US Municipalities Race to Implement Data Center Zoning Rules

Municipalities across several states are rushing to establish zoning ordinances as technology companies seek land for data centers. In Upper Hanover Township, Pennsylvania, Hanover Development L.P. submitted an application for a 150,000-square-foot facility shortly before the board of supervisors adopted Resolution No. 226-24. Because the application was deemed complete prior to the vote, the project is exempt from the new restrictions. In response, the developer filed a conditional use application and a validity challenge to ensure the project proceeds.

Other Pennsylvania and North Carolina cities are pursuing similar regulatory frameworks. Lancaster City Council is voting on rules that restrict data centers to suburban manufacturing districts, though existing agreements with Chirisa Technology Parks remain exempt. In Southport, North Carolina, the Planning Board will vote on July 16 to allow data centers specifically within the Highway Commercial zoning district, provided they meet strict noise caps and solar array requirements.

In Palo, Iowa, the City Council scheduled a vote for July 13 on an ordinance requiring the Department of Natural Resources to track water usage. This move follows efforts by Google to acquire land near the Duane Arnold Nuclear Plant. These local efforts highlight a legislative gap in Pennsylvania, where a bill sponsored by Representative Paul Friel to allow municipalities to pause applications during zoning reviews has passed the House but remains pending in the Senate.