The Petersburg Borough Assembly on Nov. 2 considered a potential moratorium on permits for certain data centers through September 2027. Members voted to move it forward, with a second reading next week.
If approved by the Assembly three times, the temporary freeze would prevent the Borough from issuing permits for data center projects that use uncontained cooling systems, require more power than allowed, or rely on generators rather than Petersburg’s power grid.
Borough staff would study data center impacts and look into regulation options during the moratorium.
Reelected Vice Mayor Jeigh Stanton Gregor sponsored the ordinance. He said the proposal is imperfect, but “addresses the bigger concerns the community has.”
“Although not perfect, I think it’s something we can all support of what we know we don’t want as a community,” Stanton Gregor said.
He said it would prevent an off-grid, large-scale, multi-acre data center from cropping up in Petersburg during the moratorium. And, pending a major update to Borough zoning law, the moratorium could eventually apply to borough land beyond town limits, “whether it be in downtown Petersburg or in Thomas Bay.”
As written, the moratorium would apply where the Borough has platting authority. The Borough is working on an update to its zoning law to extend that authority outside of town, but that anticipated change has not yet taken shape.
Assembly Member Donna Marsh agreed the proposed moratorium “lays some groundwork.”
“Perhaps fine-tuning is a good idea,” Marsh said. “But to get the ball rolling into a more perfect ordinance, I think this is heading in the right direction.”
There are currently no data centers in Petersburg, but they’re discussed regularly at assembly meetings. A local developer is interested in building one in town.
Motions for a moratorium on all data centers have previously failed to garner Assembly support.
Even so, Assembly Member Jeff Meucci sought to expand the scope of the proposal.
“I move to amend the ordinance to make its provisions applicable to all data center developments, regardless of whether they utilize closed-loop cooling systems, or operate on or off the [municipal] electrical grid,” Meucci motioned during the assembly meeting, seconded by Member Marsh.
He cited concerns about data center expansion and power consumption. Those concerns are addressed in the proposal’s language as written. Still, Meucci wanted to make the change before the proposal’s next public hearing, so the community could weigh in on a broadened version.
Safeguards, like power sale agreements, protect the municipal electric grid. However, a data center could technically bypass the Borough’s protections if it runs on generators instead.
Utility Director Steve Harbour helped draft the ordinance. He told the Assembly it’s important to approve a version of the moratorium that would prevent generator-powered data center projects.
“Whether you amend this to ‘all,’ or you leave it as-is, this ordinance needs to pass banning generators because it’s not out of the realm of possibilities… somebody decides down the road to run generators 24/7,” Harbour said.
Meucci’s amendment failed in a 3–3 tie vote. So, the proposed moratorium did not change.
Members ultimately voted 5–1 to move the proposed moratorium forward to a second round of consideration. Meucci voted against the measure because he didn’t think it was broad enough. Assembly Member Scott Newman was excused from the meeting.
The Assembly will consider the moratorium again on Nov. 16 and hear any public feedback on it at that meeting.
