This week’s Zoning In covers significant developments in data center regulations across multiple states. In Reno, the City Council overturned the Planning Commission’s initial rejection of the Oppidan Data Center, approving the project despite water and power availability concerns. The decision follows increasing scrutiny from local officials as Reno experiences a surge in data center applications.
Meanwhile, Stafford County narrowly voted against stricter zoning requirements for data centers, maintaining a by-right approval process that favors continued industry investment. In contrast, Loudoun County moved in the opposite direction, eliminating automatic approvals and requiring new projects to undergo public review. This shift could reshape the industry’s stronghold in Northern Virginia.
Across the country, regulatory and community pushback continues to grow. Indiana’s expanding data center sector faces resistance over land use and environmental concerns, while Georgia residents are mobilizing against a large-scale development in Bartow County. In Minnesota, an ethics complaint has been filed against Farmington city officials over transparency issues related to a proposed hyperscale data center.
Virginia’s power grid vulnerabilities were highlighted after a near-blackout event involving 60 data centers switching to backup generators, prompting new discussions about energy reliability. As state and local governments refine policies balancing economic incentives with infrastructure and environmental considerations, the evolving regulatory landscape will play a critical role in shaping the future of data center growth.
Reno City Council Approves Second North Valleys Data Center After Appeal
The Reno City Council unanimously overturned the planning commission’s denial of the Oppidan Data Center, approving the project next to the previously approved Webb Data Center in North Valleys. The commission had initially blocked the development due to concerns over water and power availability, but the developer demonstrated that NV Energy and the Truckee Meadows Water Authority had approved the necessary resources.
Despite concerns about the long-term impact on ratepayers, Councilmember Naomi Duerr and others supported the project after the developer agreed to address public concerns, including partial reliance on solar power and improved fencing aesthetics. Mayor Hillary Schieve expressed frustration over the rapid influx of data center applications, stating that three have been approved in just two months. The council plans to meet with the planning commission to discuss data center regulations further.
Stafford County Rejects Stricter Data Center Zoning in Close Vote
In a narrow 4-3 decision, the Stafford County Board of Supervisors rejected a proposed zoning amendment that would have required data center developers to obtain conditional-use permits (CUPs) for projects in heavy industrial zones. The decision maintains the current by-right development process, signaling the county’s continued support for data center investment. Proponents of the amendment argued that CUPs would provide greater oversight and community protections, while opponents, including Board Vice Chairwoman Tinesha Allen, emphasized economic development and the need to maintain strong business relationships. The decision follows a 4-2 Planning Commission recommendation in favor of the stricter regulations, highlighting the ongoing debate over data centers’ impact on local communities.
Read The Full Article at Fredericksburg Free Press
Loudoun County Reshapes Data Center Regulations
The Loudoun County Board of Supervisors has voted to overhaul data center regulations, eliminating by-right approvals and requiring new developments to undergo public scrutiny. The 7-2 vote reclassifies data centers as a “conditional use” in areas where they were previously permitted by right, meaning new projects must meet stricter criteria.
A separate 5-4 vote allowed grandfathering of applications submitted before Feb. 12, provided they are at least 500 feet from residential areas and remain largely unchanged. As a result, 24 projects were exempted from the new rules.
Proponents argue that the changes address community concerns about noise, aesthetics, and energy demand, while opponents warn of economic uncertainty and reduced business confidence. With data centers contributing 38% of Loudoun County’s general fund revenue, the decision signals a shift in balancing economic growth with public sentiment.
Read The Full Article at Virginia Business
Indiana’s Data Center Boom Sparks Local Concerns
Indiana’s data center industry is expanding rapidly, with 56 facilities statewide, including 23 in Indianapolis. However, as new projects emerge, community concerns about environmental and economic impacts are growing.
In Franklin Township, a proposed 500-acre data center project is facing scrutiny over potential tax abatements and their impact on local infrastructure. Meanwhile, in Pittsboro, a newly approved Vantage Data Centers project covering 285 acres drew criticism for rezoning farmland and bypassing public comments.
