Penny: End-user must be known before council decision on data center permit
Statesboro City Manager Charles Penny announced that officials will not approve a special use permit for a proposed data center on Burkhalter Road until the end-user is known. This decision follows the approval of a zoning change for the 26.94-acre site, owned by 4AM Development LLC. The project could involve a $1.2 billion investment, and the special use permit application is pending.
Statesboro City Manager Charles Penny stated that city officials will not consider approving a special use permit for a data center project on Burkhalter Road until the identity of the end-user company is disclosed. This assertion came during a Tuesday meeting following the Statesboro City Council's recent 3-2 vote to approve a zoning change for the 26.94-acre site, transitioning it from high-density residential to office use. The property is owned by 4AM Development LLC, whose principals, Bobby Bagwell and Charles C. Way, are primarily residential developers and acknowledge they lack the capital and expertise to build the data center themselves. They are seeking an operating company, with the project potentially involving a $1.2 billion investment.
Penny emphasized that the council's responsibility is to protect citizens, and approving a special use permit without knowing the end-user would be akin to signing a "blank check." The special use permit application has not yet been submitted, but once received, the Planning Board will review it and make a recommendation to the City Council, which holds the final decision-making authority. The public will be notified when the application is advertised for the Planning Board meeting.
The city's engagement with data center considerations dates back to September 2025, when Statesboro and Bulloch County government representatives met with the Development Authority of Bulloch County (DABC) to learn more about the industry. This led to a staff report, a council-directed tour of data centers in Social Circle and Alpharetta, and a meeting with Georgia Power staff in January. Subsequently, on June 2, the council enacted an ordinance prohibiting "hyperscale" data centers within city limits, capping sites at 50 acres, and establishing requirements for special-use permits. The proposed data center site was initially considered for high-density housing but was re-evaluated by developers due to a potential surplus of housing units in the region.