City leaders call for data center moratorium, business leaders fear it could hinder future projects

CHARLOTTE — Charlotte Mecklenburg Climate Leaders and a few city councilmembers are calling for a five month moratorium on data center development in Charlotte, but members of the tech industry fear it could hinder future projects.

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A construction site off University City Boulevard is one of several data center projects either proposed or already in development in the Charlotte area.

Those who live around it, like Antoinette Mingo, say it caught them off guard.

They say the city needs a moratorium on these projects, so, in the future, residents like them can have more of a say.

“We want to live a good quality of life like everyone else,” Mingo said.

She said she’s worried it will bring noise and air pollution to the area, use up local water, and hurt her property value.

“Help us to keep the value of our homes,” she said.

The development was already under construction before she got a chance to ask many questions.

Data centers can be built in seven different zoning districts in the city and often can be built by right, according to the city of Charlotte’s Unified Development Ordinance.

That means the data centers don’t need extra studies or approvals if developers choose to build in a land that’s already zoned for this kind of development.

‘Do our homework’

City council member Dimple Ajmera says that’s why the city needs a moratorium to give council a chance to update its rules before development explodes across the region.

“A 150-day pause allows us to do our homework,” she said. “(It) allows us to put safeguards and guardrails to protect our communities and protect residents who live near these communities.”

‘Close the door’

Dan Diorio, vice president of state policy for the Data Center Coalition, says he understands the right for local communities to set their own regulations on the data center industry, but he worries a moratorium could close the door to negotiations too early.

“It sends a long-term signal, ultimately to economic development within that jurisdiction, and what that means for other industries that may come in and look to invest and whether or not it creates significant uncertainty,” Diorio said.

City council plans to vote on the proposed moratorium at their meeting on June 8.