Data Centers and the Granville County Land Development Ordinance

On August 3, 2026, the Granville County Board of Commissioners held a public hearing to and approved an amendment to the Land Development Ordinance to establish a clear framework for considering data center uses. The purpose of the amendment is not to predetermine the outcome of any future proposal. Rather, it is to provide greater clarity, transparency, and consistency in how data center projects are evaluated under the County’s zoning regulations. The Planning Board unanimously recommended approval of the proposed text amendment at their meeting on July 16, 2026. 

Why is the Amendment Needed?

The County’s current Land Development Ordinance (“Ordinance”) does not specifically address data centers. As a result, the Ordinance provides no zoning framework tailored to this type of use.

When asked how a data center would be considered under the current Ordinance, the Planning Director concluded that a data center would likely be reviewed under the Ordinance’s “designed group development” provisions because data centers are not otherwise identified as a distinct land use. However, those provisions were not created specifically for data centers and provide limited guidance regarding the unique considerations that can accompany large-scale data infrastructure facilities. The existing Ordinance therefore requires decision-makers to evaluate a modern and rapidly evolving use through a category that was not designed for that purpose.

The proposed amendment is intended to provide greater clarity for property owners, County staff, appointed boards, elected officials, and members of the public by establishing a zoning framework specifically designed for the consideration of data center uses.

What is Being Proposed?

The proposed text amendment would create a process under which a data center could only be considered on property that has been zoned to the County’s general industrial district (I-2) and is then zoned into a conditional zoning district specifically designed for data centers.

This approach provides two levels of review, each of which is a separate legislative rezoning decision.

First, the property must be zoned or be rezoned to the County’s general industrial district (I-2). Data centers are significant infrastructure and economic development projects that are generally more comparable to industrial uses than to residential, agricultural, or neighborhood-scale commercial development.

Second, the property would need to be rezoned into a conditional zoning district specifically designed for data centers. Conditional zoning is a planning tool expressly authorized by North Carolina law that allows the County to evaluate a particular project on a particular site and consider site-specific commitments and conditions as part of the rezoning process. This step allows the review process to focus on the actual proposal before the County rather than relying solely on generalized regulations.

If a data center use ceases in the future, the other permitted uses in the I-2 district would be allowed on the property unless restricted by the conditional zoning approval or the property could be rezoned.

Why Use Conditional Zoning Rather Than Extensive Technical Regulations?

Staff has intentionally recommended a framework that focuses on land use compatibility and site-specific review rather than an extensive set of highly detailed technical standards.

Data center technology continues to evolve rapidly. Standards that may appear appropriate today could quickly become outdated as technology, infrastructure design, energy systems, and operational practices change. In addition, many matters frequently discussed in connection with data centers, including environmental regulation, utility service, energy infrastructure, telecommunications systems, and other technical issues, are regulated in whole or in part under state and federal law. Local governments in North Carolina possess zoning authority under Chapter 160D of the North Carolina General Statutes, but that authority is not unlimited.

For these reasons, staff believes the County is best served by establishing a flexible zoning framework that focuses on matters clearly within local land use authority while allowing site-specific concerns to be addressed through a legislative conditional zoning process. This approach allows each proposal to be evaluated on its own merits, in its own location, and in light of the facts presented at the time of review.

What Role Does the Board of Commissioners Play?

A central feature of the proposal is that it preserves the authority of the Board of Commissioners.

Under Chapter 160D of the North Carolina General Statutes, rezoning decisions are legislative decisions made by elected officials. The Board of Commissioners retains the discretion to determine whether a proposed zoning district is appropriate for a particular property after considering the application, public input, planning considerations, consistency with adopted plans, and other relevant factors.

The proposed amendment establishes a clear process through which future proposals may be considered, while preserving the Board’s legislative role and allowing each proposal to be evaluated based upon its own circumstances.

Why is Staff Recommending This Approach?

Staff recommends this framework because it combines clarity, flexibility, transparency, and accountability.

The proposal replaces reliance on a rarely used zoning category that was not designed specifically for data centers with a zoning framework tailored to the use. It utilizes planning tools expressly authorized by North Carolina law, provides a more transparent process for applicants and the public, allows site-specific concerns to be considered through conditional zoning, and preserves the Board of Commissioners’ discretion to evaluate each proposal individually.

Most importantly, the proposed amendment recognizes that data centers are a unique and evolving form of development. Rather than attempting to create a rigid set of technical regulations that may become outdated or extend into matters beyond the County’s regulatory authority, the proposal establishes a framework that allows future projects to be evaluated through an open public process using well-established zoning tools authorized by North Carolina law.

The purpose of the amendment is not to encourage or discourage data centers. The purpose is to ensure that, if a data center proposal is presented to Granville County, the County has a clear, transparent, and legally sound framework for evaluating that proposal and determining whether it is appropriate for the community.

