Data center updates: What state laws, zoning changes could mean for Davie County
Davie County, North Carolina, recently enacted a one-year moratorium on data center development on county land as residents express opposition despite no formal proposals. The county's planning director is also closely watching State Bill 730, a proposed state law aiming to define and regulate data centers, which could simplify local governance on these projects. While the county has its moratorium, municipalities like Mocksville retain independent zoning authority.
Johnny Easter, Director of Davie County Planning and Development Services, is navigating the complexities of integrating data centers into existing zoning ordinances for Davie County and Mocksville, North Carolina. Although data centers are new to the area, Easter and his department are actively researching their benefits and potential impacts, aiming to establish clear definitions and conditions within local zoning.
Despite the absence of formal data center proposals in Davie County, local residents have already voiced opposition to elected officials. This led the Davie County Board of Commissioners to pass a one-year moratorium on data center development on county land, effective until July 5, 2027. However, municipalities like Mocksville retain the power to approve or deny projects within their city limits, facing a dilemma between potential tax revenue and resident concerns over pollution and quality of life.
The town and county's control over such developments is limited, particularly concerning power usage, which is regulated at the state level between utility companies and developers. Local authority primarily applies when a zoning change is requested or when a project requires significant water and sewer infrastructure, necessitating a review of current capacity and potential developer-funded improvements.
Both local and state entities are monitoring North Carolina State Bill 730, known as the Ratepayer Protection Act. This legislation, which has passed a second reading in the Senate but not yet voted on in the House, aims to legally define data centers and address public concerns. Its provisions include regulating water and electricity use, preventing unreasonable costs to ratepayers, requiring developers to fund their own infrastructure, and mandating noise and environmental studies. Easter believes that if passed, this bill would provide a crucial baseline for local design standards and simplify the regulatory process for data centers across the state.
Neighboring counties are also grappling with similar issues, with examples like the Drox Group's proposal in Forsyth County, Compass Datacenters' approved project in Iredell County, and a withdrawn proposal by Tract in Mooresville due to community pushback. Rowan County has also enacted a moratorium, while Davidson and Yadkin counties are considering their own ordinances.