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Committee backs six-month moratorium on data centers while zoning and state bills are reviewed
Summary
The Laws & Ordinance committee directed staff to pursue a six-month moratorium on data centers while the zoning code update and pending state legislation are considered; the law director cautioned that home-rule limits and state preemption bills could affect local authority.
New Franklin — Members of the Laws & Ordinance committee on April 15 directed staff to advance a six-month moratorium on data center development while the city’s zoning update and related state activity are reviewed.
Committee members debated the merits. Some said a temporary pause would give staff time to finish zoning language and await a required electrical load study; others said a moratorium could discourage desirable investment and that existing conditional-use and zoning hearing processes provide checks. A member who spoke against the moratorium stated the city should embrace artificial intelligence and carefully consider conditional-use protections rather than adopt a broad ban. Another member said a six-month pause would allow the city to ‘put the brakes on’ while the zoning code is finalized.
The law director told the committee that home-rule authority is complex and that whether the city could act depends on who the state law regulates; they warned that certain state preemption bills limit local authority. Staff also briefed members on state legislation affecting short-term rentals (Senate Bill 104, House Bill 109, and HB 161) and said the city’s zoning application and code revisions would continue regardless of statewide outcomes.
Outcome: Committee members agreed to put a six-month moratorium forward for council action and to seek greater clarity on zoning timelines and state developments before finalizing language.
