Inside the Rules Communities Are Using to Rein In Data Center Impacts

As Henry County studies data centers during its temporary moratorium, it is not the only local government examining how existing zoning rules apply to a type of development that can bring unusually large demands for electricity, water and supporting infrastructure.

Communities in Illinois, Iowa, Virginia, Georgia and elsewhere have adopted data-center-specific ordinances or revised existing zoning codes. Their approaches differ, but the ordinances provide examples of the issues local governments have chosen to address before or during the approval of a project.

Henry County's Planning and Development Committee considered a resolution for a temporary moratorium on new data centers in June. The moratorium gives the county time to study the issue before new projects move through the zoning process.

No single ordinance provides a standard model. Local authority also varies by state. However, existing ordinances show several recurring areas of regulation: where data centers may locate, water use, noise, setbacks, utilities, roads, emergency planning, environmental studies and what happens when a facility eventually closes.

Linn County Requires Water Study and Agreements

One of the closest regional examples is Linn County, Iowa.

In February 2026, the Linn County Board of Supervisors approved an ordinance establishing separate zoning rules for small and large data centers in unincorporated portions of the county.

The ordinance addresses building setbacks, noise, traffic and road impacts, emergency planning and site-plan review. Large-scale projects face additional requirements.

Before a large data center can proceed, the developer must complete a water study describing the project's water source, anticipated consumption, cooling method, efficiency measures, reliability and potential effects on existing groundwater and surface-water users.

The developer must also enter into a water-use agreement with Linn County. That agreement addresses monitoring, reporting, information sharing and procedures that could apply during droughts, emergencies or other periods of constrained water supply.

Linn County also requires an economic development agreement for a large-scale data center. The agreement establishes any incentives the project will receive and contributions associated with the development. County documents state that it must include a community fund that can support infrastructure, public services, environmental protection and workforce development. It may also include measures addressing nearby property values.

The county subsequently placed an 18-month moratorium on new applications to rezone property for large-scale data centers beginning July 1, 2026.

County officials said the additional review would consider cumulative effects involving public infrastructure, water, electrical infrastructure, emergency response, transportation and long-range land-use planning.

An Illinois Community Requires Special-Use Approval

Troy, Illinois, provides an example from within the state.

Under Troy's ordinance, data centers are permitted only in the city's I-2 General Industry zoning district and require a special-use permit.

The review includes the project's relationship to surrounding and planned land uses, building design, parking, traffic, road capacity, utility demand, site access, signage and environmental effects. The applicant must provide confirmation from utility providers that adequate facilities are available and submit a noise study.

Troy also establishes specific operating noise limits.

Stationary noise adjacent to residential land uses cannot exceed 60 decibels during the day or 55 decibels at night. The limit adjacent to nonresidential uses is 70 decibels.

The ordinance further reduces permissible levels when sound contains discrete tones or impulsive characteristics. It requires an existing ambient-noise study and allows post-construction testing to determine whether an operating facility complies with the limits.

Those provisions demonstrate one distinction found in some data-center ordinances: rather than relying entirely on a general noise ordinance, the regulations establish standards specifically for the facility.

Albemarle County Uses Setbacks and Cooling Requirements

Albemarle County, Virginia, regulates the physical location and operation of data centers through measurable standards.

Existing regulations require data-center buildings and associated equipment — including generators, HVAC systems and battery backup equipment — to be at least 200 feet from property lines and 500 feet from the county's Rural Areas zoning district.

Data centers must use public water and sewer. If water is used for cooling, the system must be closed-loop or use recycled water.

Generator testing is another regulated activity.

Routine generator maintenance is limited to weekdays between 10 a.m. and 4 p.m. Generators must use enclosures that limit sound to 70 dBA measured 23 feet from the generator, while the facility remains subject to the county's overall property-line noise requirements.

