data centers can use up to 5 million gallons of water each day, according to The Brookings Institution. 

“We are concerned that the growth of local data centers may overallocate our limited resources and decreases our ability to respond to drought,” resident and Catawba Riverkeeper Brandon Jones said. “Sustainable water management requires careful planning and robust coordination between all users, including data centers.”

Some spoke directly against American Tower Corp.’s proposed data center in east Charlotte, which has seen opposition at every stage. The project would span 40K SF on a site planned off of Hood Road, near Reedy Creek Nature Preserve. The developer delayed its zoning request until June 15.

“The question for me is, how do we build a footprint that makes Charlotte a national leader in distributed, resilient, redundant infrastructure without devouring our land, our water and our power?” said citizen Craig Reynolds, a business executive, whose question was met with applause.

He asked council members to consider the sheer scale of data center projects, which he said can command “eight to 14 times the combined residential power” of a city.

Another local, Tina Shull, a professor at the University of North Carolina at Charlotte, said she is “deeply concerned” about the impacts of the American Tower data center in her neighborhood, as well as the two already approved hyperscale centers in the city.

“This is a request to stop and make a new plan for data centers entirely,” Shull said. “A 150-day moratorium and an environmental impact assessment are the first steps.”

Resident Larry Shaheen, a commercial real estate lawyer at The McIntosh Law Firm, spoke in favor of data centers, saying they provide “a significant amount of tax revenue that is going to go toward funding important needs of the city of Charlotte.” 

He also said the council doesn’t have the authority to cease construction on an already started project or to change certain zoning classifications. His comments drew audible “boos” from the room.

There has been notable backlash against data centers in communities across the U.S. over the last year, including across the Carolinas. Moratoriums in the region are becoming increasingly common, with Durham passing a 60-day moratorium earlier this month, Apex passing a one-year moratorium in April, and Chatham County imposing a one-year moratorium in February. 

Still, there are more than 90 data centers in North Carolina, according to Data Center Map, and 40 in Charlotte, according to WCNC. More are expected as the rapid artificial intelligence boom continues. 

The Charlotte City Council is prepping to vote on hitting pause on new data center development. 

The council on Monday agreed to hold a public hearing on a data center moratorium on May 26, a prerequisite before it can vote on the moratorium on June 8, according to The Charlotte Observer. 

The debate will center on a possible 150-day moratorium to allow city officials to review the impacts and risks of data centers and to craft regulations around their development. 

At the meeting, some expressed concern that further data center development would drive up electricity costs. Others worried about how such development may be affecting the quality of life in the city because of noise and pollution. 

“This is about our children, this is about our health, and this is about whether families can peacefully live in their homes,” said Dimple Ajmera, an at-large council member, according to a Queen City Nerve report. 

North Carolina currently has more than 90 data centers, according to Data Center Map. The Charlotte metro area has over 30 data centers, with more proposed. 

AREP has plans for a 1.5M SF campus in University City, and Digital Realty is plotting a potentially 3M SF one on Moores Chapel Road. American Tower Corp. is proposing to build a 40K SF facility near Reedy Creek Nature Preserve.

Data centers are currently permitted by right in eight zoning districts in Charlotte without city approval. These districts include residential areas, the Observer reported. 

Any potential moratorium will not affect already permitted plans.

The council’s moves come as local backlash against data centers rises in communities across the Carolinas. Durham passed a 60-day moratorium last week, Apex passed a one-year moratorium last month, and Chatham County passed a one-year moratorium in February. The county was sued in April by a developer after the moratorium was imposed.