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The Data Center Divide

Elizabeth City

Slightly Pro-Data Center Policies

North Carolina offers eligible data centers conditional tax savings on equipment, but electricity is no longer tax-exempt after the transition, raising costs for affected operators. The state also requires quarterly electricity-tax reporting; task forces study energy and water impacts but impose no direct operating rules.

Rating and summary from North Carolina statewide as there are no scored current or future laws outside temporary restrictions for Elizabeth City.

pending · City of Elizabeth City
Would amend Elizabeth City’s Unified Development Ordinance to define data centers and permit them only in the I-1 and I-2 industrial districts with a Council Use Permit, while establishing standards for development, permitting, separation, noise, water and energy use, buffering, safety, and reuse.Elizabeth City Unified Development Ordinance Amendment Concerning Data Centers (Proposed, 2026)

What this means

The proposal would limit data centers to industrial zones and require a Council Use Permit, large separation distances, strict noise and generator rules, and detailed water, energy, and decommissioning plans. These conditions could make projects significantly more costly and difficult, though they would still be allowed in some locations.

People behind it

  • Proposed TA 07-26 and prepared the text amendment to define and regulate data centers in the Unified Development Ordinance.

  • City Manager and co-author of the memorandum calling for a public hearing on TA 07-26.

  • Director of Development Services and co-author of the memorandum calling for a public hearing on TA 07-26.

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  • Reviewed TA 07-26 and recommended its approval.

  • Scheduled the public hearing and is responsible for receiving public comment and considering adoption of TA 07-26.

Restrictions & requirementsHide restrictions & requirements31
  • Data centers are allowed only in Light Industrial (I-1) or General Industrial (I-2) districts and require a Council Use Permit.

  • A data-center site must be at least 500 feet from parks, trails, waterbodies, environmentally sensitive lands, wildlife habitats, K-12 schools, hospitals, daycares, nursing homes, and all residentially zoned parcels.

  • Data centers are prohibited in wetlands requiring Section 404 permits and within 100-year floodplains.

  • Data-center buildings, associated equipment, and accessory structures must be set back at least 200 feet from every lot line.

  • A minimum of one parking space per employee on the largest shift, plus three visitor spaces, is required.

  • Substations, generators, electrical yards, mechanical yards, and other exposed equipment cannot be placed between the primary data-center building and a public road or right-of-way and must be screened from adjacent streets, trails, and parks.

  • Lighting must use Dark Sky design, produce no spillover onto surrounding properties or streets, and use fixtures, hoods, and poles with a permanent black finish.

  • Cooling and ventilation equipment must use a closed-loop or recycled-water system.

  • Substations, mechanical equipment, generators, and other power-supply equipment must be located in I-1 or I-2 districts, at least 50 feet from public rights-of-way, screened by an at least eight-foot decorative brick-faced wall, and kept separate from vehicle storage and service equipment.

  • Noise may not exceed 65 decibels during the daytime, from 7:01 a.m. to 9:59 p.m., or 55 decibels at night, from 10:00 p.m. to 7:00 a.m., as measured at any property line.

  • Permanent and temporary generators must meet EPA New Source Performance Standards at least at Tier 4 emission levels.

  • Generator testing is limited to 10 hours per month and may occur only from 9:00 a.m. to 5:00 p.m., Monday through Friday.

  • Generators must be fully enclosed within sound-attenuation walls, and generator testing logs must be submitted in an annual compliance report.

  • Except for testing or commissioning, generators may be used only for backup or emergency purposes and may not operate for more than 72 consecutive hours.

  • Data centers must provide street-side landscaping buffers, including specified canopy trees, ornamental trees, and shrubs based on the length of the buffer.

  • A minimum 25-foot perpetually maintained buffer yard is required along property lines adjoining non-residential uses, with specified canopy trees, understory trees, shrubs, and groundcover or mulch.

  • As an alternative property-line buffer, the owner may be required to install and maintain a 10-foot landscaped perimeter buffer with two staggered rows of evergreen trees and a dense shrub row; existing vegetation may substitute only if the Zoning Administrator finds it at least as effective.

