Sandpoint P&Z rejects draft data center ban

Sandpoint Planning and Zoning commissioners voted unanimously on August 18 to deny a draft ordinance intended to ban data centers within city limits, subsequently referring the matter back to the City Council. Commissioners expressed concerns about the vague definition of a "data center" and the potential for unintended consequences for smaller technology firms. They also questioned the appropriateness of regulating data centers based on environmental factors like water and power usage, suggesting such rules would be inconsistent with existing zoning codes.

City Planner Bill Dean clarified that noise concerns would be moot, as data centers would only be permitted in Sandpoint's industrial zones, which are already exempt from noise regulations. Dean indicated that the City Council's previous directive on July 15 was to "ban data centers," not to evaluate nuanced regulatory methods. The proposed definition he presented capped data centers at 5,000 square feet, a limit commissioners deemed arbitrary and too small to distinguish between a server room and a hyperscale facility. Dean acknowledged that large hyperscale data centers, which are the primary concern, could not realistically be built within Sandpoint's limited industrial zone, suggesting the county might be a more appropriate forum for addressing such developments.