On the agenda: Aberdeen August 31, 2026 - Agenda for Special City Council Meeting at 5:30 P.M. — DATA CENTER (Aug 31)

NOTICE OF SPECIAL MEETING
City of Aberdeen Council Agenda
Special Meeting as Called by the Mayor
Monday, August 31, 2026, at 5:30 p.m.
City Council Chambers
123 South Lincoln Street
Aberdeen, South Dakota 57401

1.

ROLL CALL

2.

PLEDGE OF ALLEGIANCE

3.

OPEN FORUM

4.

NEW BUSINESS
A.

5.

INPUT FROM BUSINESS INTERESTS ON A POTENTIAL
ORDINANCE REGARDING DATA CENTERS.

ADJOURN

• Open Forum: Open forum provides an opportunity for the public to address the city council with
questions, concerns, or comments on items which are not on the agenda. Citizens are asked to sign up to
speak prior to the open forum portion of the meeting. The open forum will be limited to ten (10) minutes.
If no one is in attendance for the open forum, the special meeting may begin, unless a majority of the city
council agrees to extend the time period. The open forum may not be used to make personal attacks, to air
personal grievances, to make political endorsements, or for political campaign purposes. The open forum
will not be used as a time for problem solving or reacting to the comments made, but rather for hearing
the citizen for informational purposes. The city council may respond with a request for city staff to follow
up and report back on any issue raised during the public address time. A presentation may not exceed
three (3) minutes in duration.
• ADA Compliance: The City of Aberdeen fully subscribes to the provisions of the Americans with
Disabilities Act. If you desire to attend this public meeting and are in need of special accommodation(s),
please notify the City Finance Office at least eight (8) hours prior to the meeting so appropriate auxiliary
aids and services can be made available.
• Agenda Packet: A copy of the subject matter on the city council meeting agenda is available for public
distribution at the City Finance Office and available on the city’s website at www.aberdeen.sd.us.

City of Aberdeen Council Agenda
August 31, 2026 - Special Meeting

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City of Aberdeen
Council Agenda Memo

Agenda Item 4A

Meeting Date:

8/31/2026
(Special)

Department:

City Council

Agenda Section:

New Business

Presented by:

City Council

Attachments:

4

Res./Ord. Number:

Agenda Item Title:
Discussion with business organizations and interests.
Proposed or Possible Action:
Discussion by the City Council with business organizations and related commercial
interests regarding a potential ordinance limiting, prohibiting, or otherwise regulating the
construction, development, or operation of data centers.
Overview:
The City’s current zoning regulations do not adequately address the unique needs and
impacts on the community by the potential construction or operation of data centers, nor
do they provide guidance to City officials in assessing data center building permit
applications. This is the second of three informational meetings conducted by the City
Council to assist it in drafting and referring to the Planning Commission an ordinance
limiting, prohibiting, or regulating data centers within the city limits.
Aberdeen business interests led by the Aberdeen Development Corporation and Chamber
of Commerce will have an opportunity to provide information regarding data centers to the
Council at this special meeting.
The first informational meeting was held by the Council at its regular meeting on August
17th. Scott Sandal, a data center developer and software consultant from Lennox, SD,
Michael Feinblatt, an acoustical engineer and environmental professional, Chris Nelson, a
member of the PUC, Tom Glanzer and Ryan Kimnitz, with NorthWestern Energy, and
Mark Lapka, Senator of District 23 and a sponsor of SB135, the “Data Center Bill of Rights
for Citizens”, provided information and answered questions from councilmembers
regarding the construction, development, or operation of data centers.
A third informational meeting will give the Council an opportunity to hear from the general
public regarding data centers. The special meeting will be at 5:30 p.m. on September 14th

City of Aberdeen Council Agenda
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at 5:30 p.m. at a venue able to accommodate a large number of speakers and attendees.
The Mayor will announce the location of the special meeting at a later date.
Financial Consideration:
Attachments:
1.
“Data Center Bill of Rights for Citizens” at SDCL Ch. 49-50
2.
General information regarding data centers provided to the City Council by Tim
Hanigan, Chief Executive Officer of the Aberdeen Development Corporation
3.
Paper entitled “Understanding Noise and Vibration in Data Center Development
and Operations” by Feinblatt & Proko, issued 6-26-2026
4.
SD DANR – General Permitting Information for Data Centers

City of Aberdeen Council Agenda
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7/2/26, 1:43 PM

SDLRC - Codified Law 49-50 - DATA CENTER BILL OF RIGHTS

CHA PTER 49-50
DATA CENTER BILL OF RIGHTS
49-50-1 Definition of data center.
49-50-2 Electricity--Separate service terms and conditions.
49-50-3 Construction, development, and operation--Local authority to regulate--State preemption prohibited.
49-50-4 Water--Projected consumption--Notice to providers--Compatibility determination--Board statement-­
Consumption limits.
49-50-5 Water--Report on water usage to board--Public record.

49-50-1. Definition of data center.
For purposes of this chapter, "data center" means a centralized repository for the dissemination,
management, processing, and storage of electronic data and information, with a peak demand of ten megawatts
or greater.
Source: SL 2026, ch 190, § 2.

49-50-2. Electricity--Separate service terms and conditions.
A provider of electricity shall establish and maintain separate terms and conditions for electric service
applicable to a data center. The terms and conditions must require that the data center reimburse any provider of
electricity for all costs fairly attributed to the data center for service demand and utility consumption, including
costs incurred to serve the data center if the data center departs the system or materially reduces its load.
Source: SL 2026, ch 190, § 3.

49-50-3. Construction, development, and operation--Local authority to regulate--State preemption
prohibited.
The state may not preempt or otherwise limit the authority of the governing body of a county,
municipality, or other political subdivision to adopt ordinances and resolutions limiting, prohibiting, or otherwise
regulating the construction, development, or operation of data centers.
Source: SL 2026, ch 190, § 4.

49-50-4. Water--Projected consumption--Notice to providers--Compatibility determination--Board
statement--Consumption limits.
Prior to commencing operation in this state, the operator of a data center shall provide notice of projected
water consumption to each local water provider in the area in which the data center is proposed to be located.
Each water provider receiving notice pursuant to this section shall determine whether the data center's projected
water consumption is compatible with the local water supply and issue that determination in writing to the
operator. The operator shall present a copy of each notice and determination to the Board of Water Management.
If the board receives a determination from each applicable water provider that the data center's projected
water consumption is compatible with the local water supply, the board must issue, to the operator and the
general public, a written statement that the operator has satisfied the requirements of this section.
Notwithstanding the board's issuance of a written statement pursuant to this section, the data center may
not consume an amount of the local water supply exceeding limits established by order of the board, after
allocation to residential and essential public services. In establishing allocation limits under this section, the
board shall seek to ensure water availability and prevent disproportionate use of water by data centers.

City of Aberdeen Council Agenda
August 31, 2026 - Special Meeting
https://sdlegislature.gov/api/Statutes/49-50.html?all=true

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7/2/26, 1:43 PM

SDLRC - Codified Law 49-50 - DATA CENTER BILL OF RIGHTS

Source: SL 2026, ch 190, § 5.

49-50-5. Water--Report on water usage to board--Public record.
The operator of a data center that is authorized to operate in this state pursuant to this chapter, shall, at
the time and in the manner prescribed by the Board of Water Management, submit to the board a semi-annual
report regarding the data center's water use. The report must contain average usage data and certify compliance
with this section. The board shall make the usage data contained in the report available to the public.
Source: SL 2026, ch 190, § 6.

City of Aberdeen Council Agenda
August 31, 2026 - Special Meeting
https://sdlegislature.gov/api/Statutes/49-50.html?all=true

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From: Tim Hanigan <[email protected]>
Sent: Friday, July 31, 2026 4:59 PM
To: Amber Schwab <[email protected]>
Cc: Dave McNeil <[email protected]>
Subject: FW: Next Tuesday's Session
Amber,
Here is a data dump.
Please pass this video on to everyone on the council. It explains what a data center is fairly
well. It gets a little bit heavy on the investment angle towards the end but it’s still a
worthwhile watch: https://www.youtube.com/watch?v=ckoi0RTEgcY
League of Cities in ND put out this model ordinance
Microsoft Word - Data Center Workgroup Model Ordinance.Final
Bismark, ND
Bismark, ND
Zoning and Guidelines | Bismarck, ND - Official Website
Gemini Rezoning in Sioux Falls:
PLANNING COMMISSION
Wisconsin Rapid, Wisconsin
MC-1415-Ordinance-Amendment---Data-Centers-PDF
Papillion, Nebraska
Article III: Use Types - City of Papillion, NE
(defines as a office uses permittable in their industrial zones)
The zoning overlays or special use districts has a lot of different information in it provided to
us by an industry consultant. A summary is:
This document is a research and drafting guide for creating a data center zoning overlay
or special-purpose district that allows qualifying data centers as a permitted, “by-right”
use.
The proposed approach would direct data centers into designated industrial or
employment areas where adequate power, transportation, fiber, and other infrastructure
are available. Projects meeting objective standards could receive administrative approval
without going through a special-use permit or repeated public hearings.
Typical eligibility criteria include:
• Industrial or employment base zoning

