The City of Foley is taking a proactive approach to the growing data center trend, introducing an ordinance that would impose a temporary six-month moratorium on accepting or processing applications for data centers, cryptocurrency mining facilities and similar high-demand computing operations within city limits.
The proposed ordinance, which received its first reading during the city council’s regular meeting on Monday, August 17, would pause all approvals for facilities “primarily used for computing, data processing, data storage, cryptocurrency generation or similar technology” that are characterized by high electrical demand and high water consumption.
Mayor Cites Three Key Concerns
Foley Mayor Ralph Hellmich said that while the city already has robust zoning and environmental protections in place, the moratorium is intended to ensure that existing regulations work together effectively. He identified three primary areas of concern: water consumption, noise and power usage.
“We’re trying to be proactive to make sure that our area is prepared if one ever approaches us,” Hellmich said. He confirmed that no developer or company has yet approached the city about building a data center within Foley’s limits.
Utility Providers Already Have Safeguards
Hellmich noted that the region’s utility landscape adds another layer of protection. While a few Baldwin County cities operate their own utility departments, most of the area is served by EMC, Alabama Power or Riviera, the latter of which is owned by the City of Foley.
“They already have a policy in place to protect current customers so that they don’t have to absorb any costs if a data center comes to Baldwin County,” Hellmich said. “The basic bottom line from their standpoint is if you want to be a data center, you got to bring the power with you and it has to be provided to cover whatever you need. Totally separate of what our system is, and that’s pretty common throughout the industry now as data centers move around the United States.”
What Happens Next
If approved by the city council, the moratorium would last six months while the city conducts a comprehensive review of its municipal code. Hellmich expressed confidence that the review could be completed within that timeframe but acknowledged the possibility of an extension if significant gaps are discovered.
“We’re pretty well in good shape already, but we just wanted to look at a couple of issues,” Hellmich said. “I think we should be able to accomplish any changes we need in those six months, but in the off chance something is discovered lacking that we’re not ready to properly have the right ordinances written up, then we could always extend it.”
The proposal will go through the required advertising period, with a second reading and potential vote scheduled for September. The moratorium comes as communities across Alabama and the broader Southeast grapple with how to manage the rapid expansion of data center development, balancing potential economic benefits against concerns about infrastructure strain and environmental impact.