The Future of Data Centers in Henry County, Part 3

What Henry County Needs to Decide

For the past two weeks, we've explored why data centers are being built at an unprecedented pace and examined the potential benefits and concerns they bring to the communities that host them.

Now the focus shifts to Henry County.

In June, the Henry County Board approved a 12-month moratorium on new data center projects. The decision wasn't intended to stop development permanently. Instead, county leaders chose to pause, gather information, and determine whether Henry County's current regulations are sufficient—or whether new rules should be in place before a proposal ever reaches the County Board.

A Pause to Plan

Data centers are unlike most developments the county has considered in the past.

A new subdivision, manufacturing facility, or retail business each presents its own challenges. But modern data centers bring unique questions involving electricity, water, technology infrastructure, emergency response, and long-term land use.

Rather than waiting until an application arrives, county officials have opted to establish expectations in advance.

The goal is simple: create a fair, transparent process that protects the public while giving developers a clear understanding of the county's requirements.

Where Should They Be Allowed?

One of the first decisions the county may need to make is where data centers could be built. Space needs range from 15-30 acres for a small facility, 30-150 acres for an average data center, and up to 150-500+ acres for “hyperscale” centers.

Throughout the Henry County moratorium, the board will be considering questions like:

  • Should they be limited to industrially zoned property?

  • Should they be located near existing electrical, utility, or stormwater infrastructure?

  • Should productive farmland receive additional protections?

  • Should minimum setbacks be required from homes, schools, parks, or other sensitive areas? Will any additional landscaping/ screening be required?

  • Are safeguards in place to protect farmland and our rural character?

The answers will shape not only whether a project is approved, but where one could realistically be proposed.

How Much Power Is Too Much?

Modern data centers consume large amounts of power, and future facilities are expected to require even more as technology needs continues to expand.

Issues that are not properly addressed upfront can cause increased electricity bills:

  • need for new substations, transmission lines, or equipment

  • higher capacity requirements

  • stranded (abandoned) projects

  • increased wholesale prices due to increased demand

  • local grid updates

Addressing these issues prior to approval may involve:

  • an infrastructure payment agreement

  • a utility cost-impact study

  • separate utility rates so the data center pays its fair share (also known as a separate large-load rate treatment)

  • exit and stranded cost protections

  • agreed-upon expansion triggers

  • public reporting and accountability measures

  • third-party regulator reviews

While utilities ultimately determine whether power can be supplied, the county may require developers to document those plans before a project moves forward.

How Will Water Be Managed?

Not every data center uses the same cooling technology. Some rely primarily on outside air. Others use water-based cooling systems. Still others use hybrid designs that reduce water consumption while maintaining efficient operation. Water consumption ranges from as much as 5 million gallons daily to nearly zero, depending on the cooling system and the size of the facility.

Before considering a project, the county may want developers to identify:

  • Acceptable cooling systems

  • Estimated daily water use

  • The source of the water

  • Potential impacts on nearby water systems

  • Plans for drought conditions

  • Wastewater management

  • Maximum annual withdrawal and consumption caps

  • Water usage and monitoring measures

What About Noise?

Unlike factories, data centers typically don't produce smoke or heavy truck traffic. They do, however, operate 24 hours a day. Cooling equipment, transformers, ventilation systems, and backup generators all create sound.

Many communities establish measurable noise standards instead of relying on subjective descriptions like "too loud."

Possible standards could address:

  • Maximum daytime noise

  • Maximum nighttime noise

  • Property-line measurements

  • Generator testing schedules

  • Required sound barriers or landscaping

  • Quieter equipment

  • Noise monitoring, complaint, and response plans

Clear standards provide certainty for both residents and developers.

Emergency Preparedness

Data centers contain sophisticated electrical equipment, backup power systems, batteries, and fire suppression systems.

Although these facilities are designed with multiple layers of safety, local emergency responders still need to have the tools and training to respond appropriately to potential emergencies.

County officials may ask:

  • What specialized training would responders need?

  • Would additional equipment be necessary?

  • How would emergency access be maintained?

  • What information should fire departments receive before construction?

These discussions often occur long before a building permit is issued.

Roads and Infrastructure

A project of this size could affect roads, utilities, and other public infrastructure. Construction may require heavy equipment and frequent deliveries. Electrical service may require upgrades. Fiber-optic connections may need expansion.

One important question is who pays for those improvements. Many communities negotiate development agreements that clearly assign responsibility before construction begins.

County officials may formalize expectations regarding:

  • road repairs for wear and tear caused by construction traffic

  • upgrades to roads, bridges, and intersections

  • traffic control, signage, and safety measures

  • dust control and cleanup

  • construction hours

Air Pollution

Data centers rely on backup generators to keep critical systems running during outages. When these generators run or are tested, they emit pollution, including:

  • nitrogen oxides

  • particulate matter

  • carbon monoxide

  • volatile organic compounds (VOCs)

  • carbon dioxide

  • other toxins including formaldehyde, benzene, and others

Limiting those pollutants or outlining expectations requires policies outlining:

  • generator testing schedules

  • generator maintenance runs

  • fuel used in generators

  • location relative to prevailing winds and nearby homes, schools, businesses

  • stack height and dispersion modeling

Data center generators are regulated as stationery engines under the Clean Air Act.

Weighing the Choice

Supporters often point to the economic impact of data centers, while opponents often question whether those benefits justify the project's size and infrastructure needs.

Rather than relying on estimates or assumptions, the moratorium allows Henry County the opportunity to evaluate measurable information, including:

  • Expected property tax revenue

  • Potential tax incentives

  • Construction investment

  • Temporary construction jobs

  • Permanent employment

  • Local purchasing commitments

  • Infrastructure contributions

  • Long-term maintenance obligations

Looking beyond the headline investment number allows decision-makers to understand a project's overall impact on the community.

Should Henry County Create New Rules?

One of the biggest questions during the moratorium is whether the county's existing zoning regulations are enough.

Many communities have concluded that data centers deserve their own standards because of their unique infrastructure needs.

A future ordinance could address issues such as:

  • Appropriate zoning districts

  • Minimum lot size

  • Building height

  • Setbacks

  • Landscaping and screening

  • Noise limits

  • Water reporting

  • Utility documentation

  • Emergency response planning

  • Road-use agreements

  • Environmental requirements

  • Financial guarantees

  • Decommissioning plans if a facility eventually closes

The purpose of those standards wouldn't necessarily be to encourage or discourage development. Their purpose would be to ensure every proposal is evaluated using clear, consistent, and transparent criteria.

Looking Beyond One Project

The decisions Henry County makes during this moratorium could shape how the county evaluates technology-related development for decades.

Strong regulations provide clarity for residents, developers, and elected officials alike. Poorly defined regulations can create uncertainty for everyone involved.

The coming months give Henry County an opportunity to ask difficult questions before difficult decisions have to be made.

Next in the series: How would a data center proposal actually move from concept to construction? In the final installment, we'll walk through the decision-making process, the roles of local, state, and utility partners, and how residents can participate as plans take shape.

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