- June 2, 2026
A discussion initiated by Councilman Ty Miller on Tuesday led Palm Coast city leaders to explore how data centers should be regulated locally and whether the city should support a temporary pause on new projects while officials study the issue further.
The conversation centered on a proposal advanced by Flagler County Commissioner Andy Dance that would place a one-year moratorium on new data center approvals in unincorporated Flagler County while local governments research potential impacts and develop regulations. Vice Mayor Theresa Pontieri asked for council consensus to send a letter supporting Dance's effort, arguing that governments need time to better understand the rapidly evolving industry.
“I was actually going to ask for consensus from council to give a letter of support to the county for what Commissioner Dance's initiative was, which was to do a one-year moratorium while we as government research these things,” Pontieri said.
Pontieri said artificial intelligence and the infrastructure needed to support it have emerged so quickly that local governments are still learning about the implications, including impacts on water supplies, power demands and surrounding communities.
“It could be a lot of fearmongering that's going on and these things may not come to fruition or it could be even worse than what's being projected,” she said. “Why not take the opportunity to educate ourselves, make sure we're protecting the city and the county in the meantime?”
Miller, who brought the topic forward for discussion, cautioned against adopting a broad moratorium without first clearly defining what constitutes a data center. He said the city should avoid unintentionally delaying projects already in development that may not fit the traditional data center model.
“My concern is I don't want to affect anything that's already in the works that we know is not one of those things,” Miller said. “But if there's no clear definition of what a data center is, then maybe we're jumping in on that and causing that to halt.”
Council members discussed developing thresholds based on factors such as square footage, water consumption, power demands, noise and proximity to residential neighborhoods and schools. The goal would be to identify projects requiring additional review while ensuring smaller facilities are not swept into broader restrictions.
By the end of the discussion, council members directed staff to begin researching how data centers should be defined and regulated in Palm Coast. Staff was also asked to examine potential thresholds and standards that could be incorporated into the city's land development code, while council expressed support for preventing approvals of new data centers until that work is completed.
