After rejecting one data center, Forsyth County confronts a harder question: What can it regulate?
Forsyth County is grappling with its regulatory power over data centers after rejecting a major project, "Project Iron Spur." County staff indicates that existing zoning allows data centers "by right" in many areas, and state law significantly limits the county's ability to impose new restrictions without property owner consent. This legal constraint forces commissioners to explore alternative ways to manage the impacts of data center development, including demands on electricity and water infrastructure.
Forsyth County commissioners are confronting significant legal limitations on their ability to regulate data center development, following their July rejection of the "Project Iron Spur" data center near Rural Hall. County staff presentations indicate that data centers are already permitted "by right" in many nonresidential zoning districts, allowing administrative approval by planning staff without a discretionary vote from elected officials.
North Carolina state law prohibits local governments from down-zoning property without owner consent, meaning the county may not be able to simply remove data centers as a permitted use. This constraint forces commissioners to consider alternative regulatory measures, such as addressing operational impacts like noise, backup generators, and cooling systems. They are also exploring whether utility reviews should establish clearer thresholds before site commitments or if state law changes should be pursued.
Data centers pose substantial infrastructure challenges, including high demands on electricity and water. Duke Energy has informed the county about sharply rising electricity demand in the Carolinas from large industrial users and data centers. The Winston-Salem/Forsyth County water system, while having sufficient overall capacity, could face concentrated demand from a large data center, potentially requiring costly upgrades to local pipes and infrastructure. Wastewater management also presents regulatory complexities, as data centers could qualify as Significant Industrial Users under local sewer policies.