Sanford and Lee County adopt new rules for data centers

The Lee County Commission and the Sanford City Council in North Carolina recently adopted new, proactive zoning policies specifically addressing data center development. These rules, which are part of an updated Unified Development Ordinance (UDO), aim to prepare the community for future growth in the data center industry rather than reacting to specific projects. The initiative was spurred by general industry expansion and rumors of a fracking-powered cryptocurrency mine in the Deep River area, prompting local leaders to act. According to Lee County Commission Chair Kirk Smith, while other communities imposed moratoriums, Lee County's Joint Planning Commission instructed staff to develop best practices for data center governance. The new regulations impose strict standards on data centers, requiring them to source power and water from public utilities, fund any necessary infrastructure upgrades, and obtain written confirmation that their usage will not impact existing residential or commercial rates. Fracking for power is explicitly banned. Furthermore, data centers must adhere to strict noise limits, verified by third-party consultants, and maintain greater setbacks from roads and residences than other industries. These ordinances are seen as innovative and a potential model for other localities in North Carolina and beyond. Spencer Ballus, Communications Coordinator for the Sanford Area Growth Alliance, emphasized that public participation played a crucial role in shaping these comprehensive and forward-looking rules, ensuring community concerns regarding noise, electricity rates, and environmental impact were addressed.