Zoning for AI Data Centers (Part 2) Squaring the Circle: The toolkit we need.

By Ron Humphries | Contributing columnist to The Shelby Independent | Opinion

Editor's note: This is a two part opinion series due to its length. This is the second part. Access Part one here https://www.shelbyindependent.com/post/zoning-for-ai-data-centers-part-1-squaring-the-circle-2026-tech-meets-1926-zoning

OPINION – As noted in the first part of this two part series, government exists to safeguard the public's health, safety, and welfare, and zoning ordinances are essential tools for achieving this goal. In light of this, AI data centers present unique challenges for jurisdictions and require measures that protect both the environment and nearby residents.

To address these challenges, jurisdictions should establish distinct districts based on power metrics and tie mandatory infrastructure requirements specifically to AI zones. This approach allows jurisdictions to legally tie heavy infrastructure mandates to these designated areas, protecting public interests and relieving traditional data centers of costly compliance burdens. For instance, facilities in the High-Density AI Zone should be mandated to utilize advanced cooling technologies, such as closed-loop liquid cooling or direct-to-chip cooling systems. In contrast, smaller traditional facilities can continue to rely on standard air cooling methods.

To shield residents from power and utilities impacts, I suggest that any High-Density AI Data Center must provide its own power generation and/or build a dedicated, on-site power substation, with adequate setbacks from residential areas to mitigate electrical noise and transformer humming. Additionally, requiring a mandatory "Grid and Utilities Impact Assessment" and a developer-funded infrastructure fee for new facilities will ensure those building these facilities fund any necessary localized power transmission and utility upgrades.

A stringent, comprehensive zoning ordinance is required to protect public health, safety, and welfare while encouraging the growth of innovative AI technologies. This can be done while protecting the livability of our communities, preserving the integrity and operational efficiency of traditional data centers, and fostering a balanced, sustainable technological landscape for all stakeholders.

As mentioned earlier, I do not claim to be an expert in this field. However, I researched existing and proposed zoning ordinances from across the country. I drew on my years of experience on the planning board to compile the following example AI Data Center-specific ordinance. It is certainly not the complete toolkit I believe we need, but I think it hits on the major issues.

For the full text of the example ordinance, see: Zoning for AI Data Centers, below.

In conclusion, integrating advanced AI technology into our urban landscapes requires a fundamental rethinking of zoning regulations, primarily to protect the public interest while enabling smart, sustainable growth. By distinguishing between Traditional and AI Data Centers, we can tailor our zoning strategies to address the unique energy demands and operational intricacies of these facilities. This approach safeguards public health and safety while promoting environmental stewardship and community well-being. The proposed zoning reforms, centered on facility-wide thresholds and stringent performance standards, are essential tools for managing the impact of AI data centers. By prioritizing responsible development, we can create a regulatory framework that supports innovation while keeping residents' needs and concerns at the forefront. As we move forward, our zoning laws must adapt to the evolving technological landscape, enabling us to build a future that is both resilient and responsive to the challenges and opportunities ahead.

Squaring the Circle: Example Ordinance

High-Density AI Data Center Performance Standards

A. Purpose and Intent

The purpose of this Section is to regulate High-Density AI Data Centers (defined as facilities with an intended electrical interconnection capacity exceeding 50 MW, or a design density exceeding 40 kW per server rack). Because of their specialized computational intensity, continuous 24/7 cooling demands, and heavy electrical infrastructure, these uses create distinct cumulative burdens on local noise levels, water supplies, and public utility grids that require specialized mitigation.

B. Noise Performance and Acoustic Mitigation Standards

1. Permissible Continuous Sound Levels:
No High-Density AI Data Center facility shall emit continuous noise that exceeds the following limits when measured at or beyond the property line of the sending parcel:

• At Residential, Rural, or Mixed-Use District Boundaries: Maximum sound levels shall not exceed 50 dBA during daytime hours (7:00 AM to 10:00 PM) and 40 dBA during nighttime hours (10:00 PM to 7:00 AM).

• At Commercial or Industrial District Boundaries: Maximum sound levels shall not exceed 60 dBA at any time.

2. Low-Frequency and Tonal Adjustments (The "Hum" Provision):
To prevent continuous, low-frequency occupational or residential sleep disruption, the facility shall be prohibited from generating audible pure-tone, narrow-band, or low-frequency noise that exceeds ambient background levels at adjacent properties. If the noise source emits a continuous "pure tone" (such as a hum, whine, or buzz from a liquid cooling pump, chiller, or electrical transformer), the permissible limits outlined in subsection (B)(1) shall be reduced by 5 dB across all metrics.

3. Pre-Construction Acoustical Modeling:
Applicants for a High-Density AI Data Center must submit a predictive sound study prepared by a licensed third-party acoustical engineer. This model must simulate maximum load operations (100% computational load running simultaneously with peak summer cooling demands) and demonstrate compliance at all property lines.

