Canton officials are considering a temporary moratorium on new data centers and cryptocurrency mining operations following a public hearing that revealed strong community concerns. The hearing highlighted worries about noise, environmental impact, and energy consumption related to potential development at the former paper mill site.
The Canton Town Hall hosted the public hearing on February 11, 2026, to gather resident input on a potential pause on new data centers, cryptocurrency mining operations, and server farms. This action comes after preliminary inquiries from companies regarding infrastructure capacity at the mill site. The hearing was scheduled by Mayor Zeb Smathers and the town board to address community concerns before any further action.
While no final development plans are in place, reports of interest in data centers for cloud storage, AI, or crypto mining sparked concerns among residents. Community members voiced opposition, citing potential risks to water resources, air quality, and the area's character. The absence of site-specific environmental studies has heightened these worries. One resident argued that data centers could offer economic revival after the mill closure by providing construction and high-tech jobs.
Key Concerns Raised
Residents expressed concerns about the constant operational sounds from cooling systems and servers impacting quality of life. The significant electricity and cooling water demands of these facilities also raised worries about straining local grids and resources in Haywood County. Officials noted the potential for low permanent job creation despite possible tax revenue.
Mayor Smathers emphasized the importance of protecting citizens, particularly regarding energy consumption, water usage, and noise. A motion was passed to hold the hearing, and a vote on the moratorium is expected to follow, allowing time for studies on the legal, environmental, and infrastructure implications. The proposed pause is intended to be temporary, providing an opportunity to develop ordinances for regulating these industries, which are not currently in place.
The former paper mill, a long-standing economic presence in Canton, closed in May of 2023, resulting in job losses and ongoing discussions about redevelopment. Similar moratoriums have been implemented in other areas, reflecting broader concerns about the impact of these facilities.
WNCTimes

