Economy

A rural NC city delays its decision on data centers

In the rural western NC city of Kings Mountain, leaders are at odds over extending a moratorium on data centers.

A rural NC town delays its decision on data centers
In the rural western NC city of Kings Mountain, leaders are at odds over extending a moratorium on data centers. (USA Today via Reuters)

Kings Mountain council debated for an hour over an extension for a moratorium on data centers in city limits at its July 28 meeting, but delayed making a decision until August.

The city council voted on a six-month moratorium in February, and council received an update in June about a potential new state bill that would address the surge of data centers and would create standards around them. Senate Bill 730 passed the House and is currently back in the Senate.

Council was initially supposed to vote on a city ordinance at the August meeting.

Henry Earle, assistant city manager, said the planning and zoning board is now recommending a 12-month extension on the moratorium while staff waits to find out what restrictions or ordinances the state might pass and continue working on city standards to address noise, water and utility use.

Earle said things have changed rapidly over the past five months, including how data centers are powered.

“This is an ongoing situation,” he said. “In fact, this bill has not moved in awhile. Not knowing what the state is doing, and in an effort to not get out in front of the state, we’re requesting an extension of the moratorium.”

Earle said this would have the issue back before council in February 2027.

He said staff felt it was prudent for the city to wait and see what the state approves.

Councilman Scott Neisler spoke against an extension.

“I’m definitely going to be against extending this moratorium and the real reason is we really have to focus in on economic development,” he said. “We’ve been talking about trying to get educated as far as this is concerned and based on data I have seen, what development has been proposed I think it’s well within what we can provide.”

Neisler said he felt delaying by a year was kicking the can down the road and stymying development.

Councilwoman Heather Lemmond asked Earle if it stalled out, how close Kings Mountain was to creating their own ordinance and moving it forward.

Earle said: “We have something in planning that is pretty good. If push comes to shove, we could have something in two to three months.”

He said there are no data center inquiries in the pipeline that would be impacted by an extension.

No one signed up to speak on the topic during the public hearing.

Reporting by Rebecca Sitzes, Shelby Star / The Shelby Star

USA TODAY Network via Reuters Connect

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