Key Points
- Canton Town Council in North Carolina unanimously voted on 11 February 2026 to impose a one-year moratorium on data centers, cryptocurrency mining operations, server farms, and any high-density digital infrastructure facilities.
- The decision followed a packed public hearing on February 10, 2026 where over 45 residents spoke in opposition, with more than 150 attending despite limited capacity in the temporary town hall trailer damaged by Tropical Storm Fred in 2021.
- Prompted by inquiries from multiple companies about infrastructure at the former Pactiv Evergreen paper mill site, closed in 2023 after over a century of operation, demolished by Spritas Worldwide in March 2025.
- Concerns include massive electricity and water use, noise pollution, environmental impact on Pigeon River biodiversity (where fish have returned post-mill closure), low job creation despite tax revenue potential.
- Canton Mayor Zeb Smathers emphasised studying impacts before proceeding, stating data centers cannot “wreck what the good Lord gave us” and prioritising natural resources over short-term gains.
- Resident Arianna Houston said, “When I heard about the data center might be moving in, it was heartbreaking. I could feel it in my stomach that this isn’t right.”
- Other residents like Carl Courtright opposed tax breaks for non-community-benefiting businesses; Steve Konkle sought more comparisons.
- Town officials including Mayor-Pro-Temp Gail Mull, Aldermen Kristina Proctor, Tim Shepard, and Dr. Ralph Hamlett, supported the moratorium.
- Similar measures in NC: Chatham County approved moratorium this week; Edgecombe County faces opposition in Tarboro.
- During moratorium, town will draft zoning ordinances; data centers require NC Department of Environmental Quality permitting.
Inverted Pyramid Structure
- Key Points
- Why Did Canton Impose a Moratorium on Data Centers?
- What Sparked Resident Outrage at the Public Hearing?
- How Does the Former Paper Mill Site Factor In?
- What Are the Main Environmental and Infrastructure Concerns?
- Who Supported the Moratorium and What Did They Say?
- What Economic Trade-Offs Are Residents Debating?
- Is This Part of a Broader NC Trend Against Data Centers?
- What Happens During the One-Year Moratorium?
Canton (Cardiff Daily) February 13, 2026 – The Canton Town Council has unanimously approved a 12-month moratorium halting all data center developments, including cryptocurrency mining operations, in response to overwhelming community opposition and infrastructure concerns.
Why Did Canton Impose a Moratorium on Data Centers?
As reported by WLOS journalists, Canton leaders scheduled the public hearing after multiple companies inquired about water, electrical hookups, and capacity at the former paper mill site, prompting fears over unprepared ordinances.
Canton Mayor Zeb Smathers stated, “We’ve had a lot of interest about data centers, everything from crypto technology to server facilities. Our ordinances just aren’t in a place to have those conversations right now.”
The unanimous vote on 11 February 2026 pauses high-density computing facilities for one year to allow impact studies on energy, water, noise, and quality of life.
What Sparked Resident Outrage at the Public Hearing?
Over 150 residents attended the 10 February hearing in the trailer town hall, with 45 speaking against data centers; others listened outside via speaker for over three hours.
Resident Arianna Houston, who moved to Canton in 2022, remarked, “When I heard about the data center might be moving in, it was heartbreaking. I could feel it in the pit of my stomach that this isn’t right.”
Carl Courtright argued, “It needs to be something that’s going to provide for the community and provide for people that live here that call this place home and not just people that are going to move here from every other place in the country.”
How Does the Former Paper Mill Site Factor In?
The Pactiv Evergreen mill, Canton’s largest employer since 1908, closed in 2023, leading to over 1,000 layoffs and tax revenue loss; Spritas Worldwide bought and demolished it in March 2025.
Rezoned in July 2024 to light industrial and general business zones, the Pigeon River-adjacent site drew data center interest, but residents fear repeating mill’s environmental legacy.
Dr. Ralph Hamblett noted, “We know now the massive cleanup required at the former mill site and mitigation necessary to make that land safe again. Hindsight is 20-20.”
What Are the Main Environmental and Infrastructure Concerns?
Mayor Smathers highlighted, “There’s no doubt an effect on our energy, our water, our natural resources and sound,” acknowledging low jobs versus strain.
Residents praised Pigeon River biodiversity recovery post-mill closure, with fish returning; data centers face NC DEQ permitting but worry over cooling water demands.
Smathers affirmed to NC Local reporters Lilly Knoepp, “Obviously, there are economic benefits… However, we cannot and we will not for the almighty dollar sell out our natural resources, our water, our energy and our natural security.”
Who Supported the Moratorium and What Did They Say?
Mayor-Pro-Temp Gail Mull, a 30-year mill union veteran, said, “The future of Canton is my future. I care very deeply about the people of Canton… I want what is best for our town.”
Smathers emotionally referenced his six-year-old son: “At the end of the day, I have to look him in the eye and know… that his dad didn’t let him down… that all of us had that moment to do what is right, and we met that moment.”
Aldermen Kristina Proctor, Tim Shepard, and Dr. Ralph Hamlett joined Smathers in statements backing the pause before the vote.
What Economic Trade-Offs Are Residents Debating?
While some like Steve Konkle called for “comparisons in what we are wanting to get ourselves into, and a comparison against old technology… and new technology,” most prioritised long-term sustainability.
Smathers, a Democrat, noted to NC Local, “Data centers are a relatively new idea… It really can’t fit into a little perfect political box,” balancing revenue against resources.
He added, “I’m very, very bullish that we can build a new Canton that is prosperous… but at the same time not wreck what the good Lord gave us.”
Is This Part of a Broader NC Trend Against Data Centers?
Canton follows western NC communities resisting data centers over noise, energy, and pollution; Chatham County approved a moratorium this week.
In eastern NC, Edgecombe County faces pushback on a $19.2 billion Tarboro campus proposed by the News & Observer.
WUNC reports position Canton as the latest, with Mayor Smathers worrying consequences outweigh tax benefits from the mill site’s tech inquiries.
What Happens During the One-Year Moratorium?
The ordinance halts data centers, crypto mining, server farms, and similar facilities; town will study impacts and draft zoning/land use rules.
Smathers told WLOS the pause allows evaluation of environmental, infrastructure, and quality-of-life effects while eyeing redevelopment.
Town exerts influence via zoning on the mill site, despite not fully controlling Spritas Worldwide’s plans.
This decision reflects Canton’s pivot towards stewardship post-industrial decline, with residents and leaders united in caution. The moratorium buys time for informed growth, amid rising national scrutiny on data center proliferation.
