Specify Zoning Requirements
Site Data Centers in Industrial Zones Only
Local jurisdictions take different approaches to siting data centers through zoning regulations. Some jurisdictions establish Data Center Overlay districts, defining specific zones where data centers can be built and prohibiting them in other zones. Other jurisdictions specify if and where data centers fit into existing zoning districts.
Regardless of the approach, jurisdictions should specify that data centers can only be built in areas zoned for heavy industrial activity, or create an overlay district in industrial areas only. Local governments should prohibit data center construction in residential zones, agricultural areas, commercial areas, and light industry zones where office, residential, and commercial buildings can be constructed.
If a jurisdiction must allow the development of data centers in areas zoned for light or mixed-use industry, stricter requirements and specifications should apply to those areas.
Note: Restricting data centers to industrial zones does not fully mitigate their harmful community impact. A data center’s water and energy use impacts community resources regardless of where it is sited. Air pollution from industrial zones adversely affects surrounding communities, which is particularly concerning given that industrial zones are often sited next to Black and Brown neighborhoods, or other marginalized communities. Data centers have been built or are currently planned in the Frank C. Pigeon Industrial Park in Memphis, Tennessee; the Bellwether District in Philadelphia, Pennsylvania; and Kingsboro Industrial Park in Rocky Mount, North Carolina—all of which are located near historically Black communities.
Strong example
In Atlanta, Georgia, the city code was amended to stipulate that data centers shall be excluded from permissible use in the Industrial Mixed Use District (I-Mix) zoning district.
Strong Example
In Prince William County, Virginia, data centers are prohibited in agricultural districts.
Prohibit Variances and Special Use Permits
Variances allow zoning boards to approve use cases that are prohibited under existing zoning law, such as building height or minimum setback requirements. To receive a variance, the applicant must prove that they will suffer “hardship” without variance approval.1 Data center developers have petitioned2 zoning boards for variances from existing zoning regulations, such as restrictions on building heights, arguing that failure to provide a variance will lead to financial hardship. Consider prohibiting all applications for special use permits and variances for data center siting. If not prohibited, the threshold for data centers to apply for use variances to sidestep zoning applications should be exceedingly high.
Prohibit Data Centers in Commercial and Mixed-Use Zoning
This prohibition should be framed as a community health measure to ensure that communities are investing first and foremost in development that will sustain and nourish the community, including housing, grocery stores, and businesses that can bring long-term jobs into the community.
- Ryan Coffey, “Difference Between Special Use Permits and Variances,” Michigan State University Extension, March 22, 2013, https://www.canr.msu.edu/news/difference_between_special_use_permits_and_variances. ↩︎
- James Engel, “Springdale Zoning Hearing Board Considers Data Center Developer’s Requests,” TribLIVE, October 23, 2025, https://triblive.com/local/valley-news-dispatch/springdale-zoning-board-considers-data-center-developers-requests. ↩︎
