4 Reasons SACE Calls for 18-Month Moratorium on the Data Center Gold Rush

The Southern Alliance for Clean Energy is asking for an 18-month pause on new large data centers in Tennessee, North Carolina, South Carolina, Georgia, and Florida. The group says the region needs time to set rules for these projects before more get built, rather than dealing with the costs after the fact.

SACE points to several concerns that matter for homeowners in these states. Data centers use tens of millions of gallons of water a day and bring noise and air pollution, often approved before nearby residents even know a project is planned. The group also warns that utilities are passing buildout costs on to regular customers, whether or not the predicted power demand actually shows up. In parts of the region, that could mean electric bills rising by as much as 57 percent by 2030. SACE argues this locks communities into decades of new fossil fuel power plants to serve data centers, with the financial risk falling on ratepayers rather than the companies building them.

SACE's executive director, Dr. Stephen A. Smith, said a pause would let the region set rules on transparency, pollution, and cost before construction locks in outcomes that can't be undone. This is not a proposal for a permanent ban, but a temporary hold while state and local governments figure out how to handle the demands data centers place on power grids and water supplies. If you live in one of these five states, this is the kind of decision that could eventually show up on your utility bill, depending on how state regulators respond.