Fayetteville City Council members say they aim to be proactive with consideration of data center rule changes

Fayetteville City Council members say they aim to be proactive with consideration of data center rule changes

News ClipNorthwest Arkansas Democrat-Gazette·Fayetteville, Washington County, AR·6/14/2026

Fayetteville City Council is considering stricter regulations for data centers, including reclassifying them as a conditional use in industrial zones and requiring detailed environmental and utility reports. These proactive measures aim to protect residents from potential negative impacts, despite state laws limiting outright bans on data centers. The Council is scheduled to vote on these proposed amendments.

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Gov: Fayetteville City Council, Planning Commission, Beaver Water District, Pulaski County Quorum Court, Little Rock Board of Directors, Saline Township

Fayetteville City Council is set to deliberate on and vote for proposed amendments to its data center ordinance, aiming to implement stricter regulations and requirements for these facilities. Co-sponsors Council members Mike Wiederkehr and Scott Berna emphasized the city's proactive approach to safeguard residents from potential negative impacts, acknowledging that while the city is not against technology, it must protect its community. Mayor Molly Rawn had initially announced these drafted changes, highlighting their role in enhancing protection for utility customers.

The proposed amendments would reclassify data centers as a conditional use in I-2 general industrial zoning, rather than a by-right use, thereby granting the Planning Commission greater discretion in approvals. This shift would also necessitate comprehensive pre-approval reports covering cooling systems, heat management, energy consumption plans, and water use projections. Additionally, the city seeks to address vulnerabilities from data centers located outside city limits but within its water district, requiring documentation to confirm adequate water supply capacity and prevent adverse impacts on existing customers.

While the changes do not constitute an outright ban, Councilman Berna believes they will significantly raise the bar for data center development in Fayetteville. Senior Assistant City Attorney Blake Pennington clarified that state law restricts local governments from outright banning data centers but permits the enactment of "reasonable regulations." The article also notes an ongoing debate regarding the interpretation of Arkansas's 2023 Data Centers Act (Act 851), which prohibits local bans but primarily focuses on crypto mining, leading to uncertainty among localities.

The challenges faced by Fayetteville are echoed elsewhere in Arkansas, with Pulaski County's Quorum Court recently failing to pass a moratorium on new data centers and the Little Rock Board of Directors approving new tiered regulations based on facility size and power demands. Broader concerns about the environmental impact of data centers, particularly their intensive energy and water consumption, are highlighted by reports from the United Nations University and the Lincoln Institute of Land Policy, which describe these facilities as "resource ravenous."