Cleveland pumps the brakes on data centers

Cleveland pumps the brakes on data centers

Cleveland may soon be the next Ohio city to pass a moratorium on new data centers.

Why it matters: The city is grappling with the impacts of the facilities and ironing out its zoning code to regulate their size and location.

State of play: City Council's utilities committee voted last week to impose a three-month moratorium on new data centers.

  • The pause is scaled back from a one-year moratorium initially proposed by Councilman Charles Slife.
  • If the full council votes in favor, it will occur in tandem with a working group established by the city.

    • Between the lines: The moratorium will withhold city building permits on standalone data centers, not in-house facilities or "server rooms" like those maintained by the Cleveland Clinic, committee chair Brian Kazy said.

    What they're saying: Kazy told a packed council committee room that Cleveland is not saying "absolutely no" or "absolutely yes" to data centers.

  • "Today is the beginning of gathering that information. Data centers are here. What we need to figure out is do we have the infrastructure to support them?"

    • The big picture: Cities across the state and country have enacted moratoriums as communities gather public feedback and do the math on things like electricity costs and water consumption.

  • Cuyahoga County this month released a Data Center Development Guide to help local municipalities evaluate proposals, negotiate stronger terms and avoid being taken advantage of by developers.

    • The other side: The Greater Cleveland Partnership, aligned with the U.S. Chamber of Commerce, has opposed bans and moratoriums.

  • It has championed a "smart growth approach," arguing that data centers are essential infrastructure for the region's "AI-driven economic transformation."

    • What's next: The full council could vote on the moratorium as early as its July 15 meeting.

  • The working group is scheduled to meet in September.