Representative Image of an industrial site planned for a 750-megawatt data centre and cryptocurrency mining operation (AI-generated image)
A North Carolina judge has ruled in favour of a developer challenging Chatham County’s 12-month moratorium on data centre development, in a case involving a proposed 750-megawatt facility that is also expected to include cryptocurrency mining. Morris on 17 September 2026, granted summary judgment to Eco TIP West LLC on liability and attorneys’ fees. The Chatham County Board of Commissioners adopted the temporary moratorium on 11 February 2026. Eco TIP’s complaint and press reports described the commissioners’ 11 February vote as unanimous. In its 12 February announcement, the county said it would study how other communities regulate these uses and develop zoning rules to mitigate negative impacts. The moratorium was set to last 12 months, ending on 11 February 2027, or earlier if new zoning regulations were adopted. The company’s complaint describes a project with a capacity of approximately 750 megawatts that would include cryptocurrency mining. Eco TIP says it has spent more than $11 million developing the project. The company’s court brief also says at least 30 local governments in North Carolina have adopted similar moratoria. Eco TIP filed its lawsuit in April 2026, arguing that the moratorium could not lawfully be applied to its project. The complaint challenged the moratorium under North Carolina’s planning and development laws and state constitution, and asserted a federal substantive due process claim under 42 U.S.C. § 1983. Eco TIP requested a jury trial and damages exceeding $25,000. Judge Morris heard the summary-judgment motion on 31 August and signed the order on 17 September. The company was directed to file an itemised affidavit of its attorneys’ fees and costs within 14 days of the order’s entry. The court reserved the determination and award of damages for later proceedings and directed the parties to confer and submit a proposed scheduling order for resolving those claims within 21 days. She expressed disappointment with the ruling and said the county was considering its legal options, according to Chatham Journal reporting published on 29 September.
Chatham Journal reported that County Attorney Emily Meeker said the ruling meant the project could proceed without being subject to the new regulations. The court order, signed by Superior Court Judge John M.
The county said the pause would give officials time to study the effects of these uses and develop zoning rules. The case may be the first court challenge to a data centre moratorium in the state, according to reporting by The News & Observer republished by Yahoo. Eco TIP also alleged, “upon information and belief”, that county officials met behind closed doors with opponents of data centres generally before 20 January 2026. After the decision, County Attorney Emily Meeker said the county had adopted the moratorium to pause data centre construction while it developed zoning regulations for intensive land uses.
It did not determine the amount of damages, which remain for further proceedings. The decision follows a temporary moratorium adopted in February covering data centre development in unincorporated areas of Chatham County, as officials studied the potential effects of large facilities on infrastructure and natural resources. The ordinance covers data centres, data processing facilities, cryptocurrency mining operations and associated uses in unincorporated areas of the county. Its published concerns include infrastructure capacity, water use, energy demand, noise, air pollution and water pollution. Eco TIP’s proposed facility is planned for Triangle Innovation Point West, an industrial site near Moncure. It also raised claims concerning down-zoning, statutory exemptions, vested rights and permit-choice rights. This is an allegation in the complaint, not a judicial finding. That allegation is part of the company’s case and should not be treated as a judicial finding. The county disputed the developer’s account. In its response opposing summary judgment, it argued that a zoning interpretation letter confirming data centres were a permitted use in the relevant industrial district did not amount to approval to build. The county also contended that Eco TIP’s application was incomplete when the moratorium took effect, citing outstanding requirements, including Appearance Commission approval and a fee. It disputed the company’s claim that its spending demonstrated qualifying reliance on prior county action and argued that further discovery was necessary. These were competing positions in the lawsuit. The judge’s short order does not identify which of Eco TIP’s legal arguments was decisive. The order, filed the following day, states that there was no genuine issue of material fact and that Eco TIP was entitled to judgment as a matter of law. It grants the company’s motion as to liability and attorneys’ fees. The order does not set a damages amount or provide a detailed explanation of the legal reasoning behind the result. Nor does it declare every data centre moratorium in North Carolina invalid. The ruling concerns Eco TIP’s challenge to Chatham County’s action and the claims in this particular case. The Board of Commissioners held or scheduled closed sessions concerning the handling or possible settlement of Eco TIP West LLC v. Chatham County after the ruling. The outcome of those discussions could not be independently established from the records verified for this article. The court’s order leaves the amount of damages and attorneys’ fees unresolved. The subsequent legal proceedings will determine those outstanding issues. You use AI every day. Now get your AI Quotient. Take the AIQ test.