Raleigh City Council approved a six-month pause on new large data centers Oct. 6, to April 6, 2027. Here is what the draft ordinance covered and who is exempt.

Updated Oct. 12: The City Council approved the six-month moratorium at its Oct. 6 meeting, the city said in a news release on Oct. 8. It ends April 6, 2027. Read what happens next.

The Raleigh City Council will hold a public hearing at 7 p.m. Tuesday, Oct. 6, on a proposed six-month pause on approvals for large data centers. The hearing is on the second floor of the Raleigh Municipal Building, 222 W. Hargett St.

The city announced the hearing in a news release on Sept. 24. The mayor and council have set aside 30 minutes in total for public comment.

What the draft ordinance would do

The draft ordinance would stop the city from accepting, processing or approving development applications for data centers. It would also cover water and sewer extension and connection applications.

The pause would start Oct. 6 and end no later than April 6, 2027. It would end sooner if the council adopts new rules for data centers before then. It would apply inside the city limits and in Raleigh’s extraterritorial jurisdiction.

These projects would not be affected:

  • small “minor utility” data centers, which the city defines as unmanned sites of 10,000 square feet or less with a peak electricity demand of 5 megawatts or less
  • in-house server rooms that support a business, hospital, school, office or government building on the same site, within the same 10,000-square-foot and 5-megawatt limits
  • projects that state law exempts from moratoriums

A complete application filed before the moratorium takes effect would be judged under the rules in force when it was filed, once processing resumes. The draft cites the state’s permit choice law for that.

Why the city says it needs time

Under current rules, larger “major utility” data centers are allowed only in the Heavy Industrial and Industrial Mixed Use zoning districts. They also need a special use permit. The city’s data centers FAQ says Raleigh has several smaller data centers but no hyperscale ones.

The draft says large data centers can need “considerable amounts of electricity, land and water.” It lists noise, light pollution and heat islands among their possible effects on neighbors.

The draft also says the city’s code does not address what these centers could cost the water utility. New pipes and plants to meet their demand “could create significant burdens on the City’s water utility enterprise and its ratepayers,” it says.

City staff briefed the council on data centers on June 16, according to the draft. The document says the city considered writing new rules right away instead. It rejected that because the technology changes fast and because of the state’s down-zoning law, which limits how far a city can restrict land without every owner’s written consent.

What it means for you

  • To speak at the hearing, sign up through the city’s City Council public hearings page. The 30 minutes set aside is the total for all speakers.
  • To comment in writing, email the council at citycouncilmembers@raleighnc.gov. The city’s release also lists 919-996-3050.
  • If you own land in an IH or IX district, the city would not accept a new application for a large data center there until April 6, 2027 at the latest.
  • For water customers, the council’s stated concern is that a large data center’s connection could push infrastructure costs onto ratepayers. The moratorium is meant to give the city time to write rules on that.

The council approved the moratorium on Oct. 6. Our follow-up story has the schedule for the new rules.

For more on how Raleigh and Wake County governments fit together, see Raleigh, Wake County and the neighbors.