MORATORIUM ORDINANCE
Data centers are spreading rapidly across the country, bringing major demands for electricity, water, land, and infrastructure and raising important questions about who bears the costs, whose voice is heard, and who benefits from this unprecedented development. Yet the structure of the data center and artificial intelligence industry gives the world’s largest technology companies and developers significant leverage with states and localities, including through private deals, corrupt practices, and non-disclosure agreements that limit public access to information about proposed projects, public incentives, and significant community impacts.
States and localities can rebalance that power. Given the speed of the data center boom, communities and policymakers need sufficient time and information to understand potential impacts before committing public resources or approving new development. In many places, that may mean pausing new projects through a moratorium while communities establish standards, prohibiting development that is incompatible with local priorities or resource constraints, or repealing subsidies adopted without meaningful public input. These approaches give communities space to determine whether and under what conditions data center development is in the public interest.
Communities are starting from very different places. Many want to prohibit data centers altogether. Some already host data centers and want to establish new protections. Others may decide through a transparent, community-led process that projects can move forward if they meet strong public-interest standards. In those communities, policymakers can use other tools in this toolkit to make development contingent on meaningful, enforceable benefits and protections. The goal is to ensure that data center development happens on terms set by communities and in the public interest, rather than treating unregulated development as inevitable or allowing technology companies and private interests to set the terms.
Moratoriums, prohibitions, and subsidy repeals are among the strongest tools available to halt unregulated development, rebalance power, and give communities authority over their own futures.
MORATORIUM (STATE)
SECTION 2. For the purposes of this act, the below terms shall be defined as follows:
“Data center” or “facility” means any facility, or group of facilities under common ownership or operational control, with the primary use to house computer servers, data storage systems, networking equipment, or associated infrastructure for data processing, web hosting, streaming services, or computational tasks [OPTIONAL: “that uses a nameplate capacity of [# (recommend 50)] Megawatts or greater of electricity per day”].
SECTION 3. No state agency or local authority shall issue any permit, license, variance, certification or approval for the construction, development, or expansion of any data center facility for a period of [TIME PERIOD] following the effective date of this Act.
SECTION 4. During the duration of this moratorium, the [GOVERNING BODY] shall commission an independent impact study that addresses ratepayer and grid impacts, water availability, noise, air quality, public health, racial and socioeconomic equity, tax and other incentives, job creation, and general environmental concerns. This study shall include a robust public engagement process including the formation of a working group composed of local residents, elected officials and staff, and experts on the impacts listed above with special emphasis on historically marginalized communities. This working group is authorized to create additional policy recommendations beyond the scope of this ordinance that may be considered by the [GOVERNING BODY].
SECTION 5. The prohibition under Section 3 of this Act shall not apply to:
[SELECT OPTIONS OR REMOVE SECTION IF NONE]
Facilities that have already been approved or commenced physical construction prior to the effective date of this Act.
Auxiliary Data Rooms and Server Rooms that are subordinate to and accessory to the organization's primary use of the building or site not exceeding [# or 20]% of the total building square footage on the project site and an IT load capacity of [# or 9] megawatts.
The routine maintenance, repair, or minor modification of existing permitted data center facilities that does not increase total peak electric demand by more than [# or 10]%.
SECTION 6. The [GOVERNING BODY] reserves the right to extend or modify this moratorium for such additional period(s) and upon such terms and conditions as it deems necessary to protect the public health, safety, and environment.
SECTION 7. This Act shall take effect immediately upon signature by the Governor.
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Subsidies definition: Data center subsidies include but are not limited to: sales and use tax exemptions, corporate income taxes credits, property tax abatements, exemptions, rebates, personal income tax divisions, utility tax exemptions, expedited land use or environmental permits, or other financial or non-financial benefits a data center may receive at the state or local level. For more information on how to address state and local subsidies, see Good Jobs First recommendations here.
If subsidy repeal is not currently feasible in your state or municipality, you can also refer to Section XX for language to require an audit of the economic benefits of these subsidies, which can help build the case for a full repeal.
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For the purpose of repealing State subsidies during the [TIME PERIOD] of the moratorium for data centers. The following State subsidies are repealed for the period of the moratorium: [INSERT LIST OF STATE SUBSIDIES, INCLUDING TAX OR OTHER FINANCIAL OR MONETARY BENEFITS, FOR DATA CENTERS ARE THE MAIN BENEFICIARY].
Additionally, for the period of the moratorium, data centers are disqualified from the following State subsidies [INSERT LIST OF STATE SUBSIDIES, INCLUDING TAX OR OTHER FINANCIAL OR MONETARY BENEFITS, FOR WHICH DATA CENTERS ARE ELIGIBLE].
