Fort Smith Board of Directors Considers New Rules, Water Surcharge to Discourage Data Center Development
The Fort Smith Board of Directors has directed city staff to draft new rules concerning water use, zoning, and other areas to discourage data center development. Directors expressed concerns about water consumption and noise, with one specifically requesting significantly higher water rates for data centers. These proposed regulations aim to make data center construction more difficult in the Fort Smith metro, despite a state law preventing outright bans.
The Fort Smith Board of Directors in Arkansas has instructed city staff to develop new or amended regulations regarding water use, zoning, and other aspects to deter data center construction within the city and surrounding metro area. During an August 11 study session, Director Christina Catsavis advocated for changes to "make it as difficult as possible" for data centers to be built, a sentiment unchallenged by other board members. Director Kevin Settle specifically proposed a water surcharge and a four-times higher water rate for data centers, emphasizing water as a city commodity.
Concerns cited by board members align with broader national trends, including massive water consumption, potential utility rate increases, noise pollution, and groundwater contamination. Deputy City Administrator Maggie Rice informed the board that staff is exploring options such as public utility capacity certifications, water usage reports, enhanced setbacks, and noise limitations, recommending an amendment to the zoning code. Acting City Administrator Jeff Dingman also noted efforts to create a "standardized agreement" for wholesale water users requiring board approval for larger connections.
This local initiative comes despite Arkansas Act 851 of 2023, supported by Gov. Sarah Sanders, which prohibits local governments from outright banning data center development but allows for rules that create delays or significant restrictions. Arkansas State Representative Aaron Pilkington, executive director of the Arkansas Connected Communities Association (ARCC), advised Fort Smith officials to engage thoughtfully and avoid assumptions, offering to arrange site visits to operating data centers to provide firsthand insights into water recirculation, noise mitigation, and utility integration. While no data centers are currently planned for Fort Smith, five large projects are underway or announced elsewhere in Arkansas.