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The Data Center Divide

Grayson County

Neutral Data Center Policies

Grayson County allows data processing and storage facilities in industrial districts without a special-use permit, but they must follow ordinary zoning rules and remain limited to industrial-zoned land.

current law · Unincorporated areas
The Grayson County Zoning Ordinance lists data processing/storage facilities as a permitted use in the Industrial District, allowing qualifying facilities to proceed without a special use permit under the existing by-right framework.Grayson County Zoning Ordinance, Article 4, Industrial District permitted uses

What this means

The measure allows data processing and storage facilities in industrial districts without a special-use permit, which modestly helps development. They still must follow ordinary zoning rules and are limited to industrial-zoned land, with no special incentives.

People behind it

  • Prepared the Grayson County Zoning Ordinance and reviews zoning amendments and special-use applications.

  • Approved the ordinance and serves as the governing body responsible for adopting zoning text amendments, rezoning applications, and special-use permits.

  • Administers and enforces the ordinance, interprets its provisions, reviews applications, and issues zoning permits.

Restrictions & requirementsHide restrictions & requirements7

  • Data processing and storage facilities are expressly listed as permitted uses only in the Industrial District, so a data center generally must be located on property zoned Industrial or obtain a zoning map amendment. Data Processing/Storage Facilities

  • A zoning permit is required before placing or constructing a data-center building or other structure, and before obtaining a building permit. The listed exemptions do not include data centers. A zoning permit shall be obtained for any structure

  • A principal data-center building must satisfy at least one access standard, including 30 feet of frontage on a state-designated public road, a 30-foot legal right-of-way to such a road, or qualifying subdivision, pre-1998 parcel, or limited-access-parcel status. The access requirement to build a principal structure

  • In the Industrial District, the required lot area is determined by the space needed to provide services and separation distances for the proposed industrial use; rezoning to Industrial requires submission of a site plan, industrial-use list, processes, and potentially hazardous materials for Planning Commission review. Minimum lot sizes for Industrial district

  • Industrial data-center structures must be at least 35 feet from the centerline of a public road, or 15 feet from the design radius of a cul-de-sac. Street Setback

  • Industrial structures must generally be at least 100 feet from adjoining property lines unless the adjoining property is also Industrial; structures containing High Hazard Group H materials must meet the minimum setback determined by the Building Official. Yard setback Structures that store or use hazardous materials

  • A data center must comply with all other applicable local, state, and federal requirements, which may include building, floodplain, erosion and sediment control, stormwater, subdivision, VDOT, health, environmental, and utility requirements. It is the responsibility of the property owner to understand how local, state and federal codes may apply

Benefits & exceptionsHide benefits & exceptions5

  • The Industrial District permits call centers and data processing/storage facilities by right, providing a zoning pathway for data center development and operation without a Special Use Permit.

  • The Industrial District permits commercial warehouses and commercial storage units that do not contain hazardous materials and are not classified as High Hazard Group H, which may support data center storage or related operations when the use fits those classifications.

  • The Service District permits transmission towers and other infrastructure for electric, radio, telephone, and other necessary public services by right, supporting utility infrastructure associated with data center operations.

  • The Service District allows electric power generation, transmission, booster, and relay stations by Special Use Permit, providing a zoning pathway for electrical infrastructure that may serve data centers.

  • Industrial District structures generally may be located at least 100 feet from adjoining property lines, unless the adjoining property is also Industrial-zoned, allowing reduced separation where industrial uses are adjacent.

Sources

Specific to Grayson County only.

pending · County measure
A request was made for the Grayson County Board of Supervisors to consider an immediate 180-day moratorium on data centers and related facilities while the county reviews its zoning ordinance and potential impacts.Grayson County Board of Supervisors, Proposed 180-Day Data Center Moratorium Request (May 28, 2026)

What this means

The proposed 180-day moratorium on data centers would temporarily pause data-center development, creating a substantial delay for projects during that period. It is not a permanent ban, and the sources do not show that existing centers would have to stop operating.

Sources

pending · Unincorporated areas
Grayson County is developing a data-center-specific zoning policy, not an adopted ordinance.Grayson County Board of Supervisors and Planning Commission Joint Meeting, Data Center Draft Policy for Review (August 18, 2026)

What this means

The proposal would make data centers harder to approve: instead of being allowed by right in industrial zones, they would need a special-use permit, and applicants would have to address utility capacity, economic benefits, and impacts such as noise and lighting (draft policy). They would still be possible in industrial areas, so this is a meaningful added hurdle rather than a ban.

People behind it

  • Reportedly voted unanimously to direct the Planning Commission to develop the permit requirement.

  • Presents the Data Center Draft Policy for Review.

  • Drafting is being done with the Berkley Group.

Restrictions & requirementsHide restrictions & requirements2

  • The proposal would change it from a by right to a special use permit.

  • Reported draft criteria include proof of utility capacity at applicant expense and mitigation measures for noise, lighting, and visual impacts. These are proposed, not binding requirements.

Benefits & exceptionsHide benefits & exceptions1

  • The draft would preserve a route for approval rather than impose a ban: staff described the aim as not to automatically approve or prohibit data centers.

Sources

pending · Unincorporated areas
On October 8, 2026, the Grayson County Board of Supervisors directed that the county’s developing data-center policy require a special use permit for proposed data centers in industrial sites.Grayson County Board of Supervisors, Data Center Special Use Permit Direction (October 8, 2026)

What this means

The current zoning ordinance lists data processing and storage facilities as permitted in industrial zones, but the proposed change would require a special-use permit and add standards for noise, setbacks, and battery use (industrial uses). That adds review, potential delays, and conditions before a data center can proceed, though the sources do not specify the final standards or say approval would be denied (proposed special-use permit rules).

People behind it

  • Directed staff and the Planning Commission to draft regulations requiring special-use permits for data centers.

  • Tasked with drafting the proposed data-center regulations.

  • Directed to help draft the proposed data-center regulations.

Show 1 more peopleShow fewer people

  • Consultant assisting with drafting the proposed regulations.

Restrictions & requirementsHide restrictions & requirements1

  • A zoning permit is required before a structure is placed or constructed, and before a building permit is issued; the zoning permit application fee is $15. Permit required before construction and the $15 application fee.

Benefits & exceptionsHide benefits & exceptions2

  • Industrial districts allow “Call Centers and Data Processing/Storage Facilities” as a permitted use, so a data center fitting that category does not need a special-use permit in that district. A zoning permit is still required, and the property must be in an industrial district. Call Centers and Data Processing/Storage Facilities

  • A lawfully established data center use that becomes nonconforming may continue if the Zoning Administrator confirms it existed before the applicable ordinance took effect and the conditions for continued use are met. The protection ends if the use is discontinued for more than 24 consecutive months. Existing nonconforming uses

Sources

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