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City Council puts six-month pause on major AI Data Centers

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After having a packed public hearing on Monday, August 17, Greensboro City Council voted Tuesday night to establish an 180-day moratorium on large data center projects, temporarily halting the acceptance, processing and approval of applications for facilities that would draw more than 10 megawatts of electrical power. The 8-0 vote, with one recusal from Mayor Pro Tem Denise T. Roth, followed two days of public comment and growing concern over how rapidly artificial intelligence and data-storage facilities could reshape the city’s infrastructure, environment and neighborhoods.

The moratorium runs through February 14, 2027, and applies to data centers, data storage and processing facilities, and similar uses above the 10-megawatt threshold. Projects that already have permits or are under construction are not expected to be affected, while future proposals will be subject to any new rules the city adopts after the pause ends.

City leaders had initially considered a 120-day moratorium but extended the pause to six months after hearing from residents who said four months would not provide enough time to understand the potential consequences of high-demand data centers.

“I do not think that four months is an adequate time frame to solicit community input,” said resident Brigette Rasberry. “One would have to question whether you truly want community input or merely checking off a box.”

Council heard from more than 35 residents, with not one person advocating for data centers, but rather urging council members to go much further, calling for a 32-month moratorium and holding signs marked “32.”

During the public hearing, residents raised concerns about water use, strain on the electrical grid, noise, air quality, land use and the possibility that utility costs or environmental burdens could fall unevenly on nearby communities.

Several speakers said the city should require more detailed impact studies before approving any new large-scale facilities tied to the fast-growing demand for artificial intelligence computing.

“Research needs to be happening,” said Aiden Loretz, an environmental justice community organizer with Haw River Assembly. “Which will result in public reports and forums on the city’s current water use for large load industrial users, and how the predominantly Black populations of East Greensboro in districts one and two are already dealing with the disproportionate impacts of environmental injustice.”

Mark Cummings, a Greensboro lawyer and a former District Court judge, said that residents must not forget to take the conversations to other entities that will have a say in this matter.

“Who is not here? The people who have put forth these data centers,” Cummings said. “What do they know that we don’t know that they don’t even have to come and petition this council like you guys do? We have to hold them accountable.”

Mayor Marikay Abuzuaiter said the goal is to make sure future regulations are thoughtful, well-informed and responsive to Greensboro residents.

During the 180-day moratorium, council members plan to hear from subject-matter experts, review best practices from other communities and consider possible amendments to the city’s Land Development Ordinance.

The city has scheduled public work sessions as part of that review, including a Water and Wastewater Considerations session on September 10 and a State Efforts and Frameworks session on September 24. Those meetings are expected to be open to the public, in person and virtually.

Several council members agreed that the 120-day timeline would create a sense of urgency for both council and city staff to develop and adopt the necessary policies.

“We’re asking you to come with us during this time period and if we get to a point to where we need to add more time we will,” said Crystal Black, District 1 City Council member. “I think that we can do this in six months, and I think that once you see how we have this laid out, you will feel more comfortable about it.”

The vote places Greensboro among several North Carolina municipalities that have recently slowed or reconsidered data center development. Alamance County commissioners recently approved a one-year moratorium last week; Davie County approved a one-year suspension in July; and Forsyth County commissioners recently rejected a rezoning request for a proposed AI data center complex in Rural Hall.

Residents also expressed concern over a proposed AI educational facility that will house an AI data center called the “Dream Center.” In August 2022, the Greensboro City Council unanimously approved a $530,359 incentive grant for Atlanta based ImpactData to build a digital infrastructure facility at Gateway Research Park, which is in close proximity to the A&T Farm. The company plans to invest $108.5 million and create 28 jobs over four years.

City Attorney Lora Cubbage made it clear at the public hearing and at the following city council meeting that the city has never approved an actual data center, but rather an incentive with stipulations for the developer. The Gateway Research Park Board would be the entity to ultimately decide; however, the land is state-owned and zoned for public and institutional use only. Gateway Research Park Board would have to first petition the city to have it rezoned for an ‘outright’ data center.

For residents who packed the chambers during past council meetings as well as the meetings on Monday and Tuesday, the council’s decision was both a victory and a disappointment. The six-month pause gives Greensboro time to write rules before more major projects arrive, but many speakers made it clear they will continue pressing for stronger protections and a slower timeline before the city opens the door to large-scale AI data center growth.

Details about upcoming Greensboro City Council work sessions will be posted at www.greensboro-nc.gov/DataCenters.