RALEIGH, N.C. (WTVD) -- The Raleigh City Council voted 7-1 on Tuesday to approve a six-month moratorium on new data center development, a move city leaders say will provide time to study potential effects and develop regulations for the rapidly growing industry.
The temporary pause applies to data centers with footprints exceeding 10,000 square feet. City officials said Raleigh's current regulations do not include standards specifically tailored to large-scale data centers.
The decision followed public debate both outside and inside council chambers, where community advocates argued the moratorium does not provide enough time to fully evaluate potential effects on utilities, communities, and the environment.
"There's a lot that the city does not know. Can it get all this information in six months? That becomes a really big question," said Rania Masri of the North Carolina Environmental Justice Network.
During the council meeting, advocates continued to express concerns about the scope and duration of the pause.
"This moratorium doesn't have a conditionality about it. It's simply time. So in six months, whether or not the city can do what it says it's going to do, the moratorium ends," Masri said.
Supporters of a longer pause said more time is needed to address unanswered questions about the effect of data centers on Raleigh communities.
"What is the harm in giving Raleigh more time? We have a city, a new half a million people, and there's still a massive knowledge gap about what the center for in our communities. And somehow, six months is enough. We're asking for 32 months," said Raleigh resident Zainab Baloch.
The moratorium is intended to give city staff time to study the effects of data center development and determine whether additional regulations are needed.
Residents also voiced concerns about whether six months would allow for meaningful public engagement and long-term planning.
"Six months is not enough time to make decisions that impact not only the major decisions, but also their lifetimes and future generations. The people of our city, especially those in southeast Raleigh, deserve to have a policy and a vision of all of the nations around the data centers. And this period will not allow that to happen," said Raleigh resident Anusha Yadav.
Councilwoman Christina Jones, the lone dissenting vote, said she had concerns about the structure of the moratorium and the challenges it could present.
"When you were watching different municipalities extend their moratoriums having longer ones. It's something that we are in the defensive mode to begin with, and so for me not having those laid out at this moment or voting on the moratorium is where I'm struggling to get there," Jones said.
Duke Energy said data centers account for less than 1% of total peak electricity demand, but that figure is projected to rise to 13% of sales by 2030.
The utility said it has been involved in discussions with Raleigh leaders about managing future growth. Lee Freedman, a Duke Energy spokesperson, said the company is focused on balancing expansion with reliability for customers.
"That means protecting reliability and making sure customers benefit and not subsidize growth -- so we're working with city staff to educate them, educate council members, and if this moratorium does pass, we will continue working with them," Freedman said.
Freedman also said projects under development are expected to provide financial benefits in the future.
"We're talking about billions of dollars in bill relief beginning in about 2029 when the new data centers start going online in North Carolina," he said.
Dustin Winkler, an AI enablement engineer and owner of the consulting company AWACS.AI, said data centers are essential to his work helping enterprise teams integrate AI technology into their operations and build applications.
"I don't know where I pull from, just like no one else does," Winkler said of the network of data centers that support AI services.
Despite relying on those facilities professionally, Winkler said he supports a temporary pause to assess potential effects.
"It is something that can be hard to reconcile," he said. "I think it's good to take a pause and make sure that we don't limit ourselves and to what kind of a technology expansion that we want. But we also are careful about our area. Make sure that it's not overtaxed."
The City said it is aware of eight data centers within Raleigh city limits, most of which are smaller-scale facilities.
City officials said Raleigh does not have a hyperscale data center within its jurisdiction. There are eight hyperscale data centers in North Carolina, with others under construction.
Amazon is building a $10 billion data center and AI campus in Richmond County.
Raleigh Mayor Janet Cowell said city leaders are seeking a balanced approach that encourages innovation while addressing community concerns.
"We want to have a very rational, careful approach that protects individuals who live in Raleigh and still be known as a tech-right, innovative city," she said.
The moratorium takes effect immediately and is scheduled to continue through April. City leaders said they plan to provide nearly a dozen opportunities for public comment as they work toward developing a city ordinance. Advocates, however, said they are seeking a broader conversation about data center development in Raleigh.