Local Governments Clash Over Data Center Zoning and Expansion

Local governments in several states are adopting contrasting approaches to the rapid expansion of data centers, balancing economic incentives against environmental and resource concerns. In Colorado, the Douglas County Board is poised to approve a $19.3 million tax rebate for a Flexential Corp. facility in Parker. The project uses a closed-loop liquid cooling system to mitigate environmental impact, though other Colorado cities like Denver and Broomfield have enacted moratoriums on new facilities.

In the Northeast, a judge in Lowell, Massachusetts, blocked the Markley Group LLC from installing four new diesel generators at its data center. The ruling follows a lawsuit by local residents and the Conservation Law Foundation, who argue the expansion would degrade air quality and increase noise pollution in a densely populated area.

Meanwhile, officials in the Midwest and South are proactively drafting regulations. In Lincoln County, Nebraska, the Planning Commission recommended approval of zoning amendments regarding noise limits and setbacks. Zoning Administrator Judy Clark defended the rules as strong protections, though she acknowledged that regulations are living documents that can be changed if they prove ineffective. In Laredo, Texas, Mayor Victor Trevino hosted a town hall where residents expressed concerns over potential water and power depletion, despite the lack of official applications for new facilities in the city.