North Carolina Lawmaker Challenged Data Center Moratoria
State leaders moved to curb local development restrictions after a legal ruling favored a major regional project.
Updated on Oct. 2, 2026 in Data Centers
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Should local governments be permitted to place construction moratoria on new data center projects?
State Representative Jake Johnson has criticized North Carolina local governments for implementing construction freezes on data centers. This follows a recent court ruling that ordered Chatham County to allow a development project to proceed and pay damages.
Why it matters
The tension between local zoning authority and state-level economic development has intensified as North Carolina seeks to balance growth with community concerns. Lawmakers are now considering whether to withhold tax incentives and power subsidies from municipalities that block data center construction.
Loudoun County, Virginia, hosts 233 data center sites, serving as the industry benchmark for concentration. North Carolina faces pressure to scale infrastructure to match such hubs while managing local land-use pushback.
The players
Jake Johnson
A Polk County Republican serving as co-chair of the North Carolina House Oversight committee.
Kirk Bradley
The leader of Lee-Moore Capital, a development firm involved in major industrial projects.
The details
Local governments have used moratoria—temporary prohibitions on construction or development—to address concerns regarding the environmental and utility impact of data centers. State Representative Jake Johnson argues that existing property rights regulations bar municipalities from altering land-use rules mid-development, a stance bolstered by a recent court victory for developer Kirk Bradley. In that case, a judge ruled that Chatham County could not block a project at the Triangle Innovation Point in Moncure and must pay damages to the developer.
Timeline
2022: Kirk Bradley began assembling property for the Triangle Innovation Point project.
2025: North Carolina prohibited de facto downzoning.
October 1, 2026: Rep. Jake Johnson discussed the issue during a webinar.
The Tech Race
This dispute tests the strength of the 2025 de facto downzoning prohibition in North Carolina. It highlights an emerging shift where state oversight seeks to override local land-use blocks to maintain competitive parity with infrastructure-heavy hubs like Loudoun County, Virginia.
Residents in areas targeted for data centers may see reduced local government control over industrial growth as state lawmakers weigh tax and utility subsidy restrictions. These changes could accelerate the timelines of large-scale projects like those at Triangle Innovation Point.
The takeaway
Legislators are signaling that municipal construction freezes will carry fiscal consequences for local governments. Watch for future state legislative sessions where lawmakers may formally codify the withdrawal of power rate subsidies for counties that impede data center development.
Further reading
For broader analysis on infrastructure expansion, explore our Data Centers section.
Source note: This article includes information reported by Business North Carolina.
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Should local governments be permitted to place construction moratoria on new data center projects?
