Fayetteville City Council working to beef up regulations on data centers

The Fayetteville City Council is preparing to vote on new legislation next week designed to deter data centers from establishing operations in the city, with a particular focus on those located both within and outside city limits but connected to the city's utility services. Mayor Molly Rawn announced the drafted legislation, co-sponsored by Councilmembers Scott Berna and Mike Wiederkehr, emphasizing the need to update existing code to address the evolving nature of data center technology.

During a recent agenda session, city officials discussed the proposed changes, which include stricter regulations on water and energy consumption. Senior Assistant City Attorney Blake Pennington noted that while a complete ban on data centers is not feasible under state law, local governments can implement "reasonable regulations to protect the peace, health and safety" of residents. Councilmember Wiederkehr clarified that the intent is not to ban data centers or be anti-technology, but rather to ensure fair utility rates for customers by preventing one entity's high consumption from negatively impacting others.

The new legislation seeks to classify data centers as a conditional use in I-2 general industrial zoning, a change from their current by-right status. This adjustment would grant the Planning Commission greater authority to assess potential adverse impacts of data center projects on public interest before approval. Proposed safeguards include mandatory pre-approval reports detailing cooling systems, heat dissipation, energy management plans, and water use projections. Several council members acknowledged that this is likely an initial step, and further iterations of the ordinance may be necessary as more is learned about data center impacts.