Residents worry about water usage, noise, and economic benefits not reaching their communities. While developers cite sustainability goals, experts stress the need for careful planning to balance growth with environmental responsibility.
Virginia’s Data Center Power Near-Miss Exposes Grid Vulnerabilities
Last summer, Northern Virginia narrowly avoided widespread blackouts when 60 data centers consuming 1,500MW of power simultaneously switched to backup generators due to a transmission line fault. The incident, revealed in regulatory filings and first reported by Reuters, forced grid operator PJM and Dominion Energy to quickly adjust power flow to prevent a surge that could have tripped the system.
The North American Electric Reliability Corporation (NERC) found that voltage fluctuations caused data centers in Fairfax County to transfer to backup power, but many did not automatically reconnect to the grid, requiring manual intervention. With Virginia’s data center energy demand surging—now at 40GW—NERC warns of potential future risks if large loads disconnect and reconnect unpredictably. A newly launched task force is studying the impact of such events on grid reliability.
Read The Full Article at Data Center Dynamics
Prince William County Targets Data Center Noise in Ordinance Update
Prince William County officials presented an update to the Board of County Supervisors on revising the county’s 30-year-old noise ordinance, with a strong focus on regulating data center noise. The proposed changes include adopting dBC measurement levels and octave band sound levels to better capture low-frequency noise, a key concern for nearby residents. The board is considering stricter compliance measures, requiring noise testing and modeling for certain projects. While most supervisors supported the changes, some cautioned against overregulation. Chair Deshundra Jefferson acknowledged the ongoing noise issues as a “collective failure” and emphasized the need for stronger oversight.
Read The Full Article at Inside NoVA
Adairsville, GA Residents Push Back Against Proposed Data Center
A proposed 588-acre data center development in Bartow County, Georgia, has sparked local opposition, with nearly 1,700 residents signing a petition to stop the project. Atlas Development is seeking to rezone agricultural land for a six-building, 2.274 million-square-foot campus, slated for completion by 2031. Residents cite concerns over noise, environmental impact, water usage, and disruption to their rural community. At a town hall meeting, developers emphasized compliance with county ordinances and highlighted potential tax benefits. The rezoning decision is set for April, as tensions between economic development and community preservation continue to mount.
Read The Full Article at Fox5 Atlanta
Ethics Complaint Filed Against Farmington Over Data Center Development
A coalition of residents near a proposed hyperscale data center in Farmington, MN, has filed an ethics complaint against city officials, accusing them of delaying public records requests and colluding with the developer. The Coalition for Responsible Data Center Development alleges that city staff coordinated messaging with the developer, Tract, to downplay opposition and environmental concerns.
The complaints target Community Development Director Deanna Kuennen and Building Inspector Broc Haskamp, with claims that Haskamp posed as a concerned citizen to access internal coalition emails. City officials have denied wrongdoing, stating that consulting developers about public sentiment is standard practice.
The controversy has sparked significant public opposition, with residents voicing concerns about the project’s proximity to homes, potential environmental impacts, and the city’s transparency. Meanwhile, Farmington faces lawsuits from Castle Rock Township over annexation violations, leading to legal injunctions that have temporarily halted the data center’s progress.
The city maintains that public records requests take time due to staffing constraints and that an external attorney is reviewing the ethics complaints. However, residents demand clearer timelines and greater transparency regarding the investigation and development process.
Read The Full Article at Hometown Source
Texas Data Center Bill Sparks Conservative Backlash Over AI and Energy Policies
A proposed Texas Senate bill (SB6) is drawing conservative opposition over concerns it could hinder President Trump’s vision for AI and energy dominance. The bill grants the state broad authority to regulate data centers, potentially making Texas less attractive for large-scale AI projects like Trump’s $500 billion “Stargate” initiative. Critics argue that the regulations could drive up costs, limit competition, and give China an advantage in AI dominance. However, Texas Lt. Gov. Dan Patrick insists SB6 aligns with Trump’s agenda, strengthening the state’s power grid to support data center expansion. The debate highlights tensions between state regulation and free-market energy policies.
