Temporary Data Center Moratorium

Inside of the Madison Common Council chamber

Moratorium Background

On January 13, 2026, the Common Council voted to approve a temporary moratorium on issuing zoning approvals for new data centers with a floor area larger than 10,000 square feet. The moratorium may last up to one year and only applies to data centers that are the principal or primary use of the property. 

Right now, Madison's zoning code does not include a definition or any specific standards or regulations for "data centers." The "telecommunications centers" use in the zoning code has historically covered this type of business in Madison but is outdated due to the evolving nature and range of data centers across the United States and Wisconsin. The moratorium allows City staff time to develop zoning and land use regulations for any potential future data centers. 


Draft Zoning Regulation Framework Public Information Meeting

The City of Madison's Department of Planning and Community and Economic Development held a public information meeting on Tuesday, October 27, 2026, to update community members on a draft framework for proposed zoning regulations for data centers within city limits. The meeting included a Q&A portion after the staff presentation. More details on that draft regulation framework are listed below.

The recording of the meeting is available on this page for those who were unable to attend, and a copy of the presentation slides is also available for reference.

Watch Meeting Recording

View Presentation Slides

Those who were unable to attend the meeting can still submit questions and feedback by sending an email to pccomments@cityofmadison.com. 


Draft Zoning Regulation Framework

These initial framework recommendations are based on months of research into the potential impacts of data centers, community concerns, and how other communities have regulated land use and zoning of data centers. 

These are not finalized proposals and more work and opportunities for public input will be done in the coming weeks and months before anything is introduced to the Common Council and other City Boards, Commissions, and Committees for their consideration.

This included discussions on this draft regulation framework at the October 19, 2026, meeting of the Sustainable Madison Committee and the October 21, 2026, meeting of the Business and Economic Resources Committee. Like the Public Information Meeting, these were only informational presentations, and no policy decisions were made.

There will be multiple additional opportunities for public comment at Board, Commission, and Committee meetings in the coming months once an ordinance is formally drafted and introduced. A schedule for those meetings will not be finalized until the proposed ordinance is formally introduced.

How would this zoning and land use framework define a data center?

For the purposes of this regulation framework, staff is defining a data center as:

"A facility used for the storage, management, processing, and transmission of digital data, which houses computer or network equipment, systems, servers, appliances and other associated components related to digital data operations. This is not a server room."

What is included in this proposed zoning and land use regulation framework?

At this time, staff recommends the following, with more detail about additional regulations provided lower on this page:

  • Data centers larger than 100,000 square feet would not be allowed anywhere in the City of Madison.
  • A data center would only be allowed to be in a single building, and only one data center building will be allowed on a property. Data center “campuses" (multiple smaller data centers on one lot) would not be allowed.
  • Three data center types will be defined based on size, each with their own specific additional zoning requirements: those that are less than 10,000 square feet, those that are between 10,000 and 50,000 square feet, and those that are between 50,000 and 100,000 square feet. For additional context, a presentation during the June 29 Plan Commission meeting included examples of these sizes.
  • Adding a "data center map" to the zoning code that creates a buffer between the industrial zones where a data center of 50,000 to 100,000 square feet may be allowed and residential areas, areas planned for residential uses in the future, and parks and open space. The map depicts areas that are already zoned for industrial uses with a buffer further limiting the areas where a data center between 50,000 and 100,000 square feet would be allowed. This is not a map of where data centers have been proposed. As of now, this map has not been finalized and more work is being done by staff that may further change where facilities of that scale would be allowed.

Proposed Data Center Types

Less Than 10,000 Square Feet

  • Example: These types of data centers are often a tenant in a building and support a single user or multiple users. This includes businesses that lease space on their servers for off-site customers. They are typically a tenant in an existing building.
  • Zoning Districts: Would be allowed in mixed-use, downtown, commercial, campus-institutional, employment, and industrial zones. 
  • Additional Regulations: Would not be allowed on the ground level of a building except when in industrial and campus-institutional zones. Only one allowed per zoning lot.

10,000 to 50,000 Square Feet

  • Example: These types of data centers are often in a stand-alone building and provide server space for multiple off-site businesses.
  • Zoning Districts: Would only be allowed in suburban employment, campus-institutional, and industrial zones. Would not be allowed in the Transit-Oriented Development (TOD) Overlay district. 
  • Additional Regulations: Would not be allowed to be located within 1,000 feet of the boundary of another parcel occupied by a Medium or Large Data Center. Mechanical equipment and emergency generators would be required to be surrounded by a solid screening wall. Would be required to provide a Noise Mitigation Plan that identifies strategies to comply with the Noise Ordinance. Only one allowed per zoning lot.

