Nashville-Davidson County and Cedar Hill in Robertson County have moved to temporarily pause certain data center developments while considering regulations. Memphis leaders have also weighed a possible moratorium. Concerns include the facilities’ electricity and water use, as well as the scale of proposed projects.

Harmol Samra, CEO of data center developer Host Digital, said he accepts that communities may need time to review proposals. A moratorium can be useful, he said, when it has a defined timeline and gives officials, residents and developers a chance to work through standards and expectations.

The scale of new projects is a key source of concern, Samra said. Facilities that once drew attention at 50 or 100 megawatts are now being eclipsed by proposals for campuses requiring a gigawatt or more, as demand for computing power grows alongside artificial intelligence.

Host Digital focuses on projects of roughly 20 to 100 megawatts, Samra said, and often looks to reuse electrical infrastructure at properties previously occupied by industrial or other power-intensive businesses. He said developers should speak with residents and local officials early about a facility’s operations and potential effects.

Electricity costs are another point of contention. Samra said utilities study whether a project can be served and what upgrades it may require, and argued that developers should pay for the infrastructure needed to support their facilities. He also said large industrial customers may have different rates from residential customers.

Whether households are shielded from costs ultimately depends on utility policies, rate structures and how infrastructure investments are financed. A developer’s commitment to cover project-related expenses does not by itself establish how costs will be allocated among customers.

Water use depends on a facility’s design and cooling system, Samra said. Some newer data centers use closed-loop liquid cooling, which circulates coolant through equipment and can reduce water demand compared with other approaches. Actual use varies with technology, climate and operating needs.

Samra cited construction work, specialized maintenance jobs and property tax revenue as potential community benefits. He said Host Digital does not seek tax incentives and that discussions with local officials can identify community priorities, including possible school or infrastructure improvements.

For local governments, the challenge is weighing those potential benefits against resource demands and impacts on nearby residents. Samra said moratoriums can give communities time to consider zoning, setbacks and other requirements, but argued that a defined pause should include a path toward decisions rather than an indefinite halt.