Summary (Updated 6/29/26): City Council unanimously approved a one-year data center moratorium (agreeing not to build new data centers, which can have negative impact on the communities in which they are built), giving staff time to develop informed regulations that would mitigate their impact before any proposals move forward. Read more in the Report Back below.

Summary (Original): Council will consider a one-year moratorium on new data centers while staff study their impacts and develop regulations. We view this as a prudent and responsible approach.

The Facts: Asheville’s development regulations currently do not specifically define or regulate data centers. City staff have expressed concerns about the potential impacts of data centers on electrical infrastructure, water systems, neighboring properties, noise, and heat generation.

The proposed moratorium would temporarily pause approval of new data center development while staff research best practices, engage stakeholders, and develop recommendations for future regulation.

You can see the staff report on this issue here and the presentation slides here.

Our Assessment: The proposal reflects a common-sense principle: major decisions should be informed by adequate information.

Rather than allowing a new land use to proceed under unclear regulations, the City is proposing to study the issue, engage the public, and develop a framework for evaluating future proposals. That approach reduces uncertainty for residents, staff, and developers alike.

Things to do: No action is needed at this time.

Report Back

Council voted unanimously to adopt a one-year moratorium on new data center development. Staff emphasized that no projects are currently pending, but argued that the City needs time to establish definitions, study impacts, and develop land-use regulations before considering future proposals to build new data centers.

During discussion, council members highlighted concerns about the impact of data centers, including electricity demand, water use, neighborhood compatibility, and long-term costs to residents. Several also emphasized that the moratorium is intended to create an informed regulatory framework to mitigate impacts, not simply delay decisions regarding the building of data centers indefinitely.