Local Governments in Three States Restrict Data Center Development
Local councils in Florida, Indiana, and Kentucky have implemented bans or strict zoning regulations to limit the growth of large-scale data centers.
Local governing bodies in three states have taken divergent regulatory actions to curb the expansion of large-scale data centers, citing environmental and community concerns.
In Florida, the Volusia County Council voted 6-0 on Tuesday to prohibit the construction of data centers with a monthly peak load of 50 megawatts or more in unincorporated areas. Councilman Don Dempsey warned that the high water usage required by these facilities could trigger an "unfathomable" number of sinkholes in West Volusia, which he identified as the region most susceptible to such events.
Taking a more flexible approach in Indiana, the Tippecanoe County Area Plan Commission advanced a zoning amendment on Wednesday that subjects facilities exceeding 2 megawatts, 20 acres, or 20,000 square feet to a special exception process. Assistant Director Amanda Esposito argued that a special exception process is better than an outright ban, which she characterized as exclusionary zoning. In response to resident concerns over noise, the commission added a requirement for applicant-funded third-party acoustic studies.
Meanwhile, the Lexington-Fayette Urban County Council in Kentucky voted unanimously on Thursday to remove data centers as a primary use in six zoning areas. Council member Emma Curtis noted that no land in Lexington is currently designated for data center usage, meaning any future developers must seek a zone change. This move follows a previous decision to extend a data center moratorium until October 2027 to allow the county to refine its industry definitions.
