CHILLICOTHE, OH — In a dramatic policy reversal, Chillicothe City Council voted 8-1 on Monday to reconsider and strike down the city’s recently enacted 60-day moratorium on data centers, clearing a potential hurdle for a proposed facility at the former US Paper Mill site.
The council’s shift marks a major departure from its unanimous vote on August 24 to suspend data center construction and rezoning. The turnaround came after councilmembers were presented with a newly surfaced letter that the city had sent to paper mill officials earlier this year. The letter confirmed that under Chillicothe’s new Unified Development Code (UDC), nothing prevented a data center from operating on the property.
Seven council members noted they had not seen the document until Monday’s committee meeting—a full week after developer Alignment Engine met with city leaders and residents to present plans for the campus.
During the public session, several local residents and current workers at the paper mill site spoke in favor of the development. Following public comment, Councilmember Julie Preston read a statement citing the newly discovered letter as her reason for reconsidering her position. Other members followed suit, leading to a formal motion to reconsider the moratorium. The subsequent vote effectively killed the ban in an 8-1 decision.
The vote re-opens the door for Alignment Engine’s proposed data hall on the historic paper mill grounds. At a community meeting last week, representatives for the company pledged to operate within local regulations, stating the facility will not request property tax abatements, will generate minimal noise, and will draw no more power or water than the previous paper mill operations.
Despite repealing the temporary moratorium, Chillicothe officials are still expected to work on updating the city’s UDC to establish permanent guidelines and limits for future data centers within city limits.