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For the purpose of repealing State subsidies during the [TIME PERIOD] of the moratorium for data centers. The following State subsidies are repealed for the period of the moratorium: [INSERT LIST OF STATE SUBSIDIES, INCLUDING TAX OR OTHER FINANCIAL OR MONETARY BENEFITS, FOR DATA CENTERS ARE THE MAIN BENEFICIARY].
Additionally, for the period of the moratorium, data centers are disqualified from the following State subsidies [INSERT LIST OF STATE SUBSIDIES, INCLUDING TAX OR OTHER FINANCIAL OR MONETARY BENEFITS, FOR WHICH DATA CENTERS ARE ELIGIBLE].
AN ACT to amend the environmental conservation law, in relation to imposing a moratorium on data center permit issuance.
WHEREAS, It is the policy of the state of [STATE] to protect its natural resources by preventing water, land, and air pollution as it relates to the public health, social, and economic wellbeing of the people of the state.
WHEREAS, The proliferation of data centers has already resulted in $25 million in public health damages last year alone are expected to use 12 percent of all electricity generated in the United States by 2028, and the equivalent water of 18.5 million households.
WHEREAS, Even when data centers use renewable energy, they often capture new renewable generation development that would otherwise have allowed for the closure or reduced reliance on fossil fuel power.
WHEREAS, This development is inconsistent with [STATE]’s goals and therefore it has been determined by the Legislature that actions must be taken to slow down such development until further issues can be studied and resolved.
SECTION 1. This Act shall be known as and may be cited as the “[TITLE].”
MORATORIUM (LOCAL)
For the purpose of establishing a [TIME PERIOD] moratorium on the processing or approval of permit applications and site development plans for projects where data centers are the primary land use.
WHEREAS, the development of data centers has been a matter of considerable interest and concern from residents of [JURISDICTION] in regard to their impact on the environment, critical energy and water supplies, and general land use.
WHEREAS, the [GOVERNING BODY] has heard this feedback and recognizes that the broader impacts of data centers on the community must be fully understood before any further development of such projects can be considered.
WHEREAS, [EXISTING LAW] authorizes the [GOVERNING BODY] of [JURISDICTION] to adopt and amend changes to local zoning law to define and address data centers.
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SECTION 1. Under [ZONING CODE], "data center" is defined as [EXISTING DEFINITION].
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SECTION 1. [ZONING CODE] is amended to define “data center” as any facility, or group of facilities under common ownership or operational control, with the primary use to house computer servers, data storage systems, networking equipment, or associated infrastructure for data processing, web hosting, streaming services, or computational tasks [OPTIONAL: “that uses a nameplate capacity of [# (recommend 50)] Megawatts or greater of electricity per day”].
SECTION 2. A moratorium is hereby authorized on the acceptance, processing, review, and approval of any zoning permits, site development plan applications, and site development plan amendment applications that include a data center as a primary use or expand the gross-floor area of an existing data center beginning immediately on the date of adoption of this ordinance for a period of [TIME PERIOD].
SECTION 3. During the duration of this moratorium, the [GOVERNING BODY] shall commission an independent impact study that addresses water availability, noise, air quality, public health, racial and socioeconomic equity, tax and other incentives, job creation, and general environmental concerns. This study shall include a robust public engagement process including the formation of a working group composed of local residents, elected officials and staff, and experts on the impacts listed above with special emphasis on historically marginalized communities. This working group is authorized to create additional policy recommendations beyond the scope of this ordinance that may be considered by the [GOVERNING BODY].
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SECTION [#]. Auxiliary Data Rooms and Server Rooms are allowed as an accessory use of a single organization, that is subordinate to and accessory to the organization's primary use of the building or site. Associated Data Rooms and Server Rooms shall not exceed [# or 20]% of the total building square footage on the project site and shall have a maximum design IT load capacity of [# or 9] megawatts.
SECTION [#]. Pending applications that have not been approved upon the date of adoption of this ordinance [shall not/shall still] be considered [IF “SHALL NOT” ADD: until after the moratorium has expired and may need to be resubmitted based on findings of impact studies and permanent zoning changes.]
SECTION [#]. The [GOVERNING BODY] reserves the right to extend or modify this moratorium for such additional period(s) and upon such terms and conditions as it deems necessary to protect the public health, safety, and environment,
SECTION [#]. This moratorium shall expire the later of:
[TIME PERIOD] from the date of adoption of this ordinance, or
The date of adoption of any requirements outlined in subsequent sections of this ordinance.
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Subsidies definition: Data center subsidies include but are not limited to: sales and use tax exemptions, corporate income taxes credits, property tax abatements, exemptions, rebates, personal income tax divisions, utility tax exemptions, expedited land use or environmental permits, or other financial or non-financial benefits a data center may receive at the state or local level. For more information on how to address state and local subsidies, see Good Jobs First recommendations here.
