Foley approves 6-month moratorium on data centers, crypto

Foley approves 6-month moratorium on data centers, crypto-mining facilities

(CITY OF FOLEY) Foley City Council approves 6-month moratorium on data centers, crypto-mining facilities

FOLEY, Ala. (NBC 15) —Foley has put a temporary halt on new data center-related proposals while city leaders study how such facilities could affect the community.

The Foley City Council voted Tuesday, Sept. 8, to approve the final reading of an ordinance establishing a six-month moratorium. The ordinance is now in effect and restricts the acceptance, processing, approval and consideration of applications for data centers, Bitcoin and cryptocurrency mining facilities, server farms and similar technically oriented uses, facilities and operations.

Mayor Ralph Hellmich said no data centers have been proposed for the Foley area, but the moratorium is intended to give the city time to prepare ordinances and guidelines in case an application is submitted in the future.

“This way we can review all of our regulations, environmental, zoning, and make sure everything coordinates so that if, in the future, any of one of these types of industries come to us, we’re prepared,” Hellmich said. “We want to have the answers if they show up, so that all the right questions are asked.”

“We want to make sure that our city has all the questions answered before anybody shows up,” he added.

Hellmich said Foley’s city-owned electrical provider, Riviera Utilities, has requirements that would affect any data centers built in the area.

“We’re in a unique position. Foley owns Riviera Utilities, which already has protections built in. The big three things are water use, noise and electrical use that punishes current customers. Riviera had already put into place a policy that will not allow a data center to put the burden onto existing customers. If a data center comes, they have to bring the power with them,” Hellmich said.

The mayor said he did not believe South Baldwin County would be considered as a data center site, but said city officials are preparing for any contingency.

City officials said the six-month moratorium will give staff time to update regulations, including zoning ordinances and technical design manuals used to regulate traditional development. Updated regulations would focus on potential impacts tied to data centers, including water re

During the moratorium, staff will continue studying work done in Alabama cities and other parts of the country, looking at both positive and negative impacts of these uses in those communities. The city also plans to work with Riviera Utilities to discuss water usage, power usage and anticipated megawatt thresholds.

City officials said Foley does not wish to restrict the legal use of private property, but wants updated municipal regulations in place before considering any proposals for facilities such as data centers to help protect the community and environment from potential impacts.

Foley, described as one of the fastest growing communities in the United States, has worked to meet the needs of an increasing population while preserving qualities that attract new and established residents. City leaders said the moratorium is intended to provide time to study the effects of data centers and similar operations and determine how municipal regulations should be modified if such facilities are proposed.

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