Palm Coast Targets Loopholes To Better Restrict Data Centers and Prevent Hidden Expansions
Palm Coast is amending its Land Development Code to classify data centers as mostly prohibited land uses, requiring a supermajority City Council vote for approval. The city aims to prevent developers from exploiting loopholes to avoid public hearings or hide phased expansions. This action comes amidst concerns about potential state legislation that could preempt local oversight.
The Palm Coast City Council is moving to significantly restrict data center development by reclassifying them as mostly prohibited land uses within its Land Development Code, requiring a supermajority (four out of five votes) for approval as a special exception in industrial zones. The proposed amendments are slated for a first reading next week and a final reading on October 6.
City officials, including acting community development director Phong T. Nguyen, acknowledge the balance between attracting commercial development for tax revenue and implementing strict oversight. The council is also exploring further amendments to close loopholes that developers, such as DC Blox with its Town Center data center, have used to avoid public scrutiny and administrative thresholds for project size. Council members Theresa Pontieri and Ty Miller expressed urgency, fearing potential state preemption that could strip local governments of their ability to regulate industrial technology projects. A new ordinance specifically addressing data centers, including performance standards like closed-loop cooling systems to minimize water consumption, is also in development.
Council member Miller voiced strong concerns about a past administrative approval of the Town Center data center, which expanded without public knowledge, stating that he was "stunned" by the revelation of its ultimate 100,000-square-foot facility plan, initially disclosed by DC Blox representative Bill Thomson. City Attorney Marcus Duffy suggested researching how other communities prevent such piecemealing of projects to ensure future phases or ownership changes still undergo public review.