New Hanover County leaders question data center rules amid AI boom
New Hanover County leaders are reconsidering local development rules for data centers due to increasing demand for AI and cloud computing, which is straining land and power grids. Commissioners held a work session to evaluate current ordinances, which allow data centers by-right in four zoning districts, and expressed a desire for more direct oversight for large-scale projects. Planning staff will study policy alternatives, including updating zoning and drafting performance standards, before returning to the commissioners for formal action.
New Hanover County leaders are re-evaluating how local development rules apply to large-scale data centers amidst a surge in demand for artificial intelligence and cloud computing infrastructure. County commissioners in Wilmington, N.C., held an informational work session to review existing ordinances, which currently classify data centers as an industrial use and permit them by right in commercial service, airport commerce, light industrial, and heavy industrial zoning districts.
Commissioners, including Dane Scalise and LeAnn Pierce, expressed concerns about the lack of elected oversight, the resource-intensive footprint of hyperscale facilities, and the strain on the power grid, water resources for cooling, and potential noise impacts. They voiced a desire to regain discretionary authority over such projects, which currently can receive administrative approval without public hearings or commissioner review. While no formal vote was taken and a moratorium was not enacted, the board clearly indicated a need for more direct control before any major data center projects proceed.
County planning staff were tasked with studying policy alternatives. These include updating zoning districts, potentially ending by-right approvals for commercial-scale data centers, and drafting new performance standards related to noise and natural resource protection. The staff will present these alternatives to the commissioners for formal action, aiming to balance community protections with the operational needs of existing local employers.