An Introduction to Data Center Zoning

Definition

Data center zoning is a set of land-use rules that a city or county applies to dictate where data centers can be constructed and used. This approval differs from past approvals for data centers, which were previously treated like regular industrial and commercial buildings. Many municipalities and local jurisdictions are now establishing their own zoning categories, overlay districts, or even conditional use processes. Data center zoning allows local officials to regulate factors like lot size, setbacks, noise, water use, and traffic for hyperscale or large-scale facilities.

The National League of Cities defined three different zoning approaches for data centers. 

• By right: This refers to data center projects that fulfill all zoning requirements. They can begin without review or public hearings.
• By condition use: This pertains to projects that comply with specific conditions in zoning ordinances. They may require a public hearing and approval from the zoning board.
• By special exception: This applies to data center projects that may be approved even if they are not currently allowed under the existing zoning standards. Typically, this requires a public hearing and discretionary reviews.

➕Benefits

Data center zoning provides residents, developers, and local governments with a clear, organized framework, rather than relying on case-by-case negotiations. Some of the benefits of it include:

Predictability for Developers

Data center developers assess which projects meet the necessary criteria and identify any limitations or setbacks regarding their size. They also determine the required approvals based on the specifications outlined for a data center zoning category. This process helps minimize the risk of project delays or interruptions during the review phase.

Protection for Residents

Having a defined zoning category will establish standards for noise, buffering, and lighting, ensuring that data centers are kept away from residential areas. This will help prevent large data center facilities and equipment from negatively impacting the quality of life for nearby homes and schools.

Tax and Revenue Planning

Data centers offer significant property and equipment tax revenue. Zoning regulations designate these data centers for suitable industrial or commercial areas, allowing local jurisdictions to collect this revenue without disrupting other public services.

Infrastructure Planning

Some zoning regulations are linked to utility capacity, confirming the availability of power, water, and sewer services. This assists the municipality or local jurisdiction in confirming that a site selection can support the data center's load prior to granting approvals.

Project Consistency

While data center zoning regulations may vary between cities and counties, it is important to recognize that these rules apply uniformly to all data center applicants within their respective jurisdictions. This provides an objective standard without favoritism. 

📋Data Center Zoning Requirements

Local data center zoning regulations generally address similar topics, although the specific boundaries can vary by jurisdiction. Below are some common requirements:

Site and Building Requirements

Utilities and Environmental Requirements

Operational Requirements

📍Locations with Zoning Codes

An increasing number of data center zoning regulations are being adopted and updated in regions with high data center demand. Here are some locations that have active and rejected zoning codes for data centers: 

Loudoun County, Virginia

The county now requires a special exception for all new data center applications. Additionally, a legislative review and public hearings must take place before the planning commission and the board of supervisors can proceed. The county is currently drafting the second phase of its use-specific standards for data centers, substations, and generators.

Prince William County, Virginia

The county has established a Data Center Opportunity Zone Overlay District (DCOZOD) to determine areas where data centers can be built by right. If a proposed location falls outside this overlay or involves parcels that do not meet eligibility requirements, new data centers must go through a Special Use Permit process. This also includes public hearings before the Board of Supervisors. As of September 2026, the Board voted to lower the overlay by 62% (from about 9,700 to around 3,500 acres), which narrows where by-right development is allowed moving forward.

Albemarle County, Virginia

The county currently allows data centers up to 40,000 square feet by right in their industrial zoning. If a data center exceeds the established size limit, it requires a special use permit. Additionally, a draft ordinance proposed overlay districts for the Emerson/Rivanna Futures area and the Airport Industrial Area. This would allow for the construction of larger facilities, up to 500,000 square feet, by right. However, the county postponed the consideration of this draft in October 2025. As a result, these overlay allowances are not currently in effect.

DeKalb County, Georgia

The county’s rejected zoning text amendment categorizes data centers based on square footage and power demand, applying stricter standards to larger facilities. It also requires buffers and a review process depending on the project's scale. This was rejected last June 23, 2026, by the Board of Commissioners.

Nashville, Tennessee

In Davidson County, the zoning ordinance restricts data centers that are larger than 500,000 square feet. Data centers between 100,000 and 499,000 square feet also require a special-exception process and a public hearing and must be located in heavy industrial zones, away from homes and schools. 

Groton, Connecticut

There is a 12,500-square-foot zoning cap in this town. They are also limited to industrial areas, must meet noise standards, must not use water-evaporation cooling, must utilize renewable energy, and must be at least 1,500 feet away from another data center. 

Conclusion

Data center zoning is essential for determining where data centers can be built and used. It establishes the district regulations, approval processes, and standards that a project must meet before development can proceed. An increasing number of local governments are revising these zoning codes, which can include citywide overlay districts or parcel-specific special exceptions.

For developers, it's crucial to understand local zoning codes to verify the qualifications required for approvals. For residents, these zoning codes protect physical separation, environmental safeguards, and design standards regulating noise, light, and resource use. Strisker offers tools, features, and newsletters to keep you informed on new or revised data center zoning codes. 

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