US Cities Enact Restrictions on Data Center Development

Local governments in Virginia and New Hampshire enacted restrictive measures against data center development on Tuesday, citing concerns over energy consumption, water usage, and environmental impacts.

The Chesapeake City Council unanimously approved an ordinance ending a by-right development loophole. Data centers are now limited to industrial zoning districts and require a conditional use permit and case-by-case council approval. The rules ban the use of groundwater for these projects and establish setbacks of 100 feet from property lines and 1,000 feet from residential structures. This follows an eight-month moratorium and a request for an advisory opinion from Virginia Attorney General Jay Jones regarding the city's authority to implement a total ban.

In neighboring Virginia Beach, the City Council unanimously approved a 12-month moratorium on new data center permits. The pause allows planners to create specific zoning regulations, as the city currently categorizes data centers as warehousing or distribution establishments. This move follows similar actions in Chesapeake.

Separately, the city of Rochester, New Hampshire, prohibited data centers in all zoning districts except for the recycling industrial district. In that specific area, developers must now obtain a conditional use permit. Mayor Chuck Grassie and local residents drove the decision by highlighting the potential for excessive resource consumption.