Custer County Planning Commission Recommends Data Center Zoning Changes, Proposes BESS Moratorium

The Custer County Planning Commission has voted to recommend changes to county zoning regulations affecting data centers and to propose a 12-month moratorium on battery energy storage systems. The proposed data center regulations, which apply to rural areas of Custer County, will now be sent to the Custer County Board of Supervisors for review. The commission's decision follows months of research, public discussion, and site visits.

A key aspect of the proposed regulations for data centers is the inclusion of a community benefits agreement requirement. This agreement, inspired by Nebraska's LB 1010, would mandate legally binding commitments from data center developers to Custer County. These commitments could address road and infrastructure improvements, emergency response funding, public safety training, utility impacts, and environmental monitoring, as noted by Planning Commission Chairperson Butch McGinn.

Public comments during the meeting largely focused on potential negative impacts of data centers. Residents like Cole Tierney and Kevin Cooksley voiced concerns over water use, electricity demand, setbacks from residential areas, and noise. Deborah Miller specifically expressed worry about the impact on the Ogallala Aquifer. Commission members discussed solutions like closed-loop cooling systems and measures to manage electricity demand through Custer Public Power.

Separately, the commission also approved the recommendation for a 12-month moratorium on battery energy storage systems. Custer County Attorney Steven Blowers indicated this period would allow for research into fire hazards, lithium battery disposal, and facility sizing. The commission also updated the definition of an abandoned data center and began reviewing the county's comprehensive plan, which dates back to the late 1990s.