Sanford and Lee County adopt new rules for data centers

The Lee County Commission and the Sanford City Council in North Carolina recently adopted new, comprehensive zoning policies for data centers, making their community one of the best prepared in the state. Spencer Ballus, Communications Coordinator for the Sanford Area Growth Alliance (SAGA), stated SAGA's full support for these proactive measures, thanking local civic leaders for their foresight. Prior to these updates, neither Sanford nor Lee County had specific regulations for data centers, a common scenario nationwide given the rapid expansion of the industry. However, motivated by a forward-looking policy ethos and rumors of a fracking-powered cryptocurrency mine in the Deep River area, local leaders chose to act preventatively. Lee County Commission Chair Kirk Smith noted that while other communities implemented moratoriums, the Lee County Joint Planning Commission proactively sought best practices to develop a suitable rule set for their Unified Development Ordinance (UDO). The updated UDO imposes stringent requirements on any future data centers, ensuring public safety and well-being. Key provisions include a ban on fracking for power, mandating that data centers source electricity from public utilities and cover any necessary grid upgrades to protect existing customer rates. They must also obtain water and wastewater capacity from public utilities without impacting current rates and are prohibited from wastewater discharge. Strict noise level standards, verified by third-party consultants, and increased setbacks from roads and residences are also mandated. These innovative ordinances are seen as a model for data center governance that could be emulated by other local governments across the state. Public participation was crucial in shaping these rules, with residents' concerns about noise, electricity rates, and fracking directly informing the final regulations.