The Seattle City Council has unanimously approved an emergency moratorium on new large-scale data centers while city officials study the potential impacts of the rapidly growing industry on utility rates, infrastructure, water resources and public health.
The legislation, approved Tuesday, temporarily halts applications for new data centers exceeding 20 megavolt-amperes of power capacity while the city develops policies to govern future projects. The measure comes amid growing concerns about the energy demands associated with artificial intelligence and cloud computing facilities.
Councilmembers said the action was driven by community concerns about how large data centers could affect Seattle’s electrical grid, water supplies, utility costs and environmental goals.
“Large AI data centers are popping up across the country, driving up utility costs for residents and small businesses while creating air, water, and noise pollution,” said Councilmember Eddie Lin, who sponsored the legislation and chairs the Land Use Committee. “We’ve heard from tens of thousands of residents. Seattleites should not be subsidizing record profits of large corporations from the AI boom.”
Lin emphasized that the legislation is focused on large-scale facilities and would not affect smaller data centers that support essential services such as 911 operations, hospitals, universities and public agencies.
The council also adopted a companion resolution establishing a policy framework for evaluating future data center proposals. The resolution directs city departments and the Mayor’s Office to study the industry’s potential impacts on Seattle’s electrical grid, water consumption, utility rates, land use, jobs and public health.
Councilmember Debora Juarez, who sponsored the resolution, said the moratorium is intended to give the city time to better understand the long-term consequences of hosting large-scale computing facilities.
“The passing of today’s moratorium does not stop AI or data centers,” Juarez said. “It does, however, pause to hold those accountable in the development of data centers, while understanding the long-lasting impact on people and land.”
Council President Joy Hollingsworth said the temporary pause will allow city leaders to gather information before making decisions that could affect residents and utility customers for decades.
“Technology is moving fast, but our responsibility is to ensure growth doesn’t come at the expense of residents and ratepayers,” Hollingsworth said. “This pause gives us the opportunity to understand the impacts before we make permanent decisions.”
The legislation follows reports that four companies approached Seattle City Light earlier this year about building five large-scale data centers in Seattle. According to city officials, those projects could require up to 369 megawatts of electricity, roughly enough to power 300,000 homes.
The ordinance cites concerns that large-scale data centers can consume substantial amounts of electricity and water, generate noise and heat, and require costly infrastructure upgrades. City officials also noted the potential for impacts on climate goals, watershed systems and utility affordability.
Seattle currently hosts several smaller data centers, primarily in the downtown area. City leaders said the goal is to strike a balance between supporting the technology sector and protecting residents, infrastructure and public resources.
Mayor Katie Wilson praised the council’s action and said she plans to sign the legislation.
“I’m grateful to the City Council for their work on this data center moratorium, and I look forward to signing it into law,” Wilson said. “I’m glad we were able to promptly respond to community concerns about the potential impacts of large-load data centers on utility rates and the environment.”
The emergency ordinance takes effect immediately. Under state law, the city must hold a public hearing on the moratorium within 60 days while officials continue studying whether additional regulations or safeguards are needed.
