Budget review, data center rules, water work on Fort Smith Board agenda
The Fort Smith Board of Directors is set to discuss potential new regulations for data center development, primarily driven by concerns over significant water usage. While no data centers are currently planned for Fort Smith, other Arkansas cities like Fayetteville and Little Rock have already adopted more stringent rules following statewide legislation that restricts local bans but allows for regulatory delays and restrictions. The city's existing policies, including a 2023 zoning change and a surplus water user agreement, are being reviewed for their ability to manage high-volume water users like data centers.
The Fort Smith Board of Directors is scheduled to discuss a range of agenda items, including a six-month budget review, potential increased data center development regulations, and $7.1 million in proposed capital projects for water system improvements. Directors Kevin Settle and Christina Catsavis specifically requested a review of data center policies due to significant water usage concerns.
While no data centers are currently being considered in the Fort Smith metro, five large projects are announced or under construction elsewhere in Arkansas. The statewide Act 851 of 2023 prevents local governments from banning data center development but allows for rules that create delays or significant restrictions. Following this, cities like Fayetteville and Little Rock have approved more stringent data center development rules.
The Fort Smith board approved a zoning change in 2023 requiring conditional use approval for data centers in "Industrial Light" zones and permitting them by right in "Industrial Moderate (I-2)" and "Industrial Heavy (I-3)" zones. Acting City Administrator Jeff Dingman noted that the city's standardized surplus water user agreement provides a mechanism to review and approve water meters larger than two inches, which should cover high-volume users like data centers.