4. Generator Testing Restrictions:
Emergency backup diesel generators must be fully enclosed in sound-attenuating structures rated to limit sound to 70 dBA when measured at 23 feet. Routine maintenance and load-testing of backup generators are strictly limited to weekdays (Monday through Friday) between 10:00 AM and 4:00 PM.

C. Environmental Siting and Setback Requirements

1. Minimum Structural Setbacks:
To provide passive physical attenuation for noise and visual blight, all primary data hall structures, mechanical cooling towers, and on-site electrical substations must adhere to the following minimum setbacks:

• From Residentially Used or Zoned Property, Schools, Daycares, or Public Parks: A minimum setback of 1,000 feet from the nearest property line.

• From Commercial District Boundaries: A minimum setback of 300 feet from the nearest property line.

• From Industrial Property Lines (Internal to Tech Parks): A minimum setback of 100 feet.

2. Mandatory Vegetative and Acoustic Buffering:
The 1,000-foot residential buffer zone must include an earthen berm with a minimum height of 8 feet, designed to deflect ground-level directional sound upwards. The berm must be planted with at least three staggered rows of approved evergreen trees (minimum height of 8 feet at installation) to provide a continuous, year-round visual and acoustic screen.

3. Cooling Infrastructure Environmental Restrictions:

• Banning Open-Loop Evaporative Systems: High-Density AI Data Centers are strictly prohibited from utilizing open-loop cooling systems that consume and evaporate local potable water supplies.

• Closed-Loop Mandate: All cooling systems must be closed-loop liquid-to-air, direct-to-chip liquid cooling, or full immersion cooling architectures that recycle 100% of internal working fluids.

D. Thermal Plume and "Data Heat Island" Countermeasures

1. Vertical Exhaust Velocity and Dispersal Mandates:
To prevent the formation of horizontal thermal plumes that travel downwind into adjacent neighborhoods, all rooftop or ground-mounted heat rejection equipment utilizing forced-air circulation must vent exclusively in a vertical direction.

• Mechanical exhaust fans must maintain a minimum continuous vertical velocity of 25 feet per second during peak thermal load.

• Decorative parapet walls or solid architectural screening structures that enclose rooftop cooling units are strictly prohibited if they trap or deflect exhaust air horizontally. Visual screening must use open-air, high-porosity louvers that permit immediate atmospheric mixing and vertical heat escape.

2. Computational Fluid Dynamics (CFD) Thermal Modeling:
Prior to site plan approval, applicants must submit a microclimate CFD Thermal Plume Simulation. The model must simulate ambient summer conditions (defined as the local 10-year historic peak temperature) with the data center running at 100% capacity. The simulation must demonstrate that the facility’s waste heat exhaust will not raise the ambient air temperature by more than 1.0°F (0.55°C) at any residential property line or within five city blocks of the facility.

3. District Heat Recovery Option (Waste Heat Capture):
To actively reduce the volume of heat vented into the atmosphere, developers are strongly encouraged to implement Waste Heat Recovery systems. If the developer provides an engineering plan to redirect a minimum of 30% of the facility's low-grade waste heat to a municipal or third-party industrial use—such as district heating for adjacent commercial spaces, agricultural greenhouses, or public facilities—the 1,000-foot residential setback requirement outlined in subsection (C)(1) may be reduced to 600 feet via a Special Use Permit.

4. Albedo and Roof Material Standards (Solar Heat Gain Mitigation):
To counteract the physical building's contribution to the urban heat island effect, data halls must minimize solar heat retention:

• Cool Roof Mandate: Roof surfaces must utilize materials with an initial Solar Reflectance Index (SRI) of at least 82 for low-sloped roofs.

• Pavement Mitigation: At least 50% of all on-site parking lots and service roads must use high-albedo permeable pavers or concrete coatings with a solar reflectance of 0.33 or higher.

E. Post-Construction Compliance Monitoring, Enforcement, and Penalties

1. Mandatory Post-Construction Acoustic and Thermal Audits

• Initial Compliance Window: Within ninety (90) days of receiving a Certificate of Occupancy, and while the facility is operating at a minimum of seventy-five percent (75%) of its designed computational capacity, the operator shall fund an independent compliance audit.

• Independent Execution: The audit must be conducted by a licensed acoustical engineer and a certified microclimate meteorologist selected from a list of pre-approved county/city vendors, paid for via an applicant-funded escrow account.

• Testing Protocols: Acoustic measurements must be captured over a continuous forty-eight (48) hour period to capture night and day variance. Thermal plume measurements must be conducted during afternoon hours when ambient temperatures exceed 85°F to verify compliance with the 1.0°F downwind boundary limit.

• Ongoing Verification: Following the initial audit, the operator must submit an annual compliance report containing matching metrics on the anniversary of the facility’s opening.

2. Notice of Violation and Cure Period

• If a city/county enforcement officer or the independent auditor determines that the facility has exceeded the noise limits (Subsection B) or the thermal plume limits (Subsection D), the Zoning Administrator shall issue a formal Notice of Violation (NOV).

