Another Birmingham area city approves a pause on data centers

The city of Helena is hitting the brakes on industrial expansion. Local council members officially approved a six-month moratorium this week, placing a temporary halt on new or expanding data centers, as well as a variety of other businesses.

A Timeout for Zoning

During Monday night’s council meeting, leaders voted to pause development for gas stations, auto parts stores, mechanic shops, and dealerships for both automobiles and manufactured homes. According to the city’s ordinance, the measure is intended to preserve the status quo while officials analyze regulatory mechanisms and draft necessary zoning updates.

Helena’s new definition for a data center is broad, covering any facility designed to store, process, or transmit digital information. [Can’t see the map? Click here.]

Regional Trends

Helena is not alone in its cautious approach. The city joins at least 11 other municipalities and one county that have enforced temporary bans on data centers. Most of these measures are clustered throughout the Birmingham metro area.

Located in Shelby County, about 20 miles south of Birmingham, Helena is home to approximately 23,000 residents, per the latest census data. The move comes as neighboring areas like Bessemer and McCalla have seen intense public pushback regarding Project Marvel, a $14.5 billion data center campus slated to be operated by QTS. Residents in those communities have actively challenged city leadership over the massive development, which was recently subject to a transparency-focused lawsuit.

As of now, Helena officials have not provided a formal comment regarding the new policy.