Provo Council directs staff to draft overlay zoning for data centers, forms advisory committee

The Provo City Council on Aug. 19 directed city staff to draft overlay-based zoning and related legislation for data centers and to convene a committee to help develop detailed standards, after a staff presentation on draft policy goals and zoning changes. The motion passed 7-0.

Councilors said the measure is intended to give the city more control and public review over where large data centers locate and what environmental, infrastructure and financial safeguards they must meet. Council Executive Director Justin Harrison and City Planner Hannah Saltz presented a draft high-level policy and proposed zoning changes that would sharply narrow where data centers are permitted and set application requirements.

The council acted after staff described a two-tier approach tied to project electrical load. The draft treats facilities under 5 megawatts as generally manageable under existing procedures, treats projects from 5 to 50 megawatts as subject to an administrative review with specified development standards, and treats projects over 50 megawatts as subject to conditional-use review and additional requirements that reflect utility and Utah Municipal Power Agency (UMPA) policies. "Data centers are currently permitted in 17 zones that total just under 3,000 acres," City Planner Hannah Saltz said; the draft would limit allowable acreage to about 677 acres in two zones, she said.

Staff outlined specific measures the draft would require developers to provide, including a project narrative and phased construction timeline, power-load and generation plans for UMPA review, evidence of compliance with federal and state environmental and air-quality regulations, emissions reporting and auditing, noise and vibration studies, water-consumption plans and end-of-life handling for hazardous waste. The draft also includes financial safeguards aimed at preventing stranded assets or costs being shifted to Provo ratepayers and UMPA member cities, and language prohibiting "islanding" (isolated generation that could leave the city with stranded equipment).

Saltz told the council that state law now requires data centers to provide on-site battery backup for any renewable energy generated on-site, a requirement staff said makes purely on-site renewable supply impractical for 24/7 operations. "The state did recently pass a law that requires data centers to have 100% battery backup for any renewable energy generated on-site," Saltz said. She also gave a rough emissions example used in staff discussion: "It's roughly 80 to 120 CO2e tons per megawatt-hour," a figure staff cited when describing how a 40-megawatt facility's annual emissions might be estimated.

Staff and councilors debated several procedural options for oversight. Under the draft, facilities under 50 megawatts would be processed administratively (staff review) and those over 50 megawatts would require a conditional-use review by the Planning Commission. Several councilors said they preferred an overlay or a rezoning route so major projects would come to the council for public consideration rather than be approved administratively. Councilors also discussed a possible moratorium or limiting permitted zones while an overlay is developed to avoid vesting large projects under current rules.

Council members raised questions about the 50-megawatt breakpoint. Scott Henderson (staff) explained the practical difference: projects up to about 50 megawatts can generally be obtained from the wholesale market and delivered to Provo with relatively limited infrastructure changes, while larger projects are likely to require on-site generation and more extensive substation and transmission upgrades.

Planning staff said the proposed zoning change would introduce a 200-foot minimum setback from schools, parks and residential properties for data centers; that buffer could expand to 500 feet where a project requires emissions credits under regional air-quality rules. Saltz said the draft would also require developers to identify "opportunities for renewable energy investment or water-use reduction," and to describe why particular technologies or strategies were or were not feasible.

After discussion, a council member moved (motion text: see actions array) to direct staff to prepare legislation that would move toward an overlay-based approach and to form a committee to help flesh out the details; the motion was seconded and approved on a roll call vote of 7-0 (Hanley, Christiansen, Broadbent, Garrett, Whipple, Hogan and McKay voting yes). Councilors instructed staff to return with draft legislation and to coordinate with UMPA and other departments on technical details.

Next steps announced during the meeting included staff taking the draft to a Planning Commission study session and returning to the council with proposed overlay/zoning legislation and proposed standards for committee review and public comment.

(Reporting note: direct quotations and technical figures in this article are drawn from the Aug. 19 Provo City Council work session presentation by city staff.)