ASHEVILLE, N.C. (828newsNOW) — Asheville leaders are moving to hit the pause button on new data center development while city staff study how the rapidly growing industry could affect local infrastructure, neighborhoods and long-term planning goals.
The Asheville City Council’s Planning, Economic Development and Environment Committee voted Tuesday to recommend a one-year moratorium on new data center applications, giving staff time to develop regulations and zoning standards for a land use that currently is not specifically addressed in the city’s development code.
Planning and Urban Design Director Stephanie Dahl said data centers have emerged as a new and increasingly significant land use that can place heavy demands on electrical and water systems while also raising concerns about noise, land use compatibility and impacts on surrounding properties.
“We currently lack a definition for data centers in our Unified Development Ordinance,” Dahl told committee members. “Because of that, we don’t have policies, strategies or tools to effectively manage those impacts on our community.”
Dahl said the absence of regulations creates uncertainty for developers, city staff and residents.
While no data center applications have been submitted to the city, staff said the proposed moratorium would provide time to study the issue before a project is proposed.
The moratorium would apply to new developments or changes in use that fall under a federal industry classification associated with data processing, hosting and related services. It would not apply to server rooms or data processing equipment that are incidental to another permitted use.
City Attorney Brad Branham said North Carolina law specifically authorizes local governments to enact temporary development moratoriums when additional time is needed to address emerging land-use issues.
“This is a legally authorized tool for local governments in North Carolina,” Branham said.
Under state law, a moratorium must be temporary and reasonable in length. Staff is recommending the maximum one-year period, which Branham said aligns with legal guidance and would provide sufficient time to develop regulations.
The process would include reviewing how other communities regulate data centers, consulting industry experts, evaluating infrastructure impacts and gathering public input.
Dahl said staff would spend the first several months researching regulations adopted elsewhere and analyzing issues including electrical demand, water consumption, site design and compatibility with surrounding uses.
The review also would examine whether there are appropriate locations for data centers within Asheville.
Committee members voiced strong support for the proposal.
Council member Sage Turner said the city faces important choices about how land, energy and infrastructure are used.
“Every time we dedicate land, energy and infrastructure to one use, we’re choosing not to do something else,” Turner said. “Given our housing needs and our economic priorities, I don’t see large-scale data centers as the right fit for us.”
Turner also acknowledged that North Carolina law limits a city’s ability to outright prohibit certain land uses, making regulation the more likely path forward.
Council member Kim Roney said she was eager to move quickly before developers seek approvals.
“I appreciate staff helping us expedite before we end up getting applications in,” Roney said, noting that communities across North Carolina have seen developers move projects forward before moratoriums take effect.
Roney also urged staff to study additional issues during the review process, including noise impacts, infrasound, heat island effects and electrical grid demands.
Dahl agreed those topics should be included in the city’s analysis.
Following discussion, the committee unanimously voted to recommend that City Council adopt the moratorium. A public hearing is scheduled for next week’s council meeting, where council members will decide whether to enact the ordinance.
If approved, the moratorium would take effect immediately and remain in place while staff develops recommendations for future zoning and development standards.
During public comment, Asheville resident Michelle McKinney praised the committee’s action and said residents have questions about whether large-scale data centers are compatible with the city’s climate, sustainability and infrastructure goals.
“I’m really excited to see this moving forward,” she said. “There’s lots of questions that hopefully we’ll get the chance to answer in the year that the moratorium is in effect.”
If the moratorium is adopted, staff would return to City Council within the next year with proposed regulations governing where and how data centers could be developed in Asheville.