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Minimum parcel size
Available utility capacity
Access to arterial roads
Proximity to transmission infrastructure
Ability to meet defined performance standards
Main ordinance components
The document recommends organizing an ordinance into these sections:
1. Purpose and intent
2. Definitions
3. Overlay boundaries and applicability
4. Permitted and conditional uses
5. Development and design standards
6. Noise and generator regulations
7. Utility infrastructure standards
8. Water and sustainability requirements
9. Screening and landscaping
10. Administrative approval procedures
11. Enforcement and penalties
Data centers, colocation facilities, accessory substations, related battery storage, and
accessory offices could be permitted by right. Cryptocurrency mining and unusually large
fuel-storage facilities could require conditional-use approval.
Key performance standards
The document emphasizes regulating impacts that are unique to data centers rather than
treating them like ordinary warehouses.
Noise and generators
• Suggested limits of 65 dBA during the day and 55 dBA at night near residential
property
• Routine generator testing limited to weekdays between 9:00 a.m. and 5:00 p.m.
• Acoustic attenuation and emissions compliance
• Emergency generator operation exempted when necessary
Residential protections
• Landscaped setbacks commonly ranging from 50 to 100 feet
• Berms, opaque fencing, and evergreen screening
• Architectural façade requirements to reduce warehouse-like appearance
Mechanical equipment and lighting
• Screening of cooling systems, rooftop equipment, fuel tanks, and substations
• Fully shielded, downward-directed exterior lighting
• Placement of substations behind principal buildings when feasible
Water
Most talk about evaporating cooling but I think we should limit this to closed loop.
Utility coordination
Applicants would disclose and coordinate:
• Power demand and utility capacity
• Existing and proposed transmission facilities
•
•
•
•
•

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Substations
Easements and interconnection corridors
Fiber infrastructure
Redundant electrical feeds
Development process
The recommended process is:
1. Legislative designation of the overlay area
2. Administrative site-plan review
3. Utility coordination review
4. Building-permit issuance
The goal is to give developers a predictable entitlement pathway while preserving objective
protections for neighboring properties.
Jurisdictions referenced
The document identifies several approaches:
• Prince William County, Virginia: A formal Data Center Opportunity Zone Overlay
and one of the clearest true overlay models.
• Loudoun County, Virginia: By-right data centers in several industrial districts,
supported by extensive supplemental regulations.
• Douglas County, Georgia: A mapped data center overlay emphasizing setbacks,
utility access, screening, and generator standards.
• Mesa, Arizona: Employment and industrial districts integrated with water, power,
and utility planning.
• Elk Grove Village, Illinois: Industrial standards addressing substations, cooling
systems, redundant utilities, and equipment screening.
• Hillsboro, Oregon: Technology and industrial districts aligned with semiconductor
and digital-infrastructure development.
• Altoona, Iowa: Campus-oriented provisions intended for hyperscale development.
• Papillion, Nebraska; Garland and Round Rock, Texas; Goodyear, Arizona; and
Coweta County, Georgia: Additional examples of expressly allowing or classifying
data centers in industrial or technology-oriented districts.
•
•
•
•

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A PRIMER FOR LOCAL GOVERNMENTS:

UNDERSTANDING
DATA CENTERS
What is a Data Center?
Data centers are facilities that provide critical
infrastructure to power modern digital services.
There are different types of data centers, often
shaped by the primary function(s) of the facility.
Most data centers house servers (connected
computers) and data storage systems capable
of vast numbers of calculations and computing
applications. Often referred to as “the cloud,”
data centers provide the necessary hardware
for internet connectivity, large scale software
systems, and the computational demands of
traditional and generative artificial
intelligence (AI).

Why Talk about
Data Centers?
Significant increases in the use of AI, and to
a lesser extent, cloud computing and other
City of Aberdeen Council Agenda
August 31, 2026 - Special Meeting

digital services, is driving greater demand for
the physical infrastructure that supports these
services and technologies. Data centers are
the unseen backbone of our digital economy,
yet their presence and impacts, both positive
and negative, are often overlooked in local
governance discussions. In fact, data center
facilities can provide significant benefits for
communities, including tax revenue, enhanced
digital connectivity and new jobs, but also
present challenges such as increased
energy demand, water usage and land
use considerations.
Local leaders can take a proactive approach to
planning data center development by addressing
sustainability, zoning and infrastructure concerns
to shape these facilities so that they are designed
and operated to best serve community interests.
This fact sheet outlines basic elements of
data centers to help policymakers begin
these discussions.
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Types of Data Centers
Enterprise & Internal Data Centers
Privately owned and operated, these facilities
manage proprietary information technology
(IT). The average on-site data center typically
houses between 2,000 and 5,000 servers on a
site ranging from 20,000 to 100,000 square feet.
They draw around 100 megawatts (MW)
of power.1
Colocation Centers
These third-party facilities lease out space,
power and cooling infrastructure to multiple
organizations. Businesses use these centers to
reduce infrastructure costs.2
Hyperscale Data Centers
Built by major technology companies such as
Amazon, Google and Microsoft, these large-scale
centers handle enormous computing demands,
including AI and cloud services. A hyperscale
data center is defined as containing at least
5,000 servers, occupying at least 10,000 square
feet of physical space and having an energy draw
of over 100 MW of power.3

Design Features of
Data Centers

Components of Data Centers
Data centers consist of several critical components that ensure efficient operation and reliability.

Data centers are typically located near necessary
infrastructure like high-voltage power lines and
high-speed fiber optic networks. They can also
require substantial land use. This means you can
often find data centers in suburban or rural areas,
or industrial zones, where these needs can be
met. In addition to proximity to power sources,
proximity to end-users helps reduce delays in
data transfer and can improve the speed of cloud
and AI-powered service delivery. Climate can
be another influential factor for the location of
data centers. Because servers require cooling,
differences in environment can increase the
strain on air-conditioning or water-based
cooling systems.
In terms of their appearance, data centers tend
to resemble warehouses4 — large and windowless
— to support a highly controlled environment
optimized for equipment performance, energy
efficiency, and physical security. Flat roofs are
common and necessary for housing mechanical
equipment like HVAC units, but also offer
opportunities for sustainability features such
as solar panels or reflective coatings. While
functional needs inform design choices, local
leaders can consider the impact these facilities
have on the character of their community.

2
3

1

Servers
The backbone of data processing and
storage, servers are computers
connected together to run applications
and computing tasks.

2 Storage Systems

3 Networking Equipment

Includes routers, switches and firewalls that
manage data traffic and security.

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5
6

Source: https://datacenteruniversity.be/whats-inside-a-data-center. To view this interactive graphic visit
the Data Center University website.

Data centers house vast amounts of digital
information, stored on solid-state drives or
hard disk drives.

2 | A PRIMER FOR LOCAL GOVERNMENTS: UNDERSTANDING DATA CENTERS

4

1

Cooling Systems
4 Prevent
overheating by using air or liquid
cooling methods to maintain optimal
operating temperatures for computers.

Power Infrastructure
5 Includes
backup generators and
uninterruptible power supplies to ensure
continuous operation.

Systems
6 Security
Physical and cyber security measures such
as biometric access controls, surveillance
cameras and fire suppression systems.

NATIONAL LEAGUE OF CITIES | 3
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7

Growth and Impact of Data Centers
USA Data Centers

Preparing for
the Future
As digital infrastructure continues to expand
to accommodate demand, city leaders are
increasingly likely to encounter proposals
for new data center development. Local

leaders may need to coordinate with state
regulators, utilities and tech companies when
considering data center development. Additional
considerations for city leaders include looking
at the environmental impacts of data centers, as
well as zoning, permitting and integration into
community development plans.

Endnotes
1

IBM. (2024, March 21). What is a hyperscale data center? https://www.ibm.com/think/topics/hyperscale-datacenter#:~:text=Hyperscale%20data%20centers%3A%20The%20IDC,Energy%20draw%3A%20Over%20100MW

2

Miet, H. (2024). Local Guidelines for Data Center Development. Urban Land Institute. https://knowledge.
uli.org/-/media/files/research-reports/2024/uli-data-center-whitepaper_hm_2024-11-12_final-final-round.
pdf?rev=940681fe19a247739647418d4f469d86&hash=91D3EEEC1C7EB7F5E92C0945DEA97973

3

IBM. (2024, March 21). What is a hyperscale data center?

4

https://research.google/pubs/the-datacenter-as-a-computer-an-introduction-to-the-design-of-warehouse-scale-machinessecond-edition/

5

Srivathsan, B., et al. (2024, October 29). AI power: Expanding data center capacity to meet growing demand. McKinsey.
https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ai-power-expanding-datacenter-capacity-to-meet-growing-demand

6

Ibid.

7

Synergy Research Group. (2025, March 19). Hyperscale Data Center Count Hits 1,136; Average Size Increases; US Accounts
for 54% of Total Capacity. https://www.srgresearch.com/articles/hyperscale-data-center-count-hits-1136-average-sizeincreases-us-accounts-for-54-of-total-capacity

8

U.S. Energy Information Administration. (n.d.). Electricity Data Browser. https://www.eia.gov/electricity/data/browser/

Source: https://www.datacentermap.com/usa. To view the interactive map, visit the USA Data Center website.

