Foley has set a moratorium on data centers while the city studies the potential impact of the facilities on the community.
The Foley City Council voted Tuesday, Sept. 8, to approve the final reading of an ordinance
setting the temporary moratorium. The ordinance is now in effect for the next six months.
The ordinance 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 for six months.
Mayor Ralph Hellmich said no data centers have been proposed for the Foley area. The
moratorium will allow city officials to prepare municipal ordinances and guidelines for any future
application.
“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.
He said Foley’s city-owned electrical provider, Riviera Utilities, also has requirements that would
affect data centers being 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.”
The mayor said he did not believe that South Baldwin County would be considered as a data
center site, but city officials are preparing for any contingency.
The six-month moratorium will give city staff time to update regulations, including zoning
ordinances and technical design manuals, that have been used to regulate traditional
development. The amended regulations would focus on the impacts of data centers, such as the
impacts on water resources, air pollution and noise pollution.
During the moratorium, staff will continue to study the work done in Alabama cities and other
areas of the country, focusing on both the positive and negative impacts of these uses in those
communities.
The city will also work with Riviera Utilities to discuss water usage, power usage and anticipated
megawatt thresholds.
The city does not wish to restrict the legal use of private property. Before Foley officials consider
any proposals to build facilities such as data centers, however, updated municipal regulations
should be in place to protect the community and environment from potential impacts of these
operations.
Foley is one of the fastest growing communities in the United States. The city has worked to
meet the growing needs of an increasing population as Foley develops and at the same time to
preserve the qualities that make this community so desirable to new and established residents.
One way to help preserve these qualities as Foley moves forward is through the use of zoning
and other city regulations. The moratorium will give the city time to study the effects of the
facilities and how to modify municipal regulations to address any potential impact if data centers
or other operations were to be proposed.
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