  • Building façades visible from public streets must break up their mass at least every 100 horizontal feet through specified changes in height, step-backs, recesses, materials, patterns, textures, or colors, and must have a differentiated main entrance.

  • Certain façade materials, including aluminum siding, unfinished or untreated wood siding, plywood siding, vinyl siding, scored stucco that imitates brick or stone, and foam-based products, are prohibited.

  • Applicants must provide written confirmation that applicable utility providers have agreed to provide service and must comply with all applicable laws, regulations, and ordinances.

  • A noise-impact assessment is required during permitting, including pre-operation and background noise measurements and mitigation measures demonstrating compliance with the daytime and nighttime noise limits.

  • Applicants must submit a water-conservation plan addressing water scarcity, public-service impacts, conservation measures, drought contingencies, low-water or water-free cooling systems, and compliance with applicable state and regional requirements.

  • Applicants must submit water-demand projections identifying the water source, average daily withdrawal, and maximum expected withdrawal.

  • An Energy Consumption Sustainability Plan must estimate pre-construction and operational energy loads, peak demand, infrastructure-mitigation strategies, and alternatives to additional transmission lines.

  • The energy and sustainability requirements call for on-site sustainable water or power alternatives, such as solar panels, cisterns, or small-scale wind turbines, to offset at least 10% of total power or water usage.

  • Applicants must submit a decommissioning plan prepared by a registered professional engineer covering removal costs, salvage value, removal methods and schedules, site restoration, and recycling or responsible disposal of electronic equipment.

  • Before construction begins, an approved applicant must provide a performance bond, letter of credit, or other financial assurance sufficient for a third party to decommission the site if the applicant defaults.

  • Applicants seeking a Council Use Permit must hold a neighborhood meeting for property owners within 500 feet, with mailed notice at least 14 days before the meeting, and submit documentation of the meeting and concerns raised.

  • Minor, medium, and major/hyper-scale data centers are subject to size and power thresholds: minor facilities are under 20,000 square feet and under 5 megawatts, medium facilities are 20,000 to 99,999 square feet and/or 5 to 75 megawatts, and major facilities exceed 100,000 square feet and/or 75 megawatts.

  • A facility that otherwise qualifies as a minor data center but requires a substation is classified as a medium data center.

  • A data-center campus is defined as a single development containing more than one data center with at least 500,000 square feet of total building area, bringing the campus within the data-center regulatory framework.

Benefits & exceptionsHide benefits & exceptions7
  • The permitted-use table creates an approval pathway for minor, medium, and major data centers in the I-1 and I-2 industrial districts through a Council Use Permit, rather than treating them as prohibited uses. I-1 and I-2 districts, with a Council Use Permit

  • The definition of data center is broad and covers many types of digital-processing and storage operations, including server farms, bitcoin mining, cryptocurrency processing, artificial-intelligence processing, cloud computing, and telecommunications co-location. any other term applicable to facilities which are used for such purposes shall be deemed to be a data center

  • The measure expressly recognizes and allows numerous accessory structures and infrastructure supporting a data center, including generators, substations, air handlers, cooling and water facilities, pump stations, security structures, and electric, gas, water, wastewater, and stormwater infrastructure. Data Center Accessory Use/Structure

  • The rules allow data-center-related substations, mechanical equipment, generators, and other power-supply equipment in the I-1 and I-2 districts, subject to location and screening requirements. shall only be permitted in the I-1 and I-2

  • The measure permits backup generators as part of data-center operations, subject to emissions, testing, enclosure, and operating-hour limits; emergency use is allowed, but generally limited to 72 consecutive hours. generator use is limited to backup/emergency use only

  • The application requirements establish a process for obtaining utility service by requiring written confirmation that applicable utility providers have agreed to provide service. utility service providers have agreed to provide service

  • The measure allows on-site renewable facilities, such as solar panels, rooftop cisterns, and small-scale wind turbines, to help satisfy the required sustainability plan, provided they offset at least 10 percent of total power or water usage. solar panels, rooftop cisterns, small-scale wind turbines

Sources

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