Planning staff urges ban on large data centers, and new spacing rules for gas stations and car washes

City planning staff presented zoning code text amendments on first reading that would add distance and density limits for new gas stations and car washes and would define and prohibit industrial-scale data centers as a