Court allows Chatham County data center to proceed despite one-year moratorium

In February, Chatham County commissioners adopted a one-year moratorium on new data centers. That moratorium stays in place until Feb. 11, 2027, or until new zoning regulations are adopted — whichever happens first.

Developer challenge and project status

Eco TIP West planned a 750-megawatt data center at Triangle Innovation Point West near Moncure. The company filed a lawsuit in April arguing its project was already underway when the moratorium was approved and therefore should be exempt.

Eco TIP's court filing says the developer spent $11 million on the project and had been working with the county. The developer also pointed to existing zoning that permitted a data center on the site.

Superior Court Judge John Morris granted the developer's motion for summary judgment. In his written finding he concluded, "there is no genuine issue as to any material fact and that Plaintiff is entitled to a judgment in its favor as a matter of law."

County moratoria trend in North Carolina

At least 30 local governments in North Carolina have adopted moratoria on new data centers in recent months. Local officials have cited a range of planning concerns when pausing approvals. This Chatham County judgment provides one legal outcome when a developer claims its project predates a moratorium.

The ruling applies directly to Eco TIP West's project. The decision does not automatically overturn other moratoria or determine how courts will rule on similar disputes elsewhere. It's unclear how this case will affect pending or future moratoriums across the state.

Practical takeaways for stakeholders

• Local governments: When adopting moratoria, be prepared to specify the intended scope and to document the legal basis for emergency or interim restrictions.
• Communities and planners: Expect additional litigation as jurisdictions navigate zoning, infrastructure capacity, and local policy responses to large data center proposals.

Watch for any county appeal or further rulings that clarify whether the judgment creates legal precedent affecting other moratoria. Also watch how Chatham County calculates and pays damages ordered by the court.