Business

NC judge rules Chatham County data center can go forward despite moratorium

A Chatham County data center project will move forward despite the county’s moratorium, following a court decision. 

NC judge rules Chatham County data center can go forward despite moratorium
A Chatham County data center project will move forward despite the county’s moratorium, following a court decision. (Shutterstock)

by Christine Zhu, NC Newsline
September 22, 2026

A Chatham County data center project will move forward despite the county’s moratorium, following a court decision. 

In February, Chatham County commissioners enacted a year-long moratorium on new data centers. The ban remains in effect until Feb. 11, 2027, or until new zoning regulations are adopted — whichever comes first. 

Read More: North Carolina Democrats criticize Whatley for Duke Energy and data center investments

But it won’t stop at least one new data center from getting underway. Data center developer Eco TIP West plans to build a 750-megawatt data center at the Triangle Innovation Point West business park near Moncure.

The developer sued the county in April, arguing that its project was already in progress when county commissioners approved the moratorium, and therefore should have been exempted. 

Superior Court Judge John Morris ruled last week in favor of the developer.

“After careful consideration of the file, counsels’ legal briefs, Plaintiff’s motion for summary judgment, and the exhibits and arguments of counsel during the August 31 hearing, the Court finds that there is no genuine issue as to any material fact and that Plaintiff is entitled to a judgment in its favor as a matter of law,” Morris wrote. 

Three more NC localities weigh pauses on data centers as developer backs away from Raleigh project

The company spent $11 million on the project, according to its court filing. The developer noted in its lawsuit that the zoning of the intended site permitted its use for a data center, and said it had been working with the county in good faith before the moratorium was passed.

Morris ruled that Chatham County must pay damages to Eco TIP for trying to slow down work on the project. 

“The Moratorium, and the County’s refusal to recognize that Eco TIP’s existing data center project is exempt, has and continues to cause Eco TIP substantial financial and other losses,” the developer’s lawyers wrote in a brief. “The county did not simply make one mistake but violated almost every applicable statute and governing legal principle. In short, the Moratorium is a legal trainwreck that should have never been approved, and never been applied, to take away Eco TIP’s property rights in its project.”

At least 30 local governments across North Carolina have passed moratoria on data center development in recent months. It’s unclear how this lawsuit will affect other bans.

NC Newsline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. NC Newsline maintains editorial independence. Contact Editor Laura Leslie for questions: info@ncnewsline.com.

Keep Cardinal & Pine free for everyone

If you found this story useful, would you consider supporting Cardinal & Pine?

Every day, our team works to provide North Carolinians with free, fact-based reporting about the issues, policies, and decisions shaping life across the state. We believe everyone deserves access to trustworthy local news—not just those who can afford a subscription.

That's why you'll never hit a paywall here (though we may ask you to sign up for our newsletter). But keeping our journalism free depends on readers who believe informed communities are worth investing in.

If our reporting has helped you better understand what's happening in North Carolina, please consider making a donation today. Every contribution helps us continue reporting, informing, and serving communities across the state.

Billy Ball
Billy Ball Senior Newsletter Editor
Support our team

Categories: , , , , , , , ,

Authors

  • NC Newsline is a Raleigh-based nonpartisan, nonprofit newsroom dedicated to fearless reporting and hard-hitting commentary that shines a light on injustice, holds public officials accountable, and helps improve the quality of life throughout North Carolina. They’re part of States Newsroom, the nation’s largest state-focused nonprofit news organization.