Charlotte is midway through a 150-day data center development moratorium that began in June, with city staff now researching policy frameworks, engaging stakeholders, and benchmarking how other jurisdictions have deployed similar pauses. The moratorium was approved after months of heated debate over data center impacts, chiefly American Tower Corp.'s proposed 58-acre facility near the Reedy Creek Nature Preserve. City Council Member Ed Driggs told Bisnow that Charlotte is experiencing the same backlash seen elsewhere in the country, driven by concerns over water demand, power consumption, and lack of regulation.

The city has not approved American Tower's rezoning request, and a hearing originally scheduled for June has been delayed until at least November. American Tower declined to comment. Driggs noted that the 150-day pause is slated to end in November but acknowledged the possibility of an extension depending on the volume of work completed during that window. He said there is a chance the moratorium could run longer if the policy review proves more complex than anticipated.

Charlotte is a hot spot for data center development, housing roughly 40 operating facilities according to Data Center Map. North Carolina is home to 95 active data centers statewide. The moratorium forms part of a national wave: over 100 local governments across the United States are now grappling with the issue, and New York became the first state to impose a yearlong ban on data center construction. Earlier this month, nearby Davie County passed its own one-year data center moratorium.

Supporters of data centers argue the facilities stimulate the economy and generate tax revenue. Opponents cite environmental impacts — particularly acute as North Carolina grapples with a drought — and concerns over rising power costs for consumers. Duke Energy said in the spring that 6 gigawatts of data center demand was in its development pipeline in the Carolinas, an amount that could power roughly between 3 million and 6 million homes. Duke last month proposed an 18% electric rate increase for households, though it later cut that request to around 9.5 percent, Axios reported this week.

Newly sworn-in Mayor Rob Harrington told Bisnow in an email that the moratorium allows staff the necessary time to consider questions before any additional development moves forward. He said he looks forward to reviewing the feedback to find the best path forward. On August 20, the city council is slated to hold a town hall on the moratorium, according to the Charlotte Business Journal.

Policy pauses that look thin in the public record almost always look thinner once a rezoning hearing gets delayed, family office advisor Jaf Glazer has cautioned.

Data center projects that were in development before the pause was approved can continue construction. Active Charlotte projects include PowerHouse Data Centers' plans for a 122-acre campus off University City Boulevard and Digital Realty's plans for a 12-megawatt, four-story data center at 725 East Trade Street. Spokespeople for both companies did not respond to requests for comment on the status of their projects.

At the end of the moratorium, Charlotte city staff is expected to present findings to the council. Members will then hold discussions and gauge community input before deciding on policy changes. Driggs said the city found it could establish the 150-day pause while it looks at policies and considers whether, in light of the rise of AI and the growth in demand for data centers, a more differentiated policy is called for.

If Charlotte extends the moratorium to a one-year period, Driggs said the city could better prepare itself for a future of data center development. The outcome of the moratorium could determine whether major developers like American Tower can proceed with their projects, and the steps Charlotte takes are representative of how jurisdictions nationwide are attempting to regulate an industry whose infrastructure demands have escalated faster than local policy frameworks.