New Hanover County is exploring increased regulations on data centers as the controversial facilities drive development conversations nationwide.
At an agenda review meeting on Sept. 17, county Planning and Land Use Director Rebekah Roth presented the Board of Commissioners with the county’s current policies related to data centers. While data centers are not new, Roth noted that the conversation around the facilities has shifted as high impact services such as artificial intelligence and working from home become more prevalent.
The impacts stretch far beyond the traffic and aesthetic concerns that the board typically hears from residents.
“It’s difficult to really have a conversation about the impacts of these types of uses, because a lot of depends
not just on the way it is sited on a particular piece of property or about the way that it actually functions, but about some of the mechanic, power and even environmental impacts that come based on the actual individual data center itself,” Roth said.
Among the impacts, Roth listed energy demand, water use for cooling strategies, noise due to cooling equipment or energy sources, land footprint and localized heat impacts.
In the county’s Unified Development Ordinance, data centers are classified as an industrial use. The county does not have regulations specifically geared at data centers, though a number of regular development standards would apply. Parking requirements, tree retention, landscaping, exterior lighting, conservation, stormwater and height restrictions are among the applicable standards.
The county’s standards do not address energy demands, water usage or noise that are most frequently cited by opponents.
Where data centers could be built in New Hanover
Under the current regulations, data centers would be allowed in four zoning districts across New Hanover: commercial services, airport commerce, light industrial and heavy industrial.
Only a small portion of the county’s vacant land fits the definition, largely clustered along Holly Shelter Road in Castle Hayne and around U.S. 421. However, Roth noted that a variety of factors including size requirements and flooding could create hurdles for hyperscale facilities.
The largest available parcel is in the 6700 block of Holly Shelter Road and is owned by Sidbury Land & Timber LLC. The second largest is near Sutton Lake on land owned by Duke Energy.
What comes next
County Manager Chris Coudriet said that the county does not have the authority to ban large data centers outright but noted that moving the use type to a special use permit would give commissioners more oversight in the process.
Vice Chair Dane Scalise pointed to a variety of factors that would make New Hanover an unlikely candidate for hyperscale data center. With a land mass of 192 square miles, New Hanover is the second smallest county in the state.
“We’re right by the ocean, we don’t really have a lot of available land, the land that we have is pretty darn expensive,” Scalise said. “We also have concerns with the interbasin negotiations upstream, whether or not we’re even going to have enough water for our own needs here. Is this even a practical place for a data center to come?”
Roth said that available energy and power grids largely drive hyperscale data center proposals. However, the county is more likely to see proposals for modest-sized centers that offer more localized services.
In response to a question from Scalise, Roth said that the county could increase commissioner power surrounding data center approval prior to an application being submitted.
Scalise said that he would “hate for our hands to be bound and unable to take any sort of action that is appropriate for our community” by a by-right proposal.
“If there’s an application that’s put on the table and we’re not prepared for it, that’s a problem,” Chair LeAnn Pierce said.
Commissioner Rob Zapple referenced cases where data centers have contracts that prioritize the facility’s power access over residents, an issue that he would like to be addressed by the UDO.
Commissioner Bill Rivenbark said that a data center would “solve every problem” related to traditional development concerns including traffic, as the facilities do not require large staffs. He referenced the county’s future Holly Shelter Business Park, though he clarified that he was not suggesting that the property be used for a data center.
Daniel Sheehan covers New Hanover County for the StarNews. Reach him at dsheehan@usatodayco.com.
This article originally appeared on Wilmington StarNews: New Hanover is bracing for data centers. Here's where they could be built.
