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City To Consider Data Center Moratorium Tonight

While only one data center is currently planned in Columbus County, Whiteville officials want more time to consider the impact of the controversial tech facilities.

Council will consider a one-year moratorium on data centers, data processing facilities, cryptocurrency operations and all activities associated with data centers at tonight’s regular meeting.

Facilities “require considerable amounts of electricity and water usage, and their operation can result in high greenhouse gas emissions, widespread pollutant exposure from back-up diesel generators, e-waste, noise, and other local impacts to residents and communities living near the facilities,” the agenda item before the council reads. “The City of Whiteville Planning Department is in the process of developing zoning standards and mitigation methods for these intensive land use types which may cause detrimental harm to the natural environment and the quality of life for City residents. The City seeks time to develop such standards.”

Staff explored options other than a flat moratorium, according to the agenda, but found none.

“The City has determined that to simply allow this intensive land use to be permitted without regard to location, height, size, density, population, industry, residence, or other purpose would be counter to the stated goals of the City of Whiteville Comprehensive Land Use Plan and hinder implementation of the Zoning Ordinance,” according to the agenda item.

It’s not the first time the city has placed a moratorium on new businesses to provide officials time to plan.

In 2006, several adult-oriented businesses applied for permits in the county and the town of Bolton. Since there were no rules prohibiting such establishments, planning officials scrambled to set up new policies. Although the city was prevented from setting a long-term moratorium, the staff and council came up with strict zoning regulations that all but banned adult businesses in the city, with very few exceptions.

In another effort to regulate controversial businesses, the county and city in recent years passed new ordinances prohibiting vape and tobacco shops from being opened within close proximity to schools and churches.

Data centers provides large, long-term storage of digital information and support structure through networked servers, according to Forbes Magazine. The growth of cloud storage, artificial intelligence and other tech expansions are driving the need for data centers worldwide. Local governments across the state are scrambling to understand data centers, and how they operate amidst concerns over excessive water and power usage.

Canton recently approved a moratorium similar to the one being considered in Whiteville. Durham County banned larger data centers until 2027, and the city of Charlotte issued a freeze against all centers while the environmental impacts are studied.

Edgecombe County saw a $19 billion AI data center cancel its plans for that area after local criticism and discussion of a moratorium.

In the General Assembly, the Ratepayer Protection Act (Senate Bill 730) has moved through the State House. SB 730 requires data centers pay for upgrades to electrical infrastructure, rather than the cost being passed down to residential customers. Solons have also moved to repeal sales tax exemptions for data centers, a policy pushed by former Gov. Roy Cooper and Gov. Josh Stein as an economic incentive for data center developers.

Carolina Journal reports that 14 states are currently considering outright bans on data centers.

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