If subsidy repeal is not currently feasible in your state or municipality, you can also refer to Section XX for language to require an audit of the economic benefits of these subsidies, which can help build the case for a full repeal.
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For the purpose of repealing [INSERT SPECIFIC LOCAL PROPERTY TAX OR OTHER BENEFICIAL FINANCIAL BENEFIT] during the [TIME PERIOD] of the moratorium for data centers. The following local property tax and land use subsidies are repealed (ineligible for data centers) for the period of the moratorium: [INSERT LIST OF LOCAL SUBSIDIES, INCLUDING TAX OR OTHER FINANCIAL OR MONETARY BENEFITS, FOR DATA CENTERS ARE ELIGIBLE].
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For the purpose of repealing (ineligibility) [INSERT SPECIFIC LOCAL PROPERTY TAX OR OTHER BENEFICIAL FINANCIAL BENEFIT] for current and new data centers. The following local taxes are repealed (ineligible): [INSERT LIST OF STATE SUBSIDIES, INCLUDING TAX OR OTHER FINANCIAL OR MONETARY BENEFITS, FOR DATA CENTERS ARE ELIGIBLE].
Strike the following: [INSERT LIST OF LOCAL SUBSIDIES, INCLUDING TAX OR OTHER FINANCIAL OR MONETARY BENEFITS, THAT CURRENTLY RECEIVE OR ARE ELIGIBLE FOR DATA CENTERS WITHIN STATE LAW].
PROHIBITION (LOCAL)
For the purpose of establishing a prohibition on the processing or approval of permit applications and site development plans for projects where data centers are the primary land use.
WHEREAS, [EXISTING LAW] authorizes the [GOVERNING BODY] of [JURISDICTION] to enact and enforce ordinances regulating conditions that may be public nuisances or health hazards, or that promote social, economic, or aesthetic considerations.
WHEREAS, [EXISTING LAW] authorizes the [GOVERNING BODY] of [JURISDICTION] to declare what constitutes a nuisance by ordinance.
WHEREAS, the development of data centers has been a matter of considerable concern from residents of [JURISDICTION] in regard to their impact on the environment, critical energy and water supplies, and general land use.
WHEREAS, the [GOVERNING BODY] has heard this feedback and has determined that data centers should be deemed a nuisance and therefore it is necessary to adopt a uniform, citywide prohibition so that data centers are not an allowed use under any General Plan land use designation or zoning regulations.
SECTION [#]. A prohibition is hereby authorized on the acceptance, processing, review, and approval of any zoning permits, site development plan applications, incentive applications and agreements, and site development plan amendment applications that include a data center as a primary use or expand the gross-floor area of an existing data center beginning immediately on the date of adoption of this ordinance.
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SECTION [#]. Under [ZONING CODE], “data center” is defined as [EXISTING DEFINITION]
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SECTION [#]. [ZONING CODE] is amended to define “data center” as any facility, or group of facilities under common ownership or operational control, with the primary use to house computer servers, data storage systems, networking equipment, or associated infrastructure for data processing, web hosting, streaming services, or computational tasks [OPTIONAL: “that uses a nameplate capacity of [# (recommend 50)] Megawatts or greater of electricity per day”].
SECTION [#]. [ZONING CODE] is amended to define such data centers as a public nuisance.
SECTION [#]. [ZONING CODE] is amended by adding a new subsection to read as follows:
“Limitation on Land Use; Prohibition.
Except as provided in this title, it is unlawful to construct, reconstruct, or structurally alter any building or use any real property for any purpose other than what is specifically permitted in the zone in which the building or land is located. Using any building or real property for a purpose prohibited by federal law, state law, or this Code is a misdemeanor.
Unless preempted by federal or state law, it is unlawful for any person to construct, operate, reconstruct, or use real property for an airport, helipad or heliport in any zone. Using any building or real property in violation of this subsection is a misdemeanor.
Unless preempted by federal or state law, it is unlawful for any person to construct, operate, reconstruct, or use real property for a data center in any zone. Using any building or real property in violation of this subsection is a misdemeanor.”
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Section X. A new section is added to read as follows:
“Auxiliary Uses. Associated Data Rooms and Server Rooms are allowed as an accessory use of a single organization, that is subordinate to and accessory to the organization's primary use of the building or site. Associated Data Rooms and Server Rooms shall not exceed 20% of the total building square footage on the project site and shall have a maximum design IT load capacity of 9 megawatts.”
SECTION [#]. Pending applications that have not been approved upon the date of adoption of this ordinance [shall not/shall still] be considered.
Fore more interventions, see:
