Data Center Moratorium

At a glance

• What: An 18-month moratorium on acceptance, processing, and approval of development applications for data centers, cryptocurrency mining operations, and similar uses.
• Where it stands: Ordinance adopted Aug 27, 2026, 7-0. Council voted to use 1 megawatt (MW) threshold instead of 25 MW annually to define scope.
• Next: Staff will spend the moratorium period studying data centers, engaging community and regional partners (Jordan Lake One Water, power utilities, etc.), and developing recommended Land Development Ordinance amendments to permit or regulate data centers with appropriate standards.

Ordinance Details

• Scope: 18-month moratorium on data center development applications (exceeding 1 MW).
• Exemption: Enterprise or small-scale data processing equipment/server rooms under 1 MW may continue (e.g., at hospitals, software companies, municipal governments).
• Context: Data centers growing across Triangle region; not currently defined in Cary LDO; raises questions about water, energy demand, noise, and site design standards.

Council Discussion

Support for moratorium: All members supported the approach as a pause to develop proper regulations.

• Weinbrecht and Craig shared observations from Ireland visit to Meta data center: renewable energy sourcing, water recycling, 92% waste diversion, community grant fund ($4.8M since 2019), commitment not to locate in unwelcoming communities.
• Bush advocated for understanding water quality and discharge (stormwater, groundwater, cooling) and treating water as "one water" rather than siloed.
• Kohn-Johnson concerned about noise pollution from AI/GPU cooling and emphasized need for rock-solid definitions and clear ordinance language (not murky, allowing staff discretion via exceptions).
• Huang noted that AI and data centers support biotech research (e.g., Moderna vaccine) and that a moratorium is not a "no" to AI.

Threshold discussion: Council amended ordinance language from 25 MW annually to 1 MW of demand at peak to clarify scope. Energy Manager Caliendo noted one megawatt can power ~1,000 homes; hospital ~2–3 MW, software HQ ~10 MW, entire town operations ~10 MW.

Sources

• Minutes: https://carync.iqm2.com/Citizens/FileOpen.aspx?Type=12&ID=6769
• Ordinance: Data Center Moratorium Ordinance (attached to meeting agenda)

Log

2026-08-27 - Town Council Meeting

Ordinance establishing 18-month moratorium passed 7-0 with amended language (1 MW threshold).

• Public hearing detail (from auto-captions): four written comments and five speakers; staff proposed a study of power, water, noise and site design with a recommended ordinance to follow; council members asked for firm definitions and attention to water quality.
• 2026-09-15 - Town Council Quarterly Meeting - Listed among the non-negotiables; about 17 months of the 18-month moratorium remained.