Expert’s Corner: Data center boom puts zoning in spotlight
The rapid growth of AI is driving increased demand for data centers, bringing their potential environmental impacts to the forefront of municipal zoning discussions. Local governments are utilizing tools like moratoriums and specific zoning regulations to manage data center development and mitigate concerns regarding electricity, water usage, noise, and pollution. This is highlighted by examples such as Morris, CT enacting a moratorium and Groton developing regulations.
The proliferation of artificial intelligence has led to a surge in demand for data centers, prompting critical questions about their placement and potential impacts. Data centers, which power AI systems, require substantial electricity, can consume millions of gallons of water annually for cooling, generate persistent noise, and contribute to air pollution through increased emissions from power plants and backup generators. These concerns are placing municipal zoning laws under scrutiny, as local governments must balance the benefits of data centers, such as property tax revenue and job creation, against their environmental and community impacts.
Municipalities are employing various land use controls to manage data center development. Andrew R. Morin, an associate in the Real Estate group at Hinckley Allen, highlights tools such as zoning moratoriums, which temporarily halt development to allow time for officials to establish regulations. For example, the town of Morris, Connecticut, enacted a one-year moratorium on data center development in May. Other tools include comprehensive zoning regulations, as demonstrated by the town of Groton, which has implemented rules limiting data center size, proximity, cooling infrastructure, fuel sources, and noise mitigation. Some municipalities, like Mansfield, Massachusetts, have even imposed outright bans on data centers exceeding a certain electricity demand.
Developers are advised to anticipate a rigorous regulatory process involving municipal, state, and federal agencies, similar to other complex proposals. The article cites the Stratos project in Box Elder County, Utah, as an example where a large data center project proceeded with minimal local oversight due to a lack of prior zoning regulations, emphasizing the need for proactive planning by municipalities.