Why the City of Statesville Is Considering a Proposed Data Center Moratorium

Last Updated 7/24/2026Posted in Latest City News, Homepage, Data Center

A Message from City Manager, Ron Smith

One of the City's most important responsibilities is planning for the future. As Statesville grows and new industries emerge, it is important that our planning and development regulations evolve as well.

On Monday, August 10, 2026, the Statesville City Council will hold a public hearing to receive community input before considering a proposed 150-day moratorium on applications for new data centers.

You may have heard the term moratorium used in recent discussions. Simply put, a moratorium is a temporary pause. In this case, the proposed moratorium would give the City time to review our development regulations and determine whether updates are needed before considering additional data center applications.

As conversations about data centers have increased in our community, we have heard questions and concerns from residents about how these facilities should be reviewed and regulated. The proposed moratorium would give the City the opportunity to carefully evaluate our existing regulations, hear from the community, and consider whether updates are needed before accepting additional applications.

Data centers have become increasingly common as technology continues to evolve. While Statesville's Unified Development Code (UDC) addresses many types of development, it was not written with today's large-scale data centers in mind. Just as cities periodically update their zoning and development regulations to address new industries and changing technologies, it is important that our regulations keep pace with the evolving nature of data centers.

If approved, the proposed moratorium would give City staff the opportunity to review the UDC and develop recommendations for how future data centers will be regulated. This review will include:

  • Defining data centers within the Unified Development Code.
  • Identifying the most appropriate zoning districts for future data centers.
  • Determining whether additional development standards are needed.
  • Evaluating how to balance infrastructure needs, economic development, and community impacts.

Any proposed changes would follow the City's normal public review process, including recommendations from the Planning Board and a public hearing before the City Council.

It is also important to note that the previously approved Compass Data Center on Stamey Farm Road is exempt from the proposed moratorium and would not be affected.

That project required annexation into the city limits and the establishment of a very specific conditional zoning district, including site-specific development standards. One of the primary reasons for the moratorium is to apply the information gained through that process to all data center requests moving forward.

The Statesville City Council will hold a public hearing on the proposed moratorium on Monday, August 10, 2026, at 6:00 p.m. in the Council Chambers at City Hall, 227 S. Center Street.

Whether you have questions, concerns, or ideas to share, I encourage you to participate in the discussion. Hearing directly from our residents is an important part of this process, and I hope you will take the opportunity to share your perspective with the City Council.

Thank you for taking the time to learn more about this proposal and for your continued interest in the future of Statesville.

Ron Smith,  City Manager

Read common questions about the proposed moratorium here



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