Holly Springs approves year-long pause on new data centers

Holly Springs put a one-year freeze on new data centers Monday night, siding with residents and council members who said the town needs time to weigh the effects on water, power, traffic and neighborhood life. The moratorium covers data centers, data processing facilities and cryptocurrency mining operations inside town limits and the extraterritorial jurisdiction, and no new applications will be accepted or processed during the pause.

The Holly Springs Town Council approved the measure on June 16, 2026, after a public hearing at Town Hall Council Chambers at 128 S. Main Street. Town officials said the pause is meant to give staff and elected leaders time to study possible Unified Development Ordinance amendments before any large-scale facilities move forward.

The town has framed the issue as more than a zoning question. Its stated review will look at water consumption, energy demand, traffic and noise levels near residential areas, concerns that have become central as Holly Springs has grown quickly and land-use decisions have carried bigger stakes for roads, utility infrastructure and the character of nearby neighborhoods.

The decision also places Holly Springs squarely inside a regional retreat from the data center rush. Apex approved a one-year moratorium in April 2026, and Wendell approved its own pause through Dec. 31, 2026. Taken together, the moves show Triangle towns are not just reacting to individual projects but reconsidering whether industrial-scale digital infrastructure fits in fast-growing suburban communities.

State law gives local governments room to do that. North Carolina General Statute 160D-107 allows temporary moratoria on development approvals, as long as the length of the pause is reasonable and tied to the conditions that prompted it. Holly Springs’ order is set for up to 12 months.

The broader debate has sharpened as researchers and lawmakers have warned that the facilities can be resource-intensive. A University of North Carolina Collaboratory summary said large data centers can consume up to 5 million gallons of water a day, and that roughly 80 percent of evaporative-cooling water is lost to the atmosphere as vapor. In Raleigh, Rep. Lindsey Prather has introduced House Bill 1063, which would require water-use reporting and make data centers pay the full cost of their water and infrastructure.

WRAL has reported that AI-driven data center growth is increasing power and water demand across North Carolina and could raise emissions and electricity costs for customers. For Holly Springs, the moratorium is a high-stakes pause: a year to decide whether the town wants the benefits of a new growth engine, or whether the risks to water, utilities and nearby homes are too high to move ahead now.