1. Why didn't the County adopt a moratorium on data centers?
   A moratorium is a tool that allows a local government to temporarily pause development approvals while it studies an issue and adopts new regulations. Granville County concluded a moratorium is unnecessary here.Under the current Ordinance, a data center is not permitted by right anywhere in the County. At a minimum, any data center project would require a limited use permit, and in most cases, it would  also require a discretionary, legislative rezoning decision by the Board of Commissioners before it could proceed. There is therefore no gap that a “pause” is needed to close, and no data center application is currently pending.

   A moratorium also carries its own procedural and legal requirements. North Carolina law (G.S. 160D-107) requires a public hearing and mandates that any moratorium ordinance include specific written findings, including a statement of the problem, an explanation of why alternatives to a moratorium were considered and rejected, a definite termination date, and a schedule for adopting permanent regulations. In other words, a moratorium requires much of the same analytical work as simply adopting the amendment, but produces only a temporary result rather than a lasting solution.

   The County has chosen to devote its time and resources to developing a clear, permanent zoning framework rather than a temporary freeze that would ultimately require the same work.

2. Why doesn't the County simply ban data centers altogether?
   The proposed framework gives the Board of Commissioners the ability to say “no.” Because a data center cannot be built unless the Board affirmatively approves both an industrial rezoning and a conditional data center district, the Board retains full authority to deny any specific proposal it finds inappropriate for a particular location. A ban would provide no additional protection that this discretionary process does not already provide.A categorical, county-wide prohibition of an otherwise lawful industrial use would, however, be more legally vulnerable than a discretionary framework, because it can be challenged as arbitrary or exclusionary. By contrast, a framework grounded in traditional land-use compatibility and site-specific review rests on well-established zoning authority and is far easier to defend than a blanket ban of a lawful use.

   Finally, a blanket ban would permanently eliminate the County’s ability to consider a well-sited, appropriately conditioned proposal that could provide investment and tax base benefits to the County. Given how rapidly this industry is changing, the County has chosen to preserve its discretion to evaluate each proposal on its own merits rather than foreclose all options in advance.

3. Doesn't this amendment mean that the County is inviting or approving data centers?
   No. The amendment does not approve any data center and does not identify any specific property for a data center. It establishes a process for how a future proposal would be evaluated if one is submitted. Every proposal would still require a separate public rezoning process and a legislative decision by the Board of Commissioners, which may approve or deny the request.

4. Why doesn’t the ordinance include detailed standards for noise, water use, air quality, and similar concerns?
   The County shares these concerns, and the conditional zoning process is specifically designed to allow site-specific issues, such as buffering, setbacks, noise, lighting, traffic, and infrastructure, to be addressed on a project-by-project basis.

   Just as importantly, many of the technical matters most often raised in connection with data centers, including environmental discharge, water quality, air emissions, and energy and utility regulation, are already governed by state and federal law and permitting programs. Local governments have broad but not unlimited authority, and an ordinance that attempts to regulate matters preempted by state or federal law can expose the County to unnecessary legal challenge without providing real protection.

   Rather than adopt a long list of static technical standards, some of which may be preempted, and many of which could quickly become outdated as the technology evolves, the County has chosen a flexible framework that focuses on land-use compatibility and allows conditions to be tailored to each specific proposal.

5. If technical concerns are regulated by the state or federal government, how does the County protect residents?
   The County protects residents in three principal ways: (1) by directing data centers only to properties appropriate for industrial development; (2) by requiring a conditional zoning process in which project-specific conditions, such as buffers, setbacks, screening, noise limits, and infrastructure commitments, can be negotiated and imposed; and (3) by preserving the Board’s discretion to deny any proposal that is not a good fit for its proposed location. State and federal permitting programs then provide an additional and independent layer of environmental oversight.

6. Can conditions really be enforced if a data center violates them?
   Yes. Conditions attached to a conditional zoning district become part of the approved zoning for the property and are enforceable by the County through its ordinance enforcement authority. In addition, applicable state and federal environmental and utility permits are enforced by the respective regulatory agencies. The specific enforcement mechanisms and responsible parties can be identified as part of any individual project’s review.

7. Why are data centers directed to industrial districts rather than allowed more broadly?
   Data centers are large facilities with significant infrastructure, power, and site requirements that are generally more comparable to industrial uses than to residential, agricultural, or neighborhood commercial development. Requiring that a site first be zoned or be rezoned to an  industrial (I-2) classification ensures that data centers are considered only in locations genuinely suited to that scale and intensity, and keeps them away from areas the County has designated for rural, agricultural, or residential character.

8. What happens to the property if a data center closes or never gets built?
   If a data center use ceases in the future, the other permitted uses in the I-2 district would be allowed on the property unless restricted by the conditional zoning approval or the property could be rezoned.  This keeps the land within a category consistent with its established suitability and prevents a discontinued data center from leaving behind an orphaned or inappropriate zoning designation.

9. Is this approach authorized by North Carolina law?
   Yes. Conditional zoning is expressly authorized under Chapter 160D of the North Carolina General Statutes and is a widely used and well-established planning tool. Rezoning decisions are legislative decisions reserved to the Board of Commissioners, which allows the Board to retain full discretion over whether a particular proposal is appropriate.

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