Title
A legislative public hearing requested by the Chatham County Board of Commissioners to consider a temporary twelve (12) month moratorium on the permitting of data centers, data processing facilities, cryptocurrency mining operations, and any other associated uses within the unincorporated areas of Chatham County, pursuant to N.C.G.S. §160D-107
Abstract
Introduction & Background:
As digital infrastructure becomes increasingly vital to economic development, communities across the U.S. are seeing growing interest in data centers and cryptocurrency mining facilities. Chatham County anticipates more applications for this type of intensive use and needs the proper time to create adequate land use regulations to mitigate the negative impacts of data processing facilities and associated uses. A temporary twelve (12) month moratorium is the best course of action to ensure the proper care is given to researching and producing a sufficient and robust regulatory scheme.
The table of permitted uses in the zoning ordinance currently includes “Data processing, hosting and related services” as requiring a special use permit in the Heavy Industrial district unless connected to public water and sewer, then they are allowed by right. The ordinance does not define this use and the industry has changed significantly in recent years, so the ordinance needs to better align with current industry practices, and to specifically define cryptocurrency mining as a land use, separate and apart from data centers. Staff will also research definitions for the different types of data processing and mining operations.
Discussion & Analysis:
Data Processing Facilities is a broad term that doesn’t necessarily encompass all of the uses associated with data mining enterprises. These uses, while similar in appearance, have distinct operational characteristics and impacts. The three main types of data processing facilities are enterprise or internal data centers, colocation facilities, and hyperscale data centers. An enterprise data center is owned and operated by a single organization and can range in size from a server closet to a dedicated building. This would include the server room used by Chatham MIS.
Colocation facilities operate like multi-tenant buildings. Companies lease server space and space is required physical access to the servers as well. These facilities typically serve local customers in the area. This type of use would be considered a more traditional data center already defined and regulated in the zoning ordinance. Hyperscale facilities are the largest and most resource intensive. They support cloud services and increasing AI workloads. These facilities often require 100mw of power and 1-5 million gpd of water per day to ensure continuous operation of the thousands of servers. A hyperscale facility is how a cryptocurrency mine would be categorized.
A Crypto Mining Facility uses high-powered computers to verify blockchain transactions, consuming significant electricity resulting in heat and noise. Cryptocurrency mining requires considerable amounts of electricity usage, which can result in greenhouse gas emissions, as well as additional pollution, e-waste, noise, and other local impacts to residents and communities living near the mining facilities.
Many jurisdictions limit crypto mining facilities to industrial districts and enforce other supplemental performance standards. In addition to crypto mining facilities, Hyper Scale Data Centers, or Hyper Scale Data Processing Facilities support cloud and AI web services. AI uses GPUs, Graphics Processing Units which use more server space than traditional server farm facilities with CPU, Central Processing Units. A large-scale data center at the TIP site could include a structure over 100,000 square feet, with high energy and water demands for cooling and redundancy. Such sites typically have minimal employment but are significant boon to the tax base.
Shehabi et al, LBNL 2024
Berkely Lab created the 2024 US Data Center Energy Usage Report for the Department of Energy researching the amount of electricity needed to power data centers in the future, As the use of hyperscale facilities continues to grow, it is estimated that data processing facilities will make up 6-12% of the entire energy grid by 2028, as shown in the attached graph. The need for AI computing is exacerbating the amount of energy needed for the large-scale facilities at an alarming rate. AI computing can also increase the amount of energy needed for small scale facilities as well due to the ever-evolving technological advances in server capacity. The other graph shows the increase in electricity usage as the use of AI continues to expand.
Shehabi et al, LBNL 2024
This is one reason why the moratorium is needed to develop more robust measures for data facilities other than traditional setbacks and built upon area. A small-scale facility might start off as a 10,000 square foot server farm classified as a simple colocation facility. However, as technology advances the capacity for the servers in the facility could grow, which would then grow the need for water and power at the facility, negatively impacting the neighboring community in unforeseen ways.
How does this relate to the Comprehensive Plan:
This temporary moratorium is consistent with Plan Chatham, the adopted comprehensive plan, pursuant to economic development strategy 5.1 to increase job opportunities and tax base throughout the County, suitable industry targets should be matched with the most appropriate locations and sites, supporting the primary goal of preserving the rural character and lifestyle of Chatham County.
Budgetary Impact: N/A
Recommendation/Motion:
Hold the public hearing and vote on the moratorium.