Siloam Springs weighs data-centre freeze on water and wastewater capacity
Siloam Springs Utility Commission, Arkansas · Meeting date: October 20, 2026 · Published: October 21, 2026
A proposed six-month moratorium would prevent Siloam Springs from accepting or approving new data-centre applications, including requests for water and wastewater capacity or utility upgrades. The measure is designed to give the city time to assess infrastructure impacts and establish tailored development rules.
Key points
- The proposed moratorium covers new data-centre development, construction, permitting, approval and opening within city limits.
- It would bar commitments to extend, expand or upgrade utility infrastructure, and prevent reservation or allocation of electric, water, wastewater or other utility capacity for a new data centre.
- The review would examine water consumption and system capacity, wastewater demand and capacity, stormwater, drainage, utility-cost allocation and other impacts.
- The ordinance was scheduled for its second reading on October 20 and would run for six months from its effective date unless ended earlier.
Full report
Siloam Springs is considering a temporary halt to new data-centre development that would also stop the city from allocating water and wastewater capacity, or making project-specific infrastructure commitments, for the sector.
Ordinance 26-25, scheduled for a second reading by the Board of Directors on October 20, would impose a six-month moratorium on the development, construction, establishment, permitting, approval and opening of new data centres within city limits. During that period, the city would not accept, process, approve or issue rezoning, development, building-permit, occupancy or other approvals for a new data centre.
The utility provisions are unusually broad. The proposal would prohibit the city from entering into or authorising special-rate arrangements, utility extensions, expansions or upgrades, and reservations or allocations of electric, water, wastewater or other utility capacity specifically for a new data centre. Routine utility operations, maintenance and system planning unrelated to a particular proposed facility would continue.
The city would use the pause to review its Unified Development Code, utility capacity and infrastructure needs. The review is to consider water consumption and water-system capacity, wastewater demand and treatment capacity, stormwater and drainage, electrical demand, backup generation, environmental effects, and the allocation of costs for utility extensions and upgrades.
The proposal states that existing city development and utility standards were not designed specifically for the combined land-use, electrical, water-use and infrastructure characteristics of modern large-scale data centres. It does not determine whether data centres should ultimately be allowed, conditionally permitted, restricted or otherwise regulated.
The draft would not affect data centres already operating lawfully before its effective date, nor projects that had obtained all final city land-use approvals and required city building permits beforehand.
This summary was generated by AI based on the source document and may contain errors.
Source: Budget Workshop II & Regular Board of Directors Meeting, Siloam Springs Utility Commission