• Cure Timelines: Upon receipt of an NOV, the operator shall have thirty (30) calendar days to implement mitigation measures (such as adjusting fan speeds, installing acoustic baffling, or throttling server capacity) to bring the facility back into compliance.

3. Civil Penalties and Daily Fines
If the operator fails to correct the violation within the 30-day cure period, or if a subsequent audit shows ongoing non-compliance, the city/county shall assess the following cumulative civil penalties:

• Noise Violations (Exceeding dBA or Low-Frequency Limits): A fine of $5,000 per day for the first fifteen (15) days of ongoing non-compliance, escalating to $10,000 per day for every day thereafter.

• Thermal Plume Violations (Exceeding the 1.0°F Downwind Margin): A fine of $7,500 per day for the first fifteen (15) days of ongoing non-compliance, escalating to $15,000 per day for every day thereafter.

• Failure to Fund or Submit Annual Audits: A flat penalty of $2,500 per day until the certified data is fully submitted to the zoning office.

4. Mandatory Computational Throttling and Order to Cease Operations

• Proportional Throttling: If any thermal or acoustic violation continues past sixty (60) days from the initial NOV, the Zoning Administrator shall issue a Mandatory Throttling Order. The facility must immediately reduce its active electrical consumption (Megawatt draw) by a minimum of twenty-five percent (25%) every seven (7) days until physical testing proves the environmental metrics have dropped back below the maximum legal thresholds.

• Revocation of Special Use Permit / Shutdown: Continued non-compliance after ninety (90) days from the initial NOV, or a refusal to comply with a Throttling Order, shall constitute a public nuisance and grounds for the immediate revocation of the facility’s Special Use Permit or Certificate of Occupancy. The city/county attorney may seek an injunction in North Carolina Superior Court to disconnect the facility from the utility grid until full structural remediation is completed.

F. Real-Time Public Transparency and Community Dashboards

1. Mandatory Continuous Monitoring Network Infrastructure
Prior to the issuance of a Certificate of Occupancy, the data center operator shall install and maintain a permanent network of environmental sensors along all exterior property lines. The selection, placement, and calibration of these sensors shall be approved by the [City/County] Engineering Department and must meet the following criteria:

• Acoustic Sensors: A minimum of four (4) permanent Class 1 sound level meters must be placed along the property boundaries, with at least two (2) positioned on the property lines facing the closest residential zoning districts or structures. Sensors must record continuous dBA levels and low-frequency tonal spikes.

• Thermal Sensors: A minimum of four (4) high-accuracy, shielded ambient temperature sensors must be deployed. Two (2) must be located at the facility's perimeter to track immediate property line temperatures, and two (2) must be placed at off-site, downwind community locations (within 1,500 feet of the facility) to dynamically track the 1.0°F downwind thermal plume impact against baseline regional weather data.

2. Public-Facing Digital Dashboard Mandate
The telemetry and raw data from the monitoring network must be streamed instantly to a dedicated, public-facing website hosted and funded entirely by the data center operator.

• Real-Time Data Streams: The web dashboard must update visual readouts every five (5) minutes, displaying live decibel levels (dBA) and temperature deltas.

• Historical Transparency: The public dashboard must provide an archive allowing neighbors to view and download historical daily, weekly, and monthly averages for at least the preceding rolling twenty-four (24) months.

• Direct Reporting Link: The website must feature a highly visible, automated link allowing community members to submit immediate non-compliance alerts directly to the [City/County] Zoning Enforcement division if data spikes occur.

3. Automated Neighborhood Notification System
The public dashboard software must feature an automated, real-time alert trigger connected directly to the [City/County] Zoning Administrator's office.

• Trigger Conditions: If any sensor records a spike exceeding the daytime noise cap by more than 3 dB, the nighttime noise cap by more than 2 dB, or the thermal plume cap by more than 0.5°F, for a continuous duration of fifteen (15) minutes or longer, an automated alert system must log the event.

• Immediate Logging: The logged event will act as an official warning stamp, alerting both the facility engineers to scale back operations immediately and city/county staff to initiate an enforcement review.

4. Maintenance and Tampering Penalties:

The data center operator is solely responsible for the continuous uptime, internet connectivity, and calibration of the public dashboard system.

• Uptime Standard: The dashboard must maintain a minimum of 98% monthly uptime.

• Downtime Penalties: Any unexcused dashboard blackout or sensor failure lasting longer than forty-eight (48) consecutive hours shall result in a fine of $2,000 per day until the public feed is fully restored.

• Tampering Consequences: Any evidence of data manipulation, sensor shielding, or artificial calibration adjustments by the operator shall result in an immediate Notice of Violation and a flat $50,000 penalty, alongside an immediate audit of the physical facility by a third-party investigator.

Ron Humphries is a retired NCDOT Division Design Engineer and a Professional Land Surveyor (Retired). He has over 20 years of experience serving on City of Kings Mountain Planning and Zoning Boards and Boards of Adjustment.