Asheville City Council has approved a one-year moratorium on new data center development, giving city officials time to evaluate how the rapidly growing industry could affect the community before considering additional projects.

The temporary pause is designed to allow planners to study issues such as water consumption, electricity demand, land use, traffic, noise, and zoning standards. With large data centers expanding across the Southeast to support cloud computing and artificial intelligence, Asheville leaders say they want to ensure future development aligns with the city's long-term planning goals.

City officials emphasized that the moratorium is not a permanent ban. Instead, it provides time to develop policies that balance economic opportunity with the protection of neighborhoods, natural resources, and public infrastructure. During the study period, staff will examine how other communities have addressed similar projects and recommend standards tailored to Asheville's needs.

Supporters of the moratorium say data centers can create significant demands on local utilities and infrastructure despite employing relatively small workforces once construction is complete. They argue that careful planning now can help avoid unintended impacts on residents while providing greater certainty for future investment.

The action comes as Asheville continues rebuilding after Hurricane Helene while planning for long-term economic growth. Decisions about future development have taken on added importance as the city works to strengthen its infrastructure and prepare for changing technology and business needs.

City leaders also approved moving forward with funding for single-family home repair efforts related to Hurricane Helene, reflecting the council's continued focus on recovery alongside planning for the region's future.

Over the coming months, planners will gather information, review best practices, and seek public input before presenting recommendations to City Council. Once that work is complete, council members will determine whether to modify, extend, or lift the moratorium as Asheville charts its next phase of growth.