50,000 to 100,000 Square Feet

  • Examples: These types of data centers are often in a stand-alone building and provide server space for one or multiple off-site customers. At larger sizes, they are more likely to house infrastructure that could support AI functions.
  • Zoning Districts: Would only be allowed in limited parts of industrial districts. Would not be allowed in the Transit-Oriented Development (TOD) Overlay district. 
  • Additional Regulations: Would not be allowed to be located within 1,000 feet of the boundary of another parcel occupied by a Medium or Large Data Center. Mechanical equipment and emergency generators would be required to be surrounded by a solid screening wall. Would be required to provide a Noise Mitigation Plan that identifies strategies to comply with the Noise Ordinance. Only one allowed per zoning lot. A map added to the zoning code would identify further limits on where Large Data Centers could be located to provide a buffer from residential and open space areas. This map has not yet been finalized.

You can learn more about where all of the zoning districts mentioned here are located by using the City of Madison Zoning Districts map. The map's legend will help you identify which colors on the map correspond to each zoning district type.


Frequently Asked Questions

What opportunities will there be to provide feedback?

You do not need to attend a meeting to provide feedback. Public comment can be emailed to pccomments@cityofmadison.com. 

Zoning code changes are typically reviewed by the Plan Commission, which includes an opportunity for public comment once a proposed zoning code change is formally drafted and introduced as an agenda item.

City staff anticipates a longer approval process once a zoning code change is proposed that will likely include the proposal being referred to additional committees, which would then provide additional opportunities for public feedback. Every City of Madison Board, Commission and Committee allows for public comment on agenda items.

Formal ordinance text has not yet been drafted or introduced to the Common Council. Once ordinance text has been drafted and introduced, it will likely be referred to the Sustainable Madison Committee, the Business and Economic Resources Committee, and the Plan Commission for consideration, with those meetings providing additional public comment opportunities.

The dates of those meetings will not be determined until the proposed ordinance is introduced and given a referral schedule.

The City intends to widely publicize any additional opportunities for feedback through news releases, social media updates, and alder blogs to ensure transparency throughout the moratorium.

Recordings of previous committee discussions and public information meetings are available under the "Previous Presentations and Meetings" section of this page.

Has the City received any proposals to create a new data center?

No. 

There are no active proposals, approvals or formal applications for new data centers anywhere in Madison and we are not aware of any being proposed.

Are there any data centers currently in Madison?

Yes.

Staff used data from the Building Energy Savings Program and third-party data center maps to identify existing data centers in the city and found approximately 10 properties believed to have a data center component.

Of those, there are three properties where a data center is a principal use. All of them are less than 10,000 square feet. They are located in Urban Mixed Use (UMX), Downtown Core (DC), and Industrial - Limited (IL) zoning districts.

There are seven properties that have a data center component that supports a principal use. Of those:

  • Four properties have data centers that are less than 10,000 square feet. The properties are in Suburban Employment Center (SEC) or Planned Development (PD) zoning districts.
  • Three properties have data centers that are less than 50,000 square feet. The properties are in Suburban Employment (SE), Suburban Employment Center (SEC) or Planned Development (PD) zoning districts.

All of the existing data center uses would be permitted based on the proposed regulatory framework. Staff were unable to verify if they would also meet all of the proposed supplemental regulations with information available. 

The City has not received any complaints related to the existing data centers.

How can the City of Madison regulate data centers?

The City of Madison (and all municipalities in Wisconsin) are legally able to regulate:

  • Land uses within a zoning district
  • Building size
  • Lot size
  • Lot coverage (how much of the lot is occupied by the primary land use)
  • Setbacks from lot lines and other adjacent land uses

The City regulates other concerns that are common to hyperscale data centers such as noise, lighting, stormwater and sewer discharge quality. These impacts are already regulated by other local codes, so the scope of the work done during the moratorium has been focused on zoning and land use regulations to set baseline standards.

How can't the City of Madison regulate data centers?

The City of Madison (and all municipalities in Wisconsin) are not legally able to regulate:

  • Water usage
  • Energy usage
  • Energy sources
  • Energy rates and energy rate impacts on residents
  • State building code requirements

The City's zoning code also cannot differentiate between data centers used to support AI models and data centers used for other purposes, like private servers, cloud storage or applications, or other technology needs for individuals or businesses. 

