Cleveland Implements Moratorium on Data Center Permits
Cleveland City Council has passed an emergency ordinance to temporarily halt the approval of new data center developments within the city. Under Ordinance No. 556-2026, the city will pause the review and issuance of zoning permits, certificates of occupancy, and various other licenses or permits—including those issued by the Department of Public Utilities—specifically for data centers. This measure, introduced by Council Members Slife, Kazy, Santana, and Griffin, is intended to give the Council time to evaluate potential regulations or prohibitions regarding these large-scale computing facilities.
What's in the file
The ordinance establishes a moratorium on the processing of applications for data centers, which are defined as large physical facilities housing infrastructure like computer servers and network equipment to support services such as cloud storage, streaming, and artificial intelligence. According to 556-2026-as amended-desk copy-Final, the Council's decision is based on several stated concerns:
- Infrastructure and Utility Impact: Data centers are noted as being extremely energy- and water-intensive. The record states that "hyperscale" data centers can use as much electricity as 100,000 homes and that some use millions of gallons of fresh water per day for cooling.
- Economic and Residential Concerns: The Council noted that data centers may create fewer jobs relative to their total investment compared to other industrial uses and expressed concern that their presence in semi-industry zones could impact residential properties and land availability.
- Cost Shifting: There is a concern that connecting these facilities to the grid may shift the costs of upgrading electric transmission infrastructure to residential consumers.
The moratorium includes different timelines for different types of developments:
| Development Type | Moratorium Duration |
|---|---|
| General data center permits | From the effective date until an ordinance regulating/prohibiting them is passed or May 1, 2027, whichever is first |
| Expansion of existing standalone data centers or new standalone facilities | From the effective date until an ordinance regulating/prohibiting them is passed or 3 months after the effective date (unless extended by Council) |
Who may be affected
- Department of Public Utilities: This department is specifically named as being subject to the pause on issuing licenses or permits for these facilities.
- Residential Consumers: The record notes that the rapid growth of data centers can put upward pressure on electricity prices for residential users.
- Property Owners in Semi-Industry Zones: The ordinance notes that these facilities are likely permitted in these zones, where residential uses are also allowed.
Status and timeline
- April 24, 2026: The ordinance was introduced to the City Council.
- April 27, 2026: The ordinance was read a first time and referred to the Directors of Public Utilities, City Planning Commission, Finance, and Law, as well as the committees on Utilities, Development Planning and Sustainability, and Finance Diversity Equity and Inclusion.
- Current Status: The ordinance has officially passed.
Residents can verify these details by reviewing the official record for Ordinance No. 556-2026.
Source record
- File
- 556-2026
- Type
- Emergency Ordinance
- Status
- Passed
- Committee
- City Council
- Introduced
- April 23, 2026
Official documents
- 556-2026 data centers moratorium Slife
- 556-2026 Amend 556-2026
- 556-2026-as amended-desk copy-Final
- FINAL VERSION City Record July 24, 2026 - Page 25