Effingham council advances data-center moratorium and major utility projects

The Effingham City Council approved a temporary moratorium on data centers while also moving forward with major water, energy and development actions in June 2026.

The council approved an agreement for water-main work along Fayette Avenue east of Willow Street. The project was reported at just under $1.6 million, with the city responsible for paying the cost.

The council also accepted an agreement with Keystone Power Holdings for a 30-year solar power project near the city’s water-treatment plant. The action establishes a long-term municipal energy agreement, although the project’s capacity and construction schedule were not specified in the reported details.

Temporary data-center moratorium

The temporary moratorium changes how Effingham handles new data-center proposals while the pause is in effect. It is not a permanent ban on data centers. The report on the council action did not state the moratorium’s exact expiration date.

Data centers can involve decisions about land use, utilities and city infrastructure. By approving a temporary moratorium, the council created time to address those proposals through the city’s local government process before additional projects move ahead.

Water and solar agreements

The Fayette Avenue water-main agreement represents the largest dollar figure identified in the council actions. The work is planned along the section of Fayette Avenue east of Willow Street, and the city is to fund the nearly $1.6 million project.

The separate solar agreement with Keystone Power Holdings covers 30 years and concerns a project near the water-treatment plant. Together, the water-main and solar decisions affect two long-term city responsibilities: maintaining core utility infrastructure and planning for local energy supply.

Golden Fields annexation

The council annexed the third addition to Golden Fields Subdivision into the City of Effingham. Annexation brings the identified subdivision addition inside the city’s boundaries and represents another development action considered at the same time as the utility agreements and data-center moratorium.

The June decisions therefore reach beyond a single project. They set a temporary framework for future data-center proposals, commit city funds to water-main work, establish a 30-year solar agreement and expand the city’s boundaries through the Golden Fields annexation.

The City of Effingham meeting agenda records council action items involving public works, development and city administration. The reported actions provide the latest identified steps on the moratorium, utility agreements and annexation.