Arkansas Cities Weigh Data Center Restrictions Amid Growth and Environmental Concerns

Cities and counties across Arkansas are enacting or deliberating new restrictions on data center development, balancing economic investment with public concerns over electricity, water, noise, and property impacts. Local officials are leveraging zoning, permitting, and operating standards as state law prevents outright bans on data centers.

Fayetteville adopted regulations in June mandating Planning Commission approval, requiring data centers to be located in general industrial districts, and setting a 1,000-foot residential buffer. These rules also address water, electricity, cooling, and wastewater management. The City Council was scheduled to review additional environmental and operational requirements. Meanwhile, Little Rock's ordinance restricts hyperscale data centers to industrial zones and establishes standards for water, noise, landscaping, generators, and utility planning, coinciding with Google's planned $1 billion facility at the Port of Little Rock.

Pulaski County's proposed moratorium for unincorporated areas, which was prompted by plans for an AVAIO Digital facility near Wrightsville, was ultimately rejected after an initially misreported vote was corrected. In contrast, Carroll County unanimously enacted a one-year moratorium in June, covering data centers, AI computing, and cryptocurrency mining, to allow time for studying potential impacts and developing permanent regulations. Union County also implemented a one-year moratorium on July 10, effective until July 9, 2027, to investigate demands on local infrastructure, following discussions about a proposed "Union County Campus" near El Dorado.

This diverse range of local actions highlights the increasing scrutiny data centers face as Arkansas seeks to attract the industry's economic benefits while addressing concerns from residents regarding utility demands and environmental effects.