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Olive Branch staff moves to tighten data‑center rules; residents press for larger setbacks and stronger enforcement

Olive Branch Planning Commission · June 9, 2026
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Summary

Staff presented draft zoning amendments to define and regulate data centers, restrict smoking near parks and reduce sign heights. The draft would move data centers from an implicit permitted classification into a conditional‑use track in industrial districts and require detailed utility, noise and heat studies. Public commenters urged stricter setbacks and decommissioning requirements, and commissioners directed staff to refine the draft.

Planning staff presented proposed amendments on June 9 that would add definitions to the zoning code, impose a 500‑foot restriction on smoking/vaping near public parks, reduce permitted sign heights in certain commercial districts, and—most prominently—move "data centers" out of an implicit permitted use into a conditional‑use process in specific industrial districts. The draft would require applicants for a data‑center conditional use to submit an infrastructure plan showing power and cooling capacity, generator use and limits, water demand and recycling plans, photometric plans, acoustic modeling (including low‑frequency and tonal analysis), and setbacks from sensitive uses such as residences, schools, hospitals, parks and wellheads.

Staff emphasized that the intent is to close a loophole: because a data center can functionally appear as a storage warehouse, existing code could allow a large facility by right. "What the city is doing is to prevent that from happening," staff said, explaining the move to require conditional‑use review so that the public and decision‑makers can evaluate infrastructure, noise, heat and water impacts before a facility is built.

Public commenters—especially residents from neighboring South Haven and other areas with recent data‑center projects—expressed strong concerns about continuous low‑frequency noise, generator testing and hours, large water withdrawals, waste heat, local air emissions from backup turbines, decommissioning and the adequacy of enforcement. "I strongly recommend do not allow a data center anywhere in Olive Branch," said Jason Haley, a South Haven resident who described ongoing noise and health impacts near existing facilities. Other residents urged extending minimum separation distances (some asked for 2,000 feet or more), requiring independent third‑party studies, and adding decommissioning bonds and firm enforcement triggers (including revocation of a conditional use if post‑construction monitoring shows violations).

Commissioners debated several technical and policy tradeoffs: whether to adopt a tiered approach that distinguishes small internal or campus‑scale server sites from hyperscale / AI facilities, how large a setback to require, and what testing and enforcement regime would be feasible. Staff noted the draft already contemplates robust testing and monitoring requirements (day/night acoustic modeling, atmospheric propagation, C‑weighted low‑frequency spectra, heat‑release limits at property lines) and said the draft will be revised; commissioners asked staff to return with additional refinements, including clearer language on decommissioning, generator testing windows, and an explicit approach for tiering or otherwise distinguishing small vs. hyperscale data centers.

What this means: The staff proposal marks a shift toward more cautious oversight of data‑center uses in Olive Branch by placing them under conditional‑use review and by spelling out technical requirements intended to avoid the problems seen in other jurisdictions. The drafting process is ongoing; staff will refine the draft and return to the commission for a July hearing and recommendation to the Board of Aldermen.

(Report based on staff presentation and public‑hearing comments recorded in the meeting transcript.)