Fort Smith officials to review data center development rules

The Fort Smith Board of Directors is set to review city rules and regulations concerning data center development during its August 11 study session. This discussion includes the potential for regulating water usage by data centers that are customers of the Fort Smith water system, even those outside city limits. Director Kevin Settle initiated the review, expressing concerns about the potential strain on the regional water supply and suggesting the board should approve such projects.

This local initiative in Fort Smith follows a broader nationwide pushback against data centers, fueled by concerns over increased utility rates, high water usage, and environmental impacts. Arkansas, however, also has proponents for data center development, with State Rep. Aaron Pilkington having recently formed the Arkansas Connected Communities Association (ARCC) to promote "fiscally responsible and environmentally sound" growth. Arkansas Act 851 of 2023 also prevents local bans on data centers but allows for significant restrictions.

Fort Smith's potential move to create more stringent guidelines mirrors actions taken by other Arkansas cities. Little Rock approved an ordinance on June 3 to establish a clear regulatory framework for data centers, covering operational standards and development regulations. Similarly, Fayetteville implemented new regulations requiring water and electricity impact reports, setbacks, buffers, generator guidelines, and a conditional use review process, with Mayor Molly Rawn emphasizing the need to update city code to manage utility demands.