The county has also studied additional requirements involving landscaping, equipment screening, building appearance and post-construction noise testing. Its draft standards included three staggered rows of evergreen trees in certain locations and requirements intended to break up the appearance of large building facades.

Albemarle's experience also illustrates that local regulatory authority differs by state. The county states that Virginia law allows it to regulate matters such as zoning districts, setbacks, building size, height, noise and landscaping, but does not give it zoning authority to regulate a data center based on factors such as energy consumption or customers served.

Jones County Requires 100 Acres and a Decommissioning Bond

Jones County, Georgia, adopted detailed data-center regulations in January 2026.

A data center is not permitted as a matter of right in any zoning district. It requires conditional-use approval in the county's M-2 district.

The regulations establish a minimum site size of 100 acres. Buildings and equipment generally must be at least 200 feet from property lines, while structures generating noise are subject to a 400-foot setback.

The county establishes noise limits of 55 dBA during the day and 45 dBA at night at property lines. Generator testing is restricted to one weekday test period per week between 11 a.m. and 1 p.m.

Applications must include sound modeling.

Water requirements are also specific.

Jones County requires closed-loop cooling or equivalent technology designed to minimize water consumption. Non-closed-loop and evaporative cooling systems are prohibited.

Data centers must use a public water supply, and wells cannot be drilled or operated to supply the facility.

Applicants must also submit a traffic-impact study and a baseline environmental-impact study addressing potential effects involving air quality, water, energy generation, noise, lighting, traffic, natural resources and archaeological or cultural resources.

Planning for the End of a Facility

Jones County's ordinance addresses an issue that occurs potentially decades after a zoning application is approved: decommissioning.

A building-permit application must contain a decommissioning plan describing how electronic equipment and other materials will be managed, recycled or disposed of.

The requirement applies not only when the entire facility closes but also to electronic waste generated through future equipment replacement and technological upgrades.

The developer must provide financial security, such as a bond or letter of credit, sufficient to cover the county's estimated cost of decommissioning the facility.

Wastewater is addressed separately. Data centers must connect to a publicly owned sewer system. Where public sewer is unavailable, the ordinance prohibits on-site wastewater treatment and disposal systems.

Applicants must estimate wastewater volumes and explain the treatment and disposal of process wastewater, including flows associated with cooling and water-treatment systems.

Different Ordinances Address Different Stages of Development

The ordinances reviewed do not regulate data centers identically.

Some focus heavily on the initial land-use decision. Troy requires special-use approval and evaluates compatibility, traffic, utilities and noise before a project is approved.

Others establish detailed operating standards. Albemarle regulates setbacks, cooling systems and generator testing, while Jones County establishes property-line noise limits and cooling requirements.

Linn County adds another layer by requiring agreements governing water use and economic development in addition to ordinary zoning requirements.

Jones County extends regulation to the end of the facility's useful life through a decommissioning plan and financial surety requirement.

Together, the ordinances identify several questions local governments have addressed when developing data-center regulations:

  • Where can a data center be located?

  • Is it permitted by right or does each project require discretionary approval?

  • How far must buildings, generators and cooling equipment be located from neighboring properties?

  • What noise levels are allowed during daytime and nighttime hours?

  • Is sound modeling required before construction and testing required afterward?

  • Where can the facility obtain water?

  • What cooling technologies are permitted?

  • How is water consumption measured and reported?

  • Can groundwater be used?

  • What utility-capacity information must be supplied before approval?

  • What road and traffic studies are required?

  • What emergency planning is required?

  • What environmental information must an applicant provide?

  • What landscaping or screening is required?

  • Are development incentives and community contributions addressed through a separate agreement?

  • What happens when equipment is replaced or a facility permanently closes?

  • Is the developer required to provide financial security for eventual decommissioning?

For Henry County, the examples provide a record of the subjects other local governments have chosen to address as they developed regulations for a land use that may not have been specifically contemplated when their existing zoning codes were written.

Source Documents