ATHOL – The Board of Planning and Community Development is moving forward with a proposed moratorium on data center development as the town considers how the facilities should be regulated.

The board voted unanimously at its August meeting to send a draft moratorium to town counsel for review. The temporary measure would pause approvals for data center development while the town works on zoning regulations. It was discussed that this pause last a year, but this was not finalized.

The issue is also receiving attention at the state level. In June, Gov. Maura Healey’s administration paused new applications for a state tax incentive for qualifying data centers and released a framework aimed at addressing energy costs, infrastructure, water use and other potential impacts.

In June, Holyoke became the first community in Massachusetts to enact a citywide ban on AI data centers. The ban, which will prohibit any AI data center development over 12 megawatts, passed in a 9-4 vote.

Athol Director of Planning and Community Development Eric Smith said Select Board member Marc Maxwell had previously brought the issue to the board.

“My concerns are just because of the energy use, the water use, and nothing’s set right now,” Maxwell said. “If we just have a moratorium for however long, just so you all can get together and we can get more information and figure out what’s going on.”

Board Chair Dave Small pointed to the town’s previous approach to solar development, which included a moratorium. He said the town went through a full process, heard from numerous people and ultimately developed a policy.

“I think a year is not unreasonable, and we could revisit it next year to see how things go,” Small said.

Smith said he has been looking at how other communities have approached data centers. He used a moratorium previously considered in Mansfield as a starting point for Athol’s proposal and is collecting examples of data center zoning. The draft includes a definition of a data center and would apply to building permits and other approvals needed.

The moratorium would give the town time to gather more information about issues such as water and electricity use. Maxwell said he had read about data centers using closed-loop cooling systems instead of open systems, which can reduce water use, though he said not all facilities use that technology.

Small said the town would also need to consider where a data center would get its power. He said Athol barely has enough power for what is already in town.

“We’re actually going to have to come out of the moratorium with a plan,” Small said. “In the meantime, we should be working on the solution about how the final bylaw should be written.”