Global demand for data center capacity is
expected to surge, driven largely by the rapid
growth of AI workloads. Demand for AI-capable
data centers — which need more computing
power and energy — is expected to rise sharply.
Demand could grow by 22 percent annually,
potentially reaching an energy demand of 219
gigawatts (GW) in 2030 compared to 60 GW
in 2024. By 2030, 70 percent of all data center
needs could be tied to supporting advanced AI
applications and use cases.5 Innovation in cooling
technologies, energy efficiency, AI algorithms
and semiconductor design could alter
current projects.

The global data center industry is projected to
grow from $269 billion in 2025 to more than
$580 billion by 2032, with an annual growth
rate of 11.7 percent.6 There are more than 3,000
data centers in the U.S. It is estimated that of the
roughly 1,100 hyperscale data centers globally,
over half are located in the U.S. as of late 2024.7
There is a growing strain on infrastructure as
AI-driven demand accelerates. Within the U.S.,
states like Virginia and Texas are seeing the
fastest growth in data center construction.
These same states are also experiencing some
of the sharpest increases in commercial energy
consumption.8

4 | A PRIMER FOR LOCAL GOVERNMENTS: UNDERSTANDING DATA CENTERS
City of Aberdeen Council Agenda
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Data Centers and
Environmental
Considerations
Introduction
As the use of artificial intelligence (AI), cloud
computing and other digital services expand,
so too does the environmental footprint of the
infrastructure powering them. The data centers
that power these tools require significant
amounts of electricity and water, and local
governments increasingly face challenges
related to siting, infrastructure strain and
meeting climate and sustainability goals. This
fact sheet examines the links between data
centers and resource use, and outlines strategies
city leaders might consider when planning for
data center development and operation in their
communities.

Why Do Hyperscale
Data Centers Use So
Much Energy?
Data centers operate around the clock to
meet digital demands for speed, reliability and
processing power. Electricity not only powers
the servers within data centers that bring
digital services online, but also the systems that
provide cooling and operational redundancy.
Electrical systems ensure that servers remain
available and able to quickly move data
between users and the cloud, especially for
services that support AI applications and realtime data processing.
A key driver of rising energy demand is the
growing use of generative AI. Training and
running large language models (LLMs) required
by popular services, like ChatGPT and Claude,

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Energy Consumption
Trends and Impacts
In 2023, U.S. data centers consumed an
estimated 176 terawatt-hours (TWh) of
electricity — more than the annual consumption
of the entire state of New Jersey.1 Data centers
accounted for roughly 4 percent of U.S.
electricity demand, a figure projected to rise to
6 to 12 percent by 2028.2 This demand surge
is a key factor behind the projected national
electricity consumption increases of 15 to 20
percent over the next decade.3
The environmental and infrastructure impacts
of this rise in electricity demand are substantial.
Hyperscale data centers operated by major tech
firms and colocation data centers that provide
shared spaces to house servers from multiple
individual companies can strain regional power
grids, raising electricity prices for ratepayers.4
If the electricity source for the data centers
is powered by fossil fuels, these facilities may
contribute to climate change and air pollution,
either locally or at remote generation sites.
While some hyperscale operators, like Amazon
and Microsoft, have committed to renewable
energy and carbon neutrality, many smaller
facilities lack the capital to pursue similar
strategies.5 Some communities have also raised
concerns about the noise pollution from cooling
fans. Also, backup generators, necessary for grid
load reduction during high demand periods, can
emit large amounts of nitrogen oxides and other
air pollutants that can pose respiratory health
risks, particularly for vulnerable populations.6

City of Aberdeen Council Agenda
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Cooling and Water Use
Data centers require power for both computing
operations and cooling systems, as computers
generate significant heat and must be cooled
to function efficiently. In many facilities today,
cooling accounts for over 40 percent of
electricity consumption.7 Common cooling
technologies can also require water, which is
used in two main ways: evaporative cooling,
which consumes water without recovery, and
non-evaporative cooling, which typically uses
more electricity, but less water. In addition, data
centers also use water indirectly for generating
electricity, particularly from thermoelectric and
hydropower sources.
Training and running large AI models requires
substantial amounts of water. One major AI
company reported consuming over 20 billion
liters of water per year, for cooling servers
and generating electricity on site.8 By 2027,
global AI systems could withdraw more water
annually than several small countries combined.9
Most of this water is used behind the scenes
in data centers and power plants that provide
electricity to data centers, and some is
permanently lost through evaporation. Where
and when AI models are trained matters: hotter
regions and peak daytime hours increase water
use.10 Despite this, AI companies rarely report
their water consumption, focusing instead on
carbon emissions.

Sustainability and
Innovation Strategies
Proven and promising new strategies are
available to mitigate the environmental
impact of data centers. Closed-loop cooling
systems recycle water rather than drawing
it continuously, reducing the amount of
“consumed” water. Immersion cooling
submerges servers in fluid to improve heat
transfer and energy efficiency. Moreover, data
centers can be placed underground or other
naturally cool environments to take advantage
of ambient cooling. Companies are also testing
non-potable water systems to reduce pressure
on municipal drinking water supplies.
Data centers can be colocated with renewable
energy sources to reduce their environmental
footprint and the burden on the grid, potentially
protecting neighboring customers from
incurring additional electricity costs.13
Research and innovation in cooling
technologies, energy efficiency, AI algorithms
and semiconductor design could result in future
data center technologies that use less energy
and water.

Conclusion
Local governments can play a critical role
in shaping the sustainability of data center
development and operation. Especially in
regions facing water scarcity or energy grid
constraints, city leaders can use their authority
to guide where and how data centers are built
through zoning reviews, infrastructure planning,
resource reporting standards and utility
coordination. By setting expectations for energy
and water efficiency and air pollutant emission
standards, municipalities can ensure these
facilities align with local priorities and long-term
resilience goals.
An upcoming resource on data centers will
delve further into land use and planning
considerations associated with data centers. It
will offer guidance on zoning challenges and
how cities, towns and villages can approach
data center development and operation to
support local interests and protect community
health and well-being.

High water demand can present challenges in
water stressed areas or where data centers rely
on potable water for cooling. According to one
major AI company, close to 80 percent of water
used for on-site cooling was potable water.11
According to Bloomberg, nearly two-thirds of
new U.S. data centers since 2022 are located in
high water-stress regions.12

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Endnotes
1

Department of Energy (DOE), Office of Cybersecurity, Energy Security, and Emergency
Response (CESER). (2021, March). State of New Jersey State Energy Risk Profile. https://www.
energy.gov/sites/default/files/2021-09/New%20Jersey%20Energy%20Sector%20Risk%20
Profile.pdf.

2

Shehabi, A. et al. (2024). 2024 United States Data Center Energy Usage Report. Lawrence
Berkeley National Laboratory, Berkeley, California. LBNL-2001637. https://doi.org/10.71468/
P1WC7Q.

3

Ibid.

4

Martin, E. & Peskoe, A. (2025, March). Extracting Profits from the Public: How Utility
Ratepayers Are Paying for Big Tech’s Power. Harvard Law School. https://eelp.law.harvard.edu/
wp-content/uploads/2025/03/Harvard-ELI-Extracting-Profits-from-the-Public.pdf.

5

Monserrate, Steven Gonzalez. (2022). The Cloud Is Material: On the Environmental Impacts
of Computation and Data Storage. MIT Case Studies in Social and Ethical Responsibilities of
Computing. https://doi.org/10.21428/2c646de5.031d4553.

6

State of Washington Department of Ecology https://ecology.wa.gov/air-climate/air-quality/
data-centers

7

Li, P. et al. (2025). Making AI Less “Thirsty”: Uncovering and Addressing the Secret Water
Footprint of AI Models. Communications of the ACM, 68(7), 54 – 61. https://dl.acm.org/
doi/10.1145/3724499.

8

Ibid.

9

Ibid.

10 Wu, Y., Hua, I., & Ding, Y. (2025). Not all water consumption is equal: A water stress weighted
metric for sustainable computing. ACM SIGENERGY Energy Informatics Review (EIR), 5(2).
https://arxiv.org/abs/2506.22773.
11

Google. (2024, July). 2024 Environmental Report. https://sustainability.google/reports/google2024-environmental-report/.

12 Nicoletti, L., Ma, M., & Bass, D. (2025, May 8). AI is Draining Water from Areas that Need it
Most. Bloomberg. https://www.bloomberg.com/graphics/2025-ai-impacts-data-centers-waterdata/.
13 Engel, A., Varadarajan, U., & Posner, D. (2025, Feb 20). How “Power Couples” Can Help the
United States Win the Global AI Race. RMI. https://rmi.org/how-power-couples-can-help-theunited-states-win-the-global-ai-race/.

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Community Strategies
to Address Data Center
Development and Operation
Overview

Zoning and Permitting

This fact sheet explores how local governments
can manage land use and the community
impacts of data center development and
operation. Building on insights about energy
and environmental considerations, it highlights
zoning ordinances, permitting strategies
and policy tools that help cities, towns and
villages guide data center siting while aligning
with economic, sustainability and community
development goals.

With the growth of artificial intelligence (AI)
and the need for more data centers, a common
challenge facing local governments is that
older zoning codes do not explicitly address
data centers. These facilities often fall between
classifications. This ambiguity can result in
case-by-case determinations and ad hoc
review processes. Zoning code typically allows
for specified development types through the
following: by right, by conditional use, or by
special exception.

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TABLE 1: ZONING CATEGORIES
ZONING APPROACH

FEATURES

By Right

Projects that meet all zoning requirements are allowed to proceed
without discretionary review or public hearings. Streamlined and
predictable process.

By Condition Use

By Special Exception

Projects may be allowed if they meet specific conditions set by the
zoning ordinance. Typically requires a public hearing and approval
from a zoning board or commission.
Projects not normally permitted under current zoning may be
approved if they meet certain criteria and do not adversely impact the
surrounding area. Usually involves a public hearing and discretionary
review.

Some local governments are adopting zoning
amendments to specifically address data
centers. For example, in Fairfax County, VA,
officials have updated their zoning ordinance
to define data centers and permit them byright in select industrial and commercial zones,
while introducing buffers, size thresholds, and
location restrictions to guide development away
from transit-oriented areas. Harrisonburg, VA
took a different approach by removing by-right
permissions and requiring special use permits
for data centers in industrial zones, enabling
more discretion in site selection and public
engagement.
Loudoun County, VA is considering shifting
from by-right permissions to a special exception
model for new data centers. Proposed
comprehensive plan changes would also limit
future data center development in designated
urban centers near transit.
Several local governments have used overlays,
which provide additional rules on top of existing
zoning regulations. Overlays can allow local
governments to exercise greater control over
where and how data centers are built. These
mechanisms often include supplemental

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requirements related to noise, aesthetics,
setbacks and environmental impact. Prince
William County, VA created multiple overlay
zones between 2016 and 2023, including the
“Digital Gateway” district. These zones impose
specific criteria, including 24-hour noise
limits and landscaping requirements, while
also enabling large-scale rezoning for data
center parks. Limerick Township, PA created a
data center overlay that requires compliance
with detailed standards for noise, woodland
preservation, water use and emergency access.
In Chandler, AZ, all new data centers must
now go through a public hearing process and
are restricted to specific districts. The city’s
ordinance requires detailed noise mitigation
studies and regulates generator testing
schedules to reduce disruptions.

Policy Tools and
Local Incentives

Some cities have adopted or explored energy
and water benchmarking requirements. In 2023,
Detroit, MI enacted an ordinance requiring large
commercial buildings to report annual energy
and water use. Similar policies exist in Chicago,
IL and Atlanta, GA forming part of a broader
trend toward transparency in high-resource-use
sectors.
Several jurisdictions have explored renewable
energy and water efficiency incentives tailored
to data centers. While some operators voluntarily
co-locate renewable energy, local governments
have begun facilitating this through streamlined
permitting and flexible zoning for on-site
generation.
In New Albany, OH, a large tax abatement
was paired with community benefits in a
development agreement for a data center.
In return for a 15-year, 100 percent property
tax abatement, the developer committed to
stormwater mitigation, scholarships for local
students and cultural programs.

Community
Engagement and
Placemaking
Community engagement should begin early,
before zoning changes are proposed or
negotiations with data center developers take
place. Proactive outreach to residents and
community-based organizations builds trust,
surfaces local priorities and creates opportunities
to align development with community goals.

Creative placemaking offers a useful framework
for engaging the public in data center planning
and ensuring these projects contribute positively
to the built environment. For example:
‹

Transforming required buffer zones into
public green spaces or walking trails that
benefit nearby neighborhoods.

‹

Using community-led design processes to
shape screening, signage or building facades
so they reflect local identity or cultural
themes.

‹

Developing public benefit agreements tied
to local education, job training or public
Wi-Fi access, co-designed with community
stakeholders.

In addition to public engagement, collaboration
with utilities and regional partners is essential.
‹

Work with energy and water utilities early in
the planning process to assess infrastructure
capacity and coordinate long-term
investments.

‹

Coordinate regionally with other
municipalities and public utility commissions
(PUCs) to address cumulative grid impacts,
resource availability and shared development
pressures.

By embedding engagement and collaboration
into the planning process, cities, towns and
villages can ensure data center development is
more responsive to local needs and contributes
to long-term community well-being.

Beyond zoning, local governments are
experimenting with policy tools to shape
the environmental footprint and community
contributions of large building projects.

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TABLE 2: HOW LOCAL GOVERNMENT’S ADDRESS DATA CENTERS
JURISDICTION

ZONING APPROACH

KEY FEATURES

Fairfax County, VA

By-right in high-intensity
zones with thresholds
and restrictions

Triggers special review above 40,000 sq ft
(commercial) or 80,000 sq ft (industrial);
prohibited within 1 mile of Metro stations;
performance standards for cooling and noise.

Harrisonburg, VA

Shifted from by-right to
special use permitting

Requires public hearings and city council
approval for data centers in industrial zones.

Prince William
County, VA

Data center overlay
zones

Includes Digital Gateway; applies 24-hour
noise limits, architectural screening, and
buffer standards.

Loudoun County, VA

Data center overlay
zones

Would require discretionary review for all
new facilities; restricts development in
transit zones.

Chandler, AZ

Data center overlay
zones

Requires public hearings, noise mitigation
studies, and generator use restrictions.

Mesa, AZ

Data center overlay
zones

Encourages clustering in advanced
manufacturing zone; requires infrastructure
capacity review and often includes design or
noise provisions in development agreements.

Additional Resources
‹

Urban Land Institute, Local Guidelines for Data Centers

‹

American Planning Association, Data Center primer for planners

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South Dakota Data Centers:
Separating Facts from Fiction
An easy-to-digest comparison between common misconceptions
and the reality of data centers in South Dakota, addressing
concerns and providing accurate information for local communities.

1

Jobs and Economic Impact
FICTION: "There are not very many jobs"

THE REALITY: 200 full-time, on-site workers
This is a significant number of jobs for rural Deuel County - enough to make a real
economic impact without overwhelming the local community. These are quality,
permanent positions that will strengthen the local economy.

2

Power Grid Reliability
FICTION: "Power outages will increase"

THE REALITY: Triple Protection System:
• MISO requires reliability studies and grid improvements
• The South Dakota Public Utilities Commission regulates utilities in state for rates and
reliability
• On-site backup generation allows the facility to be off grid if the grid needs it
The grid becomes more reliable, not less.

3

Noise Levels
FICTION: "Data centers sound like Niagara Falls"

THE REALITY: APLD has worked with communities in the past and is committed to
continuing to work with communities in the future to ensure that dB levels meet local
needs. Volume levels are regularly reduced to reasonable levels by distance, barriers,
and technology to make sure that neighbors are not unfairly burdened by noise.

4

Cyber Security
FICTION: "These facilities are a cyber security concern"

THE REALITY: Cyber security is a concern for all businesses. However, data centers
are equipped with layers of physical and digital security to protect them. Security
protocols are monitored closely with state of the art systems and highly trained staff.
Cyber security needs create a variety of new jobs in the community.

5

Energy Prices
FICTION: "Energy consumption will drive up prices"

THE REALITY: Proven Track Record in North Dakota:
APLD's Ellendale, ND project led to:
$5.4 million rate decrease for MDU's ND rate payers for APLD's 2023 activities
$14 million estimated rate decrease for APLD's 2024 activities
• Jamestown, ND consumers saw NO rate increases
• The South Dakota Public Utilities Commission ensures utility companies in South
Dakota provide safe and reliable services and that investor-owned utility companies
do so with just and reasonable rates.

6

Water Usage
FICTION: "Data centers use millions of gallons of water and will harm droughtstricken South Dakota"

THE REALITY: APLD's cold-climate design is different:
• Closed-loop cooling system recirculates water continuously - no water consumption
• Closed-loop cooling systems are filled with water trucked in from specialized
treatment facilities
• Water used only for: bathrooms, kitchens, equipment cleaning
• Maximum connection capacity: 10 gallons per minute (same as most houses)
• Actual usage will be even lower than the maximum capacity, estimated to be 2/3 of
one household's annual water consumption

7

Community Impact
FICTION: "Data centers will destroy our way of life"

THE REALITY: Low-Impact, High-Benefit Neighbors:
• Small land footprint with minimal environmental impact
• Would be the largest property and sales tax contributor in the county (likely one of
the largest in the state)
• Provides property tax relief for all South Dakota residents
• Supports funding for roads, schools, and essential services
Maximum economic benefit + Minimal community impact = Win-Win

