Planning Commission narrows data-center ordinance proposal to M2 and directs staff to draft policy

The James City County Planning Commission on July 2 recommended the Board of Supervisors adopt an amendment to the county zoning ordinance that would define "data centers" and limit new data centers to review under a special-use permit in M2 general industrial districts, while asking the board to direct staff to develop a broader county policy for evaluating proposed data centers.

Planner Christie Parrish told the commission the Board of Supervisors adopted an initiating resolution March 11 to consider ordinance changes after staff briefed the policy committee on June 12. Parrish described data centers as facilities that store, manage and process digital data inside large warehouse-type buildings and summarized potential impacts cited in the Joint Legislative Audit and Review Commission (JLARC) and other sources: large capital investment and local tax revenue, low traffic generation and generally high-wage jobs on the positive side; and potential negative impacts including visual scale of buildings, high energy and water demand, onsite diesel generators, noise from cooling equipment, and e-waste disposal concerns.

At the policy committee staff proposed removing data centers as a permitted use in M1, M2, MU and EO districts and instead allowing them as a specially permitted (SUP) industrial use in M2 and EO, plus a draft list of recommended performance standards covering setbacks, screening, energy and water use, noise, decommissioning and economic returns. Parrish said county attorneys advised that the Code of Virginia currently authorizes requiring a decommissioning plan only for solar facilities, so a mandatory decommissioning-plan condition for data centers would not be permitted in the same way.

Commissioners discussed which districts should be subject to SUP review and whether to adopt performance standards by ordinance or to direct the Board to adopt a separate county policy. Several commissioners said they favored flexibility so the county can adapt rules as technology and best practices evolve; others urged predictability via codified standards. Commissioners also discussed water sources and electrical capacity: one commissioner said the southeastern BASF/James River/Greenmount area (served by Newport News surface water and near transmission infrastructure) could be an appropriate location, while other M2 parcels dependent on groundwater likely could not meet surface-water or other performance standards.

Commissioner Frank Everson voted against the motion; the roll-call vote otherwise recorded aye votes from Jack Polster, Steve Rogers, Scott May, Dr. Ullman and Chair Jack Haldeman. The commission’s recommendation to the Board of Supervisors includes adding a definition for data centers, limiting new data centers to the M2 district subject to an SUP, and requesting that the Board direct staff to develop a comprehensive policy listing best practices and performance criteria to guide SUP review. Parrish told commissioners staff would work with the county attorney to draft any ordinance text or policy language requested by the Board and return through the policy committee and Planning Commission.

The Planning Commission’s action is a recommendation; the Board of Supervisors will make any final ordinance changes.