What does the data center moratorium do?

The moratorium is a planning tool that "presses pause" on any potential proposals and will give the City of Madison time to set responsible rules for a new land use category.

All new uses are required to receive zoning approval before they can occupy land, a tenant space, or an entire building. During this moratorium, no zoning approvals can be granted for new principal- use data centers or telecommunications centers over 10,000 square feet in floor area.

Because zoning approval is required before a building permit may be issued for any new use of a building or tenant space, the moratorium will also mean that no building permits or certificates of occupancy will be issued for new principal use data centers or telecommunications centers if they are over 10,000 square feet in floor area.

The floor area measurement includes only the space occupied by the data center or telecommunications center principal use. It does not include other tenant spaces in a building that are separate principal uses.  

The moratorium does not apply to data centers or telecommunications centers that serve another principal or primary use allowed on the lot, such as one within and serving a research lab or office building. 

Why was the moratorium put into place?

Without zoning regulations that reflect current best practices to responsibly manage this use, the construction of new data centers could impact the implementation of the City's long-range land use plans, affect property values, or possibly be detrimental to the public health, safety, and general welfare of our community.  

A moratorium allows city leaders and staff to research and establish well-informed, consistent zoning and other regulatory standards for data centers and telecommunications centers and provides opportunities for public participation in the process. 

How will the moratorium end?

The one-year moratorium approved by the Common Council will expire on January 24, 2027.

By or before that date, the City will need to amend the zoning code to create land use and zoning standards that are appropriate for future regulation of data center uses. The moratorium will end when an ordinance is adopted.

What work has been done during the moratorium?

City of Madison agencies, including the Office of the City Attorney and the Department of Planning and Community and Economic Development have researched best practices and safeguards. This includes creating a definition of "data centers" that will be added to the zoning code, updating other land use types if needed, identifying the specific planning and development considerations for the responsible operation of data centers in the future, and proposing potential zoning or other local ordinance standards for the operation of these uses within the city.

City staff met with other municipalities on how they have handled the creation of data centers in their communities and have also been meeting with other experts and stakeholders.


Previous Presentations and Meetings

Common Council - January 13, 2026

The Common Council discussed and voted to approve a moratorium on zoning approvals for data centers of more than 10,000 square feet as the primary use of a property.

Watch Meeting Recording

View Ordinance Text

Public Information Meeting - June 3, 2026

The City of Madison held a virtual public information meeting on its data center moratorium on Wednesday, June 3, 2026. 

This meeting provided an update on the authority and tools the City has – and does not have – to regulate data centers, the research being done by City staff, the potential impacts of data centers the City is considering in its analysis, and a timeline for a draft policy proposal. City officials also took questions and sought input from the public after an informational presentation. 

Watch Meeting Recording

Sustainable Madison Committee - June 22, 2026

City staff shared a presentation with the Plan Commission on how Madison could -- and could not -- regulate data centers.

Watch Meeting Recording

View Presentation Slides

Plan Commission Meeting - June 29, 2026

City staff shared a presentation with the Plan Commission on how Madison could -- and could not -- regulate data centers and how other communities have been regulating data centers.

Watch Meeting Recording

View Presentation Slides

Plan Commission Meeting - September 29, 2026

City staff presented an update to the Plan Commission on the work being done during the moratorium, which included recommendations for a potential framework for how Madison's zoning code could be amended to add regulations for data centers. The purpose of this meeting was to have a discussion about the staff recommendations. No final actions were taken.

Watch Meeting Recording

View Presentation Slides

Read Staff Memo

Sustainable Madison Committee Meeting - October 19, 2026

City staff presented a recap of the work done so far during the data center moratorium, definitions for the different types of data centers, and recommendations for a draft framework of potential zoning and land use regulations for data centers before hearing public comment and answering questions from committee members.

Watch Meeting Recording

View Presentation Slides

Business and Economic Resources Committee - October 21, 2026

City staff presented a recap of the work done so far during the data center moratorium, definitions for the different types of data centers, and recommendations for a draft framework of potential zoning and land use regulations for data centers before hearing public comment and answering questions from committee members.

Watch Meeting Recording

View Presentation Slides

Where are we in this process?

  1. Research Completed

  2. Engagement Active

  3. Introduction Upcoming

  4. Boards, Commissions & Committees Consideration Upcoming

  5. Common Council Consideration Upcoming

Additional Information and Resources

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