The Bottom Line: APLD data centers represent responsible economic development: creating quality jobs, generating
substantial tax revenue, and supporting local communities while maintaining the highest standards for environmental
stewardship and community compatibility.
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Data Center Ordinance Draft
Section ____. Data Centers
A. Purpose and Intent
The purpose of this section is to establish reasonable, objective, and predictable standards
for the location, review, construction, and operation of data centers in order to protect
neighboring properties, ensure adequate utility service, maintain public safety, and provide
clear expectations for applicants seeking to develop data center facilities to encourage
investment in digital infrastructure and allow data centers as a permitted industrial use
It is the intent of this section to allow data centers as an appropriate industrial use within
the I-2 Industrial District, subject to reasonable standards addressing site design, noise,
low-frequency sound, generator testing, water use, utility infrastructure, and compatibility
with surrounding land uses.
B. Definitions
For purposes of this section, the following definitions shall apply:
Data Center means a facility or building used primarily for the storage, management,
processing, transmission, or distribution of digital data, including servers, computer
systems, telecommunications equipment, network equipment, cooling systems, backup
power systems, and related support infrastructure.
Associated Data Center Infrastructure means equipment, structures, and systems
accessory to a data center, including cooling equipment, air-handling equipment,
transformers, substations, switchgear, backup generators, battery energy storage systems,
fuel storage, fencing, security systems, fiber infrastructure, and utility infrastructure
located on the same site or directly serving the data center.
Noise-Sensitive Use means an existing residential dwelling, school, hospital, nursing
facility, church, public park, or similar use where excessive noise may reasonably interfere
with normal use or occupancy.
Qualified Acoustical Engineer means a professional with demonstrated experience in
environmental noise measurement, acoustical modeling, low-frequency sound, industrial
mechanical noise, or similar acoustical analysis.
Nearest Existing Noise-Sensitive User Property Line means the property line of an
existing adjacent or nearby property where noise is received, including a residentially used
property or other noise-sensitive use.

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Professional Engineer is a licensed Qualified Hydrogeology/Civil Engineer, defined as a
professional with demonstrated experience in evaluating water resources, including
evaluating permissible water extraction/usage from area water resources.
C. Permitted Districts
Data centers are permitted uses in the I-2 Industrial District, subject to site-plan review
and the standards of this section.
Data centers, together with associated data center infrastructure, shall be considered a
compatible industrial use when located, designed, constructed, and operated in
accordance with this section.
D. Application Requirements
a. Building Code Compliance
An application for a data center shall include the following information, to the extent
applicable to the proposed facility:
Primary data processing and server equipment shall be located within an enclosed
building. Outdoor accessory infrastructure may be permitted as shown on the approved
site plan.
The Data Center, accessory structures and associated data center infrastructure shall
comply with applicable building, fire, electrical, mechanical, environmental, and safety
codes.
b. Environmental Controls
The facility shall comply with applicable building, fire, mechanical, electrical, life-safety
codes, and emissions in compliance with EPA discharge permits.
c. Utility Service Information
The applicant shall provide information describing the anticipated electric service needs,
water service needs, wastewater needs, and other utility requirements of the proposed
facility.
Approval of a data center may be conditioned upon the applicant providing a written “willserve” letter or similar confirmation from the applicable utility provider stating that
sufficient utility capacity is available or can reasonably be developed to serve the proposed
facility. Final interconnection agreements, service agreements, easements, and related
utility permits shall not be required prior to local zoning approval.

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At the time of application, the applicant shall provide documentation demonstrating that it
has consulted with the applicable electric utility regarding the facility’s anticipated peak
demand, proposed service requirements, and any generation, transmission, distribution,
substation, or other network improvements that may be necessary to serve the project.
Consistent with SDCL 49-50-2, as amended, and any successor or codified provisions,
electric service to a qualifying data center shall be subject to separate utility terms and
conditions requiring the data center to reimburse the electric utility for all costs fairly
attributable to the facility’s service demand and utility consumption, including applicable
infrastructure or network-upgrade costs and costs arising if the facility materially reduces
its load or discontinues service. Final interconnection or electric-service agreements shall
not be required as a condition of zoning approval but must be completed at the time
required by the applicable utility and before the facility commences operation.
E. Site Plan
The applicant shall submit a site plan showing the location of all buildings, outdoor
equipment, generators, substations, transformers, cooling equipment, battery storage
systems, fuel storage, loading areas, fencing, screening, access points, parking areas,
stormwater facilities, lighting and utility connections.
Associated data center infrastructure may be permitted as part of the approved site plan.
F. Backup Power and Generators
If emergency generators are proposed, the application shall identify their estimated
number, general location, fuel type, rated capacity, and anticipated testing and
maintenance schedule. Such generators shall be used solely during an interruption or
imminent interruption of utility service and for routine testing and maintenance, which
shall not exceed an aggregate of 24 hours per calendar year. Emergency generators shall
not be used for peak shaving, demand response, economic dispatch, avoidance of high
electricity prices, or routine grid support.
Routine generator testing shall be conducted in a manner that minimizes impact on
surrounding properties and complies with the generator testing requirements of this
section and will be conducted during reasonable daytime hours except where
manufacturer recommendations, utility coordination, emergency preparedness,
commissioning, or regulatory requirements necessitate otherwise.

G. Screening and Security

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Outdoor mechanical equipment, transformers, generators, cooling equipment, utility
infrastructure, and similar equipment shall be screened where from adjacent public rightsof-way and existing residentially used properties.
Screening may include fencing, walls, landscaping, berms, building orientation,
architectural screening, or other reasonable methods approved as part of the site plan.
Security fencing, controlled access gates, cameras, lighting, and similar protective
measures may be permitted as part of the approved site plan.
H. Emergency Response Information
The applicant shall provide information for emergency response planning, including
building access points, fire suppression systems, hazardous materials, battery storage
areas, fuel storage, emergency shutoff locations, utility disconnect locations, and site
contact information.
I. Noise Compliance Verification
At the time of application, the applicant shall provide information demonstrating that the
proposed data center is reasonably expected to comply with the noise standards set forth
in this section.
a. Verification may include one or more of the following:
i. professional noise modeling or a professional acoustical study;
ii. manufacturer specifications for outdoor equipment; or
iii. proposed operational controls or mitigation measures;
b. A professional noise study prepared by a qualified acoustical engineer shall
be required only when one or more of the following apply:
i. the proposed data center is located within 500 feet of an existing
residential dwelling, school, hospital, nursing facility, or similar noisesensitive use;
ii. the facility includes backup generation capacity greater than 10
megawatts and such generation equipment is located within 500 feet
of an existing residential dwelling or noise-sensitive use;
J. Noise Standards
a. General Noise Standard
All data centers shall comply with the applicable zoning district noise standards and the
additional standards of this section.

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Sound levels shall be measured from the nearest existing residential or noise-sensitive
receiving property line.
For purposes of review, the maximum sound level for normal continuous operation of the
data center shall not exceed 70 dBA at property lines adjacent to non-residential uses. This
standard shall apply to cooling equipment, mechanical equipment, transformers,
generators, substations, battery systems, and other related equipment associated with the
data center during normal continuous operation.
Temporary construction activity, bona fide emergency operations, and approved generator
testing shall be governed by the applicable provisions of this ordinance and not be subject
to normal continuous operation.
If the documented pre-construction ambient sound level at the nearest existing noisesensitive use property line already exceeds the applicable limit, the data center shall not
increase the existing ambient sound level by more than 5 dBA during normal continuous
operation, unless otherwise approved by the approving authority based on a professional
noise study.
b. Demonstration of Compliance
The applicant shall demonstrate that the operation of the data center, including cooling
equipment, mechanical equipment, transformers, generators, substations, battery
systems, and other related equipment, will comply with the applicable noise limits.
Compliance may be demonstrated through equipment specifications, site design,
professional modeling, comparable facility data, mitigation measures, or postconstruction testing, as determined by the approving authority.
c. Acoustical Study Requirements
The requirements of this subsection shall apply only when an existing noise-sensitive use
is located within 500 feet of the property line of the subject parcel.
Where such a noise-sensitive use is located within 500 feet of the property line of the
subject parcel, the applicant shall submit a professional acoustical study prepared by a
qualified acoustical engineer. The study shall include:
i. existing ambient sound levels at representative nearest existing noisesensitive use property and nearby noise-sensitive uses;
ii. projected operational sound levels during normal operation and
anticipated peak cooling conditions;

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iii. separate analysis of emergency generator testing, commissioning,
and maintenance activities when generators are within 500 feet of an
existing residential or noise-sensitive use property;
iv. A-weighted sound levels;
v. C-weighted analysis if the acoustical engineer identifies a likely lowfrequency concern
vi. G-weighted sound levels analysis if the acoustical engineer identifies
a likely infrasound concern;
vii. identification of any prominent tonal components, hum, rumble, or
low-frequency characteristics;
viii. proposed mitigation measures, if needed, including equipment
orientation, screening, enclosures, silencers, acoustic louvers, walls,
berms, setbacks, or operational controls; and
ix. certification that the facility, as designed, is expected to comply with
this section.
d. Low-Frequency Noise and Tonal Hum
Where an existing residential dwelling or other noise-sensitive use is located within 500
feet of the property line of the subject parcel, the facility shall be designed and operated to
comply with the applicable noise limits established in this section at the receiving property,
including any specified standards for tonal sound, low-frequency noise, or other
measurable sound characteristics.
If a qualified acoustical engineer determines, through a required acoustical study or postconstruction compliance testing, that a prominent tonal sound, hum, or low-frequency
noise is reasonably expected will exceed South Dakota industrial noise standards at the
property, the applicant or operator shall submit mitigation plan addressing the source of
the sound.
Mitigation may include equipment orientation, screening, enclosures, silencers, acoustic
louvers, walls, berms, setbacks, operational controls, or other reasonable methods
approved by the city.
K. Water Use and Cooling Systems
At the time of application, the applicant shall identify the proposed cooling system; the
proposed source of water; anticipated average daily, peak daily, and annual water demand;
anticipated wastewater or blowdown discharge; and all proposed water-conservation and
reuse measures.

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The facility shall utilize a closed-loop, non-once-through cooling system or an equivalent
low-water cooling technology. The approving authority may authorize an alternative cooling
system upon a determination, based on information prepared by a qualified design
professional, that the proposed system will achieve equivalent or greater water efficiency.
If water will be supplied by a municipal or rural water utility, the applicant shall provide
written confirmation that the utility has reviewed the facility’s anticipated water demand
and that sufficient capacity is available to serve the facility. Approval may be conditioned
upon the applicant obtaining all required service agreements and permits and paying the
costs of any infrastructure improvements attributable to the facility.
The applicant shall provide a study prepared by a Professional Engineer certifying that the
facility’s anticipated water demand can be supplied by the existing utility system or
applicable aquifer without materially impacting existing users. If the required water
capacity exceeds the utility’s approved capacity or applicable aquifer-withdrawal limits,
the applicant shall identify the additional infrastructure, permits, water rights, or mitigation
measures necessary to serve the facility.
Approval will be conditioned on the availability water capacity and the applicant obtaining
any required utility service agreements, infrastructure approvals, or permits. The approving
authority may require additional information to verify that the proposed facility does not
exceed available municipal water capacity or require unapproved public infrastructure
improvements, or impact existing agricultural uses
L. Noise Compliance Testing
Where a professional noise study is required under this section due to a proximity to an
existing residential dwelling or noise-sensitive use, or where the city has a reasonable basis
to verify compliance, the city may require acoustical compliance testing when
documented complaints or objective evidence indicates potential noncompliance..
The Noise Compliance testing and report shall be conducted and prepared by a qualified
acoustical engineer and shall evaluate actual sound levels during representative operating
conditions, including peak or near-peak cooling operation when practicable.
The city may require testing does not reflect representative operating conditions or
indicates potential noncompliance.
M. Corrective Action and Cure Period
If Noise Compliance testing or verified city review shows that the facility does not comply
with this section, the operator shall submit a corrective action plan within 45 days after
receiving written notice of noncompliance.

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The corrective action plan shall identify the source of the exceedance, proposed mitigation
measures, and a reasonable implementation schedule.
The operator shall be given a reasonable opportunity to cure any verified noncompliance,
provided that the operator is acting in good faith and the noncompliance does not create
an immediate threat to public health or safety.
The city may grant reasonable extensions where mitigation requires equipment
procurement, engineering redesign, construction, utility coordination, seasonal testing, or
other circumstances outside the operator’s reasonable control.
N. Emergency Operations
Noise limits in this section shall not apply during bona fide emergency operations,
including utility outages, grid emergencies, severe weather events, equipment failure, fire
response, public safety events, or other events requiring immediate action to protect life,
safety, property, equipment, or continuity of critical digital services.
The operator shall maintain records sufficient to document the date, duration, and general
reason for emergency generator operation and provide such records to the city upon
reasonable request.
O. Construction Noise
Temporary construction noise shall be governed by the city’s general construction noise
standards.
This section is intended to regulate long-term operational noise from the completed facility
and related equipment.
P. Changes After Approval
Minor changes to equipment, technology, site layout, mechanical systems, generators, or
utility infrastructure shall be approved administratively where the zoning administrator
determines that the change does not materially increase off-site impacts or create
noncompliance with this section.
A material change that substantially increases noise, water demand beyond approved
utility capacity, generator capacity, outdoor equipment impacts, or off-site impacts may
require additional review and approval by the city.

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Q. Administrative Flexibility
This section shall be administered in a manner that supports economic development,
technological investment, utility coordination, and reasonable protection of surrounding
properties.
Alternative compliance methods may be considered during application review, site-plan
review, construction, or operation.
The city may approve alternative compliance methods where the applicant demonstrates
that the alternative substantially meets the intent of this section.

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Zoning overlays or special-purpose districts that explicitly allow data centers as a
permitted or “by-right” use.
Common Components Found in Data Center Overlay Ordinances
Most modern ordinances include several recurring elements:
• Specific use definition
o Data center
o Server farm
o Colocation facility
o Mission critical facility
• By-right eligibility criteria
o Industrial or employment base zoning
o Minimum parcel size
o Utility capacity availability
o Transportation access
• Performance standards
o Generator noise limits
o Mechanical equipment screening
o Lighting controls
o Fuel storage
o Emissions compliance
o Water consumption or reuse requirements
• Design requirements
o Façade articulation
o Berms and landscaping
o Residential adjacency standards
o Height transitions
• Utility coordination
o Substation placement
o Transmission easements
o Fiber infrastructure
o Redundant feeds
Illustrative Ordinance Structure
Many jurisdictions organize the regulations in this format:
1. Purpose and intent
2. Definitions
3. Applicability and mapped overlay boundaries
4. Permitted uses
5. Development standards
6. Performance standards
7. Utility infrastructure standards
8. Administrative approval procedures
9. Exceptions or conditional-use triggers

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Virginia
Prince William County, VA — Data Center Opportunity Zone Overlay District (DCOZ)
This is one of the clearest examples of a true overlay specifically tailored to data centers.
Topics covered:
• By-right data center use in qualifying districts
• Buffers and setbacks
• Architectural treatment
• Noise standards
• Generator operation
• Transmission infrastructure
Code / ordinance resources:
• County code
portal: https://library.municode.com/va/prince_william_county/codes/code_of_ordi
nances
• Search terms within code:
o “Data Center Opportunity Zone Overlay”
o “DCOZ”
o “Data Center Uses”
Planning materials:
• https://www.pwcva.gov/department/planning-office/data-center-information
Loudoun County, VA
Loudoun regulates data centers extensively within industrial zoning districts and through
specific performance standards.
Code resources:
• https://library.municode.com/va/loudoun_county/codes/zoning_ordinance
• Search terms:
o “Data Center”
o “Commercial Data Center”
o “Supplementary Regulations”
Planning resources:
• https://www.loudoun.gov/datacenters
Georgia
Douglas County, GA — Data Center Overlay District
Douglas County adopted regulations targeted at large-scale data center campuses.
Code resources:
• https://library.municode.com/ga/douglas_county/codes/code_of_ordinances
• Search terms:
o “Data Center Overlay”
o “Mission Critical Facility”
o “Data Center Campus”

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Coweta County, GA
Coweta County adopted data-center-specific zoning amendments tied to industrial
districts.
Code resources:
• https://library.municode.com/ga/coweta_county/codes/code_of_ordinances
• Search:
o “Data center”
o “Technology campus”
Texas
City of Garland, TX — Technology / Data Center Standards
Garland has adopted provisions intended to facilitate hyperscale and colocation facilities.
Code resources:
• https://library.municode.com/tx/garland/codes/code_of_ordinances
• Search:
o “Data center”
o “Data processing”
o “Industrial district permitted uses”
Round Rock, TX
Round Rock has incorporated data center use classifications in employment and industrial
districts.
Code resources:
• https://library.municode.com/tx/round_rock/codes/code_of_ordinances
• Search:
o “Data center”
o “Electronic data facility”
Arizona
Mesa, AZ
Mesa has become a major data center market and adopted tailored standards.
Code resources:
• https://library.municode.com/az/mesa/codes/code_of_ordinances
• Search:
o “Data center”
o “Employment district”
o “Technology campus”
Economic development / planning:
• https://www.mesaaz.gov/business/economic-development
Goodyear, AZ
Goodyear adopted zoning amendments supporting large technology infrastructure users.
Code resources:
• https://library.municode.com/az/goodyear/codes/code_of_ordinances

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•

Search:
o “Data center”
o “High technology manufacturing”

Illinois
Elk Grove Village, IL
One of the more active suburban Chicago data center jurisdictions.
Code resources:
• https://library.municode.com/il/elk_grove_village/codes/code_of_ordinances
• Search:
o “Data center”
o “Data processing center”
o “Mission critical”
Oregon
Hillsboro, OR
Hillsboro’s industrial technology districts accommodate major digital infrastructure
facilities.
Code resources:
• https://library.municode.com/or/hillsboro/codes/code_of_ordinances
• Search:
o “Data processing”
o “Technology district”
o “Electronic equipment manufacturing”
Planning resources:
• https://www.hillsboro-oregon.gov
Iowa
Altoona, IA — Data Center Campus Regulations
Driven largely by hyperscale investment activity.
Code resources:
• https://codelibrary.amlegal.com/codes/altoonaia/latest/overview
• Search:
o “Data center”
o “Technology campus”
Nebraska
Papillion, NE
Papillion adopted provisions tied to data campuses and industrial technology uses.
Code resources:
• https://library.municode.com/ne/papillion/codes/code_of_ordinances
• Search:
o “Data center”
o “Technology park”
Comparative Matrix — Data Center Zoning Approaches

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Jurisdic
tion

Prince
William
County
, VA

Loudou
n
County
, VA

Mesa,
AZ

Zoning
Mechanism

ByRight
Status

Data Center
Opportunity
Zone Overlay
(DCOZ)

Yes in
qualif
ying
distric
ts

Industrial
districts +
supplemental
regs

Yes in
many
indust
rial
distric
ts

Employment/in
dustrial
districts with
tech standards

Dougla
s
County
, GA

Data Center
Overlay District

Elk
Grove
Village,
IL

Industrial tech
standards

City of Aberdeen Council Agenda
August 31, 2026 - Special Meeting

Yes

Yes

Yes

Overlay?

Key
Standard
s

Notable
Features

Yes

Noise,
buffering,
generator
s, façade
treatmen
t,
substatio
ns

One of the
clearest true
overlay
models

Limited/fun
ctional

Noise,
screening
,
transmis
sion
coordinat
ion

Mature
hyperscale
regulatory
environment

Partial

Water
use,
cooling
systems,
utility
coordinat
ion

Utilityintegrated
planning
approach

Yes

Setbacks
, utility
access,
screening
,
generator
s

Emerging
Southeast
model

No/limited

Electrical
infrastruc
ture,

Focus on
missioncritical
facilities

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Jurisdic
tion

Zoning
Mechanism

ByRight
Status

Key
Standard
s

Overlay?

Notable
Features

cooling
systems

Hillsbo
ro, OR

Altoon
a, IA

Garlan
d, TX

Technology/ind
ustrial districts

Technology
campus
provisions

Industrial
permitted-use
structure

Yes

Yes

Yes

No

Environm
ental +
utility
standard
s

Semiconduct
or/data
infrastructure
alignment

Limited

Campus
planning,
utility
coordinat
ion

Hyperscaleoriented
framework

No

Data
processi
ng facility
standard
s

Simplified
entitlement
pathway

Typical “By-Right” Use Table Language
Example Use Table
Use

LI Light
Industrial

GI General
Industrial

Tech
Overlay

Data Center

P

P

P

Colocation Facility

P

P

P

Cryptocurrency Mining

C

C

C

Electrical Substation Accessory
to Data Center

P

P

P

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Legend:
• P = Permitted by right
• C = Conditional use permit required
Model Definitions
Data Center
“A facility primarily used for the storage, management, processing, transmission, and
retrieval of digital data and information through computer servers, networking equipment,
and associated infrastructure, including cooling systems, backup power supplies, and
electrical substations.”
Colocation Facility
“A data center in which multiple customers lease space, power, cooling, or network
connectivity within a shared facility.”
Mission Critical Facility
“A facility containing operations or infrastructure essential to uninterrupted
communications, computing, financial, governmental, healthcare, or digital services.”
Model Overlay Ordinance Structure
Section 1 — Purpose and Intent
“The purpose of the Data Center Overlay District is to:
• Encourage investment in digital infrastructure;
• Direct high-intensity utility users to appropriate industrial locations;
• Minimize land-use conflicts;
• Establish objective development standards permitting administrative approval.”
Section 2 — Applicability
“The overlay district may be applied to properties:
• Zoned industrial or employment;
• Located within 1 mile of high-capacity transmission infrastructure;
• Served by arterial transportation facilities.”
Section 3 — Permitted Uses
Permitted by-right:
• Data centers
• Colocation facilities
• Accessory substations
• Battery energy storage associated with principal use
• Administrative offices accessory to data center operations
Conditional uses:
• Cryptocurrency mining
• Diesel fuel storage exceeding threshold quantities

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Sample Performance Standards
Noise
“Sound generated by mechanical equipment or backup generators shall not exceed:
• 65 dBA daytime
• 55 dBA nighttime measured at the property line adjacent to residential uses.”
Generator Testing
“Routine generator testing shall occur only between:
• 9:00 a.m. and 5:00 p.m.
• Monday through Friday except during emergencies.”
Mechanical Equipment Screening
“All rooftop mechanical equipment, cooling systems, and fuel tanks shall be screened
from public rights-of-way and residential properties.”
Lighting
“Exterior lighting shall be fully shielded and downward directed to minimize off-site glare.”
Water Use
“Projects utilizing evaporative cooling systems shall submit a water management plan
identifying:
• Projected annual water demand;
• Water recycling measures;
• Drought contingency procedures.”
Landscaping and Buffers
Typical standards:
• 50–100 ft landscaped setback adjacent to residential uses
• Berms or opaque fencing
• Evergreen screening
Utility Coordination Standards
Transmission Infrastructure
“Applicants shall identify:
• Existing transmission facilities;
• Proposed substations;
• Easement requirements;
• Utility interconnection corridors.”
Substation Standards
Typical provisions:
• Located behind principal structures where feasible
• Landscaped perimeter
• Architectural screening for visible equipment

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•

Security fencing requirements

Administrative Approval Framework
Typical Entitlement Process
1. Overlay designation (legislative action)
2. Administrative site plan review
3. Utility coordination review
4. Building permit issuance
Well-structured by-right ordinances avoid:
• Special-use permits
• Public hearings for compliant projects
• Discretionary architectural review
Best Practices Emerging Nationally
1. Separate Data Centers From Warehouses
Leading jurisdictions avoid classifying data centers as generic warehousing because:
• Utility impacts differ substantially
• Noise characteristics are unique
• Traffic patterns are lower
• Building massing differs
2. Address Backup Generators Explicitly
Most mature ordinances include:
• Testing-hour limits
• Emissions compliance
• Fuel storage standards
• Acoustic attenuation
3. Require Transition Standards Near Residential Areas
Common approaches:
• Larger setbacks
• Height step-downs
• Enhanced landscaping
• Façade articulation
4. Coordinate Utility Planning Early
Many jurisdictions now require:
• Preliminary utility availability review
• Power-demand disclosure
• Transmission planning coordination
5. Establish Water Management Standards
Especially common in western states:
• Water-use intensity disclosures

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•
•

Reclaimed water incentives
Cooling technology standards

1. Loudoun County, Virginia — Data Center Opportunity Zones / Industrial Districts
Loudoun County is one of the best-known examples because of the concentration of
hyperscale facilities in “Data Center Alley.”
Key zoning approach:
• Data centers are permitted by-right in several industrial zoning districts, including
PD-IP (Planned Development–Industrial Park) and GI (General Industrial).
• The county also established policy frameworks and utility coordination practices
that effectively function as targeted data center development areas.
• Supplemental performance standards address:
o Noise from backup generators and cooling equipment
o Building setbacks and screening
o Transmission infrastructure
o Architectural treatment adjacent to residential areas
o Fuel storage and emergency systems
Illustrative ordinance characteristics:
• “Data center” is specifically defined in the zoning ordinance.
• Treated separately from generic office or warehouse uses.
• Large floor area ratios and height allowances are accommodated.
• Extensive utility infrastructure is anticipated administratively rather than requiring
discretionary rezoning.
Reference:
• Loudoun County Zoning Ordinance, industrial use tables and data center
performance standards.
2. Prince William County, Virginia — Data Center Overlay District (DCO)
Prince William County adopted a formal Data Center Opportunity Zone Overlay / Data
Center Overlay framework.
Key features:
• Overlay applied to selected industrial and employment areas.
• Data centers permitted by-right when underlying zoning and overlay conditions are
satisfied.
• Overlay establishes additional requirements for:
o Landscaping buffers
o Architectural design
o Substation placement
o Noise attenuation
o Exterior lighting
o Generator testing hours
Notable aspect:

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The overlay separates data center regulation from conventional industrial standards
and creates use-specific criteria.
Typical overlay language topics:
• Definition of “server farm” or “data center”
• Maximum sound levels at property lines
• Screening of rooftop mechanical equipment
• Campus-style master planning
•

3. Mesa, Arizona — Data Center Overlay / Employment District Standards
Mesa has used technology and employment zoning districts to facilitate data center
growth.
Common ordinance elements:
• Data centers classified as permitted uses in employment and light industrial zones.
• Overlay-style utility coordination provisions tied to power and water infrastructure
planning.
• Design standards regulate:
o Water use
o Heat rejection equipment
o Security fencing
o Emergency power systems
o Truck circulation
Mesa’s approach is notable because:
• It integrates utility master planning into land-use administration.
• Expedited review pathways were created for qualifying technology campuses.
4. Hillsboro, Oregon — Station Community Industrial / Technology Districts
Hillsboro’s planning framework around the Silicon Forest includes provisions that support
large technology and data infrastructure facilities.
Relevant characteristics:
• Technology-related uses, including data processing and server operations, are
permitted outright in designated industrial and employment districts.
• Performance standards address:
o Energy infrastructure
o Noise
o Environmental impacts
o Campus buffering
Illustrative feature:
• Uses are tied to comprehensive planning objectives for semiconductor and digital
infrastructure industries.
5. Douglas County, Georgia — Data Center Overlay District
Several Georgia jurisdictions have recently adopted explicit data center overlays due to
regional growth.
Typical provisions include:

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Overlay district mapped near transmission corridors and interstate access.
Data centers permitted as-of-right subject to objective standards.
Ordinance language addresses:
o Minimum acreage
o Power availability
o Setbacks from residential uses
o Generator operation
o Architectural screening
o Stormwater and water reuse systems
This type of ordinance is increasingly common in fast-growing secondary data center
markets.
•
•
•

6. Elk Grove Village, Illinois — Technology / Industrial Overlay Standards
Industrial municipalities near Chicago have amended zoning codes to specifically
accommodate data centers.
Key elements:
• Data centers expressly listed as permitted industrial uses.
• Supplemental standards cover:
o Electrical substations
o Cooling towers
o Redundant utility systems
o Exterior equipment enclosures
o Security operations
Illustrative drafting pattern:
• “Data center” receives its own definition and supplemental use standards section
rather than being grouped under “communications” or “office.”

Example Ordinance Search References
Prince William County, VA
https://library.municode.com/va/prince_william_county/codes/code_of_ordinances
Loudoun County, VA
https://library.municode.com/va/loudoun_county/codes/zoning_ordinance
Mesa, AZ
https://library.municode.com/az/mesa/codes/code_of_ordinances
Douglas County, GA
https://library.municode.com/ga/douglas_county/codes/code_of_ordinances
Elk Grove Village, IL
https://library.municode.com/il/elk_grove_village/codes/code_of_ordinances

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Example Outline for a New Municipal Ordinance
Recommended Sections
1. Purpose and intent
2. Definitions
3. Overlay applicability map
4. Permitted uses
5. Development standards
6. Noise and generator regulations
7. Utility infrastructure standards
8. Water and sustainability requirements
9. Screening and landscaping
10. Administrative approval procedures
11. Enforcement and penalties
Emerging Trends (2024-era)
Increasingly Common
• Water-use disclosure requirements
• Restrictions on diesel generator emissions
• Architectural standards for hyperscale campuses
• Utility-capacity reservation procedures
• Renewable energy integration incentives
Less Common but Emerging
• Heat reuse requirements
• Carbon reporting
• AI/HPC power-density standards
• Grid stabilization obligations
• Battery storage integration mandates

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8/13/26, 10:27 AM

Understanding Noise and Vibration in Data Center Development and Operations

TRC is now a member of WSP. Learn more



 EN





B A C K TO H OM E

Understanding Noise and
Vibration in Data Center
Development and Operations

Authors: Michael Feinblatt & Morgan Proko | June 26, 2026

Mitigating Impacts So Noise Doesn’t Become
A Nuisance
As data center development accelerates, new facilities are increasingly sited near residential and commercial areas.
While these projects are essential to supporting cloud computing, AI, and digital connectivity, they also introduce
noise and vibration concerns that require careful management. Projects that integrate noise and vibration
assessments from the outset are better positioned to navigate permitting, minimize community impacts, and build
positive stakeholder relationships that help ensure long-term project success.

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Understanding Noise and Vibration in Data Center Development and Operations



Understanding The Nuances Of Noise
 EN
Around Data Centers



Behind every data center’s promise of connectivity and computing power is a 24/7 mechanical operation that, without
careful planning, can strain relationships with neighboring communities. Data centers occupy large footprints,
necessarily situated near critical power infrastructure, and depend on continuously operating cooling systems, air
handling equipment, and electrical generating equipment for both primary and backup power. The result is a
persistent noise environment that, left unaddressed, can become a source of community and regulatory concern.
The noise profile of a data center is more complex than just the magnitude of the sound it produces. Cooling towers,
chillers, rooftop HVAC units and electric generators each contribute distinct acoustic signatures. Controlling lowfrequency noise (the kind that travels through walls and is felt as much as heard) can be particularly challenging. Pure
tones generated by fans, compressors, and transformers can register as annoyances even at relatively low decibel
levels, since the human ear perceives tonal sounds as more intrusive than broadband noise at equivalent energy
levels.
These characteristics and concerns are increasingly drawing scrutiny from regulators. Many jurisdictions now apply
pure tone prohibitions and octave band frequency thresholds in addition to standard A-weighted equivalent sound
level decibel limits, and municipalities near major data center corridors have tightened local ordinances in direct
response to community concerns. Projects need to account for these nuances early to avoid delays and develop
relationships with the local community whose support is essential.

Best Practices For Navigating Noise And
Vibration
For energy and infrastructure projects, noise and vibration can be underestimated as sources of project risk. Waiting
too long to act could erode community support, cause permitting delays, or lead to costly redesigns or postconstruction retrofits. Understanding when such risk can affect the project’s schedule and viability, and how to
address it, is the foundation of a successful mitigation strategy.

Regulatory Compliance And Permitting
The regulatory landscape for data center noise is evolving rapidly. Beyond standard decibel limits, regulators
increasingly apply pure tone prohibitions, octave band frequency thresholds, stricter nighttime limits and receptorspecific analysis at the nearest sensitive uses rather than at the property boundary alone. Failing to account for any of
these criteria can result in permit denials or post-construction enforcement actions. Early engagement with the
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Understanding Noise and Vibration in Data Center Development and Operations

applicable regulatory agencies at the state, county, and municipal level is essential to understanding noise
compliance requirements for a given site.


 EN

Site Selection



Not all sites carry equal risk. Two parcels that appear equal from a land-use standpoint can present different noise
profiles depending on receptor proximity and sensitivity, prevailing wind patterns, existing background noise levels,
and the presence of intervening vegetation or topographic features. Conducting predictive noise modeling at the site
selection stage allows developers to compare candidate sites on a level acoustic playing field, identifying suitable
sites early and evaluating higher-risk options against the true cost of noise compliance before any commitment is
made. This analysis costs significantly less than the potential cost of project delays or redesigns that result from
responding to noise compliance issues after site selection is finalized.

Design And Engineering
Data centers generate noise from multiple source categories including mechanical cooling systems, electrical
infrastructure and power generating equipment, each potentially requiring a different mitigation approach. Conducting
predictive noise modeling during the design phase allows project development teams to predict potential impacts and
evaluate mitigation options before they become project constraints. Cooling equipment selection, generator
enclosures and exhaust silencers, vibration isolation for large rotating equipment and the careful design and
placement of sound barriers and acoustic enclosures can all help reduce a facility’s acoustic footprint. Engineering
controls are most cost efficient when designed from the start rather than when retrofitted after construction.

Community And Reputation
Community interest around data centers is increasingly organized, with residents and advocacy groups sharing noiserelated concerns throughout the project’s development and permitting phases. Because of this, early and sustained
community engagement is as important as any engineering control. Developers who share baseline data, describe
mitigation measures clearly and provide accessible points of contact consistently report smoother permitting
processes and fewer post-construction concerns. Building trust with surrounding communities is not a
communications exercise; it is an integral part of a project development strategy. When engineering is rigorous and
communication is transparent, both are strengthened.

R ELATED SERVIC ES
Environmental Assessment, Permitting & Compliance

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VIEW A LL SERVIC ES

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

 EN
Putting It All Together: TRC Can Help



Data center development moves fast, and not addressing noise and vibration challenges can slow it down
quickly, making early, experienced guidance a valuable investment. TRC brings decades of experience conducting
noise impact assessments across a wide range of industries, giving our team the depth to anticipate challenges
before they become obstacles.
TRC addresses data center development concerns through comprehensive noise and vibration analyses integrated
early into the project lifecycle. By identifying potential impacts before they become obstacles, we help clients make
informed decisions about site selection, facility layout, and mitigation design. Sound barriers, receptor-focused
planning and equipment selection are evaluated and optimized not just for regulatory compliance, but to foster the
community outcomes that keep data center development moving forward.
Whether you are in early planning or navigating a complex approval process, TRC’s noise and vibration specialists
are ready to help. Contact us to discuss your next data center project.

CONTACT US

Michael Feinblatt

Michael Feinblatt has more than 30 years of environmental consulting experience. He has provided
environmental consulting services and project management for a variety of energy infrastructure and
industrial facility projects, including power plants, solar farms, offshore wind farms, transmission
lines and substations, natural gas compressor stations, resource recovery facilities, hazardous
waste incinerators, pulp and paper mills, sugar mills, and asphalt plants, as well as at
semiconductor, coating, manufacturing, and chemical processing facilities. Michael has extensive

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local, state, and federal permitting experience for a variety of complex multi-disciplinary energy and
industrial infrastructure projects.


 EN



Morgan Proko

Morgan Proko is an environmental consultant with more than eight years of experience leading field
investigations and supporting other environmental projects. She has managed and contributed to a
wide range of efforts across the United States, with a primary focus on ambient noise studies in
various environments. Her work includes conducting field measurements and analyses of ambient
noise levels and preparing detailed technical reports and noise impact assessments for government
agencies, conservation organizations, and private clients. In addition to her noise study experience,
Ms. Proko’s technical capabilities include surface water quality monitoring, aquatic plant surveys,
stream geomorphology and hydrology investigations, sediment sampling, and bathymetric mapping.

+ 860-295-4161

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Windsor, CT 06095
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