New Haven weighs 12-month moratorium on data center development

New Haven officials are considering a one-year moratorium on new data center development to give the city time to study the fast-growing industry and craft zoning regulations governing where and how the facilities can be built.

The proposed ordinance is scheduled to be reviewed by the City Plan Commission at its July 15 meeting. If ultimately adopted by the Board of Alders, it would prohibit city departments from accepting or approving applications for new data centers or conversions of existing properties into data centers for 12 months.

The proposal comes as Connecticut policymakers and local governments take a more cautious approach to data center development amid concerns about the industry’s heavy electricity demand, water use and infrastructure needs. Earlier this year,

Gov. Ned Lamont said the state should “slow down” new data center projects unless they include additional electric generation, and lawmakers have debated changes to state incentives for the industry.

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Connecticut, however, has not emerged as a major data center market, largely because its high electricity costs make it less competitive than states such as Virginia and Texas.

The New Haven ordinance, introduced by Alderman Richard Furlow, says the city currently lacks zoning regulations specific to data centers, which can require significant electrical infrastructure, cooling systems, water usage, backup power generation and telecommunications equipment. The temporary pause would allow New Haven to evaluate the industry’s land-use, environmental, infrastructure and public safety impacts before permitting projects, Furlow wrote in a letter to the city’s Board of Alders.

During the moratorium, the city’s Department of Economic Development would convene a working group to study the issue and recommend zoning standards. The group would have six months to submit its findings.

The proposal notes that other Connecticut municipalities, including Groton, Morris and West Haven, have studied or adopted temporary moratoriums or other land-use regulations related to data centers as interest in the sector has grown.