On August 11, 2026, the Waxhaw Board of Commissioners adopted a temporary 12-month moratorium on new data center development in Town. The following frequently asked questions are being provided to help explain what that means and what happens next.

Current Status as of August 2026: Study period in progress. No ordinance has been adopted yet. This FAQ will be updated when the Board takes further action.

 What action did the Board of Commissioners take on Data Centers?

On August 11, 2026, the Board of Commissioners unanimously adopted Ordinance ORD2026014 (PDF), imposing a 12-month moratorium on new data center development applications in the Town of Waxhaw. The moratorium was adopted under North Carolina General Statute § 160D-107, which allows local governments to pause development approvals while they study an issue and prepare appropriate regulations.

How long will the moratorium last?

Up to 12 months, expiring no later than August 10, 2027. It will end sooner if the Board adopts new data center regulations before that date, or if the Board votes to terminate it early.

Does this mean a data center is planning to locate in Waxhaw?

No. As of this posting, no data center has applied for approval or otherwise approached the Town. The moratorium is a preemptive, precautionary step, not a response to a specific project.

What does the moratorium actually do?

While it is in effect, the Town will not accept, process, or approve zoning, site plan, building, or other development permit applications for new data center development. It also prohibits rezoning any property for the purpose of establishing a data center use.

Can a data center still be approved while the moratorium is in effect?

No. For the length of the moratorium, the Town will not accept, process, or approve any application for a new data center, and it will not approve rezoning any property for that purpose. Nothing can move forward until the study period ends and, if the Board chooses, new standards are adopted.

Why did the Board adopt a moratorium?

The Town's current Land Development Code does not specifically define or regulate data centers, cryptocurrency mining, or related data processing uses. As a result, the code does not account for impacts these facilities can have on Town infrastructure and neighborhoods, including electric utility capacity, water consumption, noise, heat generation, lighting, and traffic. The moratorium gives the Town time to study these impacts and develop standards before any application could be filed.

What counts as a "data center" under the moratorium?

The ordinance defines it broadly to include data centers, cryptocurrency mining, data storage and processing, artificial intelligence computing, and related telecommunications equipment and infrastructure, generally consistent with NAICS Code 518210 (Data Processing, Hosting, and Related Services) or functionally equivalent uses.

Are any facilities excluded from the moratorium?

Yes. It does not apply to equipment that is clearly incidental and subordinate to an already-permitted use on the same site, such as a hospital, business, or government building's own internal servers, as long as data processing services are not being offered to off-site users as a primary service. It also does not apply to applications that were already complete and vested before August 11, 2026, or to projects otherwise exempt under state law.

Will this affect utility rates or taxes?

Not as a result of the moratorium itself. Part of why the Board acted is that large data centers can place significant new demands on local water and electric systems, which is one of the impacts Town staff will study before any permanent rules are proposed. The goal of that study is to make sure future development pays for its own infrastructure needs rather than shifting costs to existing residents and businesses.

Doesn't this cut off potential investment or tax revenue for the Town?

That is one of the trade-offs the Board is weighing. Data center development can bring investment and added tax base, but it can also bring significant infrastructure and neighborhood impacts if it is not properly regulated. The purpose of the study period is to develop rules that let the Board evaluate any future proposal on its actual merits, rather than under a code that was not written with this use in mind.

What is Waxhaw's current zoning rule for data centers?

Today, the closest defined use is "server farm," which is permitted by right in the Employment Center district with structures allowed up to 80 feet tall, separated from residential property by the district's standard vegetative buffer. This is the outdated framework the study period is intended to replace with data-center-specific standards.

What is the Town doing during the study period?

Town staff will research the impacts of data center development, review how other North Carolina jurisdictions have regulated the use, and monitor related legislation moving through the state General Assembly. Staff will then draft proposed updates to the Land Development Code, which will go through Planning Board review and a public hearing before the Board of Commissioners considers adoption.

Will the public have a chance to weigh in?

Yes. Any proposed changes to the Land Development Code must go through a public hearing before the Board of Commissioners can adopt them, and staff plans to engage the public and industry stakeholders during the study period itself. Details on specific opportunities to comment will be shared as the process moves forward.

Is Waxhaw the only town doing this?

No. As of the Town's July 2026 research, 25 of 30 surveyed North Carolina jurisdictions have adopted or proposed a moratorium on data center development, and 6 have adopted dedicated ordinances. Waxhaw's moratorium follows the same approach many peer communities have taken.

What happens next?

When the Board is ready to consider a permanent ordinance with defined standards, the Town will update this FAQ, issue a full news release, and share more detailed information on the proposed rules, along with opportunities for public input at that time.

Where can I read the full ordinance?

The complete text of Ordinance ORD2026014 (PDF) is available on our website Waxhaw.com.

Who can I contact if I have questions?

Contact the Town of Waxhaw’s Development Services Department by calling 704-843-2195.