City Council reverses course, lifts Data Center moratorium

Reconsideration leads to revote to defeat ban, which could lead to data hall on paper mill campus

In a surprising reversal, Chillicothe City Council voted Monday to reconsider and then lift the city's 60-day moratorium on data centers — a move that could pave the way for the planned data hall on the former paper mill site.

Citing a letter the city sent earlier this year — which told US Paper Mill officials that nothing in the city's new Unified Development Code prevented a data center on the site — seven councilmembers said they hadn't seen it until Monday's committee meeting. That's long after their unanimous vote for the moratorium on Aug. 24, and a full week after Alignment Engine, the company proposing the data hall, met with council and the community to unveil project details.

After hearing from community members — including several people currently working at the former paper mill site who spoke in favor of the development — Councilmember Julie Preston read a statement citing the letter as her reason for changing her earlier vote. Several others on council followed suit. After discussion and consultation, the council requested a motion to reconsider, which passed. The council then re-voted on the original moratorium and struck it down, 8-1.

What happens next is unclear. Alignment Engine told the community at last week's meeting that it would follow whatever the city legislates, and said it wouldn't ask for property tax abatements, would use no more power and water than the former paper mill did, and would produce less noise. The city is expected to update the UDC to help limit future data centers within city limits.

The Chamber will continue tracking this process and share updates as the city's review moves forward.

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