Item:
Title
Public Hearing - To Consider the Adoption of a Proposed Moratorium on the Acceptance and Processing of Applications for New or Expanded Data Centers, with potential exemptions, with Durham County (90min)
Body
Date of BOCC Meeting: August 24, 2026
Request for Board Action:
Agenda Text
The Board of County Commissioners will be holding a public hearing considering the adoption of a moratorium on the acceptance and processing of applications for new or expanded data centers in Durham County. Large-scale data centers, data processing facilities, cryptocurrency mining operations, and similar uses can require significant electricity and water resources and may have impacts on infrastructure, the environment, and surrounding communities. As data centers have expanded across the state and nation, some jurisdictions have enacted temporary moratoria on new or expanded facilities.
Durham County’s existing regulations were not developed with these specific types of high-impact uses in mind. The County needs time to develop appropriate, comprehensive standards to ensure that any future development, and expansion of any such facilities, is consistent with the County's long-term land use plan and protects the public’s health and interests. The table of permitted uses in the current Unified Development Ordinance does not define “data centers,” “data processing facilities,” “cryptocurrency mining operations,” or any other uses associated with data processing facilities.
Additionally, the Durham Code of Ordinances does not consider the impact of the aforementioned uses on existing County infrastructure. Some data centers are already located in Durham, but the impact of their continued development and expansion is not yet regulated. A temporary moratorium on accepting and processing new applications for such facilities is a reasonable and necessary measure to allow County staff and the Planning & Development Department sufficient time to study the issues, engage with stakeholders, draft appropriate amendments to the Unified Development Ordinance, consider appropriate provisions for the future LDC, and to allow the County to adopt any needed amendments to the Durham Code of Ordinances to address utility extension for these high-impact uses.
Given the potential long-term implications of these uses, staff recommend a temporary moratorium to allow time to evaluate potential impacts and develop appropriate zoning standards and mitigation measures. During this period, Planning staff will also review regulatory approaches used by other jurisdictions in North Carolina and across the United States.
Staff recommend that the Board of County Commissioners consider adopting a temporary nine-month moratorium on hyperscale data centers, including, but not limited to, data centers, data processing facilities, and cryptocurrency mining operations. The proposed nine-month timeline aligns with the City of Durham’s existing moratorium, allowing both jurisdictions to evaluate and develop regulatory approaches on a coordinated schedule.
The moratorium would:
• Remain in effect until May 2027;
• Allow staff to evaluate existing regulations and identify potential amendments;
• Provide an opportunity to assess infrastructure and community impacts associated with hyperscale data centers, data processing facilities, cryptocurrency mining operations, and other uses associated with data processing facilities; and
• Allow the governing body to consider whether additional standards, regulations, or review procedures are necessary.
EXEMPTIONS
There has been concern that an absolute ban on applications would unduly stifle the growth of companies seeking construction or expansion of smaller data centers, especially in and around the Research Triangle Park and the Treyburn Industrial Park. In response, staff is proposing limiting the moratorium to projects that exceed 100,000 square feet. The goal would be to allow smaller data centers to move forward with the development process, thus reducing the negative impact on the companies that are proposing to construct or rehab “enterprise” or “edge” centers during the moratorium.
Initially, staff considered exempting data centers based on the amount of MegaWatts used in a center. However, as the County does not have the statutory authority to regulate electricity usage and does not have access to such information, it would be very difficult for the County to apply and enforce any such exemption. Staff propose, instead, to use a center’s square footage as a way to determine whether centers may or may not be allowable during the moratorium. A maximum square footage of 100,000 would significantly reduce the odds of a hyperscale data center being proposed for development for the duration of the nine-month moratorium, while allowing for the potential projects, those that will have minimal impact on public infrastructure, to move forward.
Alignment with Strategic Plan: Empowered Community and Sustainable Infrastructure Environment
Resource Persons: Claudia Hager, County Manager; Larissa Williamson, County Attorney; Maurice Jones, Deputy County Manager; Sara Young, Director of Planning and Development.
County Manager’s Recommendation: The County Manager recommends that the Board hold a public hearing on the Data Center Moratorium and if prepared, vote to approve the recommended ordinance change.
Signature
County Manager: ____________________________