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In a move reflecting growing concerns about the impact of data centers, Asheville city staff are slated to present a plan to temporarily pause the approval of such developments for a year. This discussion is scheduled for Tuesday, as part of a broader consideration of the environmental and infrastructural effects of these centers.
Asheville joins a trend among Western North Carolina communities contemplating a halt on data center construction, similar to actions taken by Boone, Canton, Woodfin, and counties like Swain and Clay.
Data centers serve as critical hubs for server storage, demanding substantial energy and water resources to maintain operations. As demand for computing power, particularly from artificial intelligence, escalates, the emergence of larger facilities has prompted scrutiny among local officials.
Currently, these facilities, often referred to as “hyperscalers,” face minimal federal regulation. While North Carolina offers tax benefits to companies establishing data centers, recent moves by Governor Josh Stein and state Republicans suggest a reevaluation. A proposed bill aims to limit local tax incentives and require Duke Energy to safeguard ratepayers amid rising electricity demands.
Asheville City Council member Maggie Ullman emphasized the need for a temporary halt to allow for a comprehensive understanding of data centers’ implications. “What it would take to regulate these is to have an explicit legal definition of a data center,” Ullman remarked. “We don’t have that yet.”
The proposed one-year moratorium will provide the city time to explore long-term strategies. According to Brad Branham, Asheville’s city attorney, the city currently lacks a definition for data centers in its development ordinance, resulting in an absence of zoning standards for such facilities.
Branham highlighted the urgency, stating, “Like so many other local governments throughout the State, the City of Asheville believes that it must act now to ensure any future data center development would only occur within the City under specific rules and regulations so as to protect the public, our infrastructure, and our natural resources.”
The Asheville City Council is scheduled to vote on the moratorium proposal during its meeting on June 26.
