Madison, Wis. Joins Growing List of Cities Pausing Data Center Development
The city has enacted a one-year moratorium on new large data center construction.
WASHINGTON, Jan. 29, 2026 – The Madison Common Council has approved a one-year moratorium on new large-scale data center development, giving city officials time to review zoning rules and infrastructure demands tied to the facilities’ expansion.
The temporary pause applies to new data centers and telecommunications centers larger than 10,000 square feet. City officials said the moratorium is intended to allow staff to evaluate potential impacts on electricity and water use, land use planning, and community benefits before approving additional projects. Existing facilities and smaller data centers will not be affected.
Planning Division Director Meagan Tuttle said the moratorium would serve as a planning tool to help the city develop clearer standards for future data center projects, particularly as demand for computing power grows alongside artificial intelligence and cloud services.
Public comments reflected a range of concerns about the pause.
Some residents and technical experts raised concerns about the strain large data centers could place on the electric grid and the potential for higher utility costs. Others argued that the moratorium is necessary to better understand long-term environmental and infrastructure impacts before allowing additional development.
Business groups, including the Greater Madison Chamber of Commerce, cautioned that a yearlong pause could discourage investment and slow the city’s technology sector. City leaders responded that the measure is not intended to block data centers permanently, but to ensure regulations are in place before approving future projects.
Madison’s action follows similar moves by other local governments nationwide, as jurisdictions weigh the economic benefits of data centers against concerns over energy demand, infrastructure capacity, and local oversight.
Coweta County, Ga., enacted a 180-day moratorium in May, following a 90-day pause approved in March by neighboring Douglas County, as the state sees rapid data center growth driven by tax incentives. Clarke County, Iowa, adopted an open-ended moratorium in June that will remain in effect until permanent rules are adopted or the measure is rescinded.
Similar actions have been taken elsewhere, including a 180-day moratorium approved by Springfield Township, Mich., and a one-year ban adopted by St. Charles, Mo., in August.
The city of Madison plans to engage utilities, environmental experts, developers, and policymakers during the moratorium as it considers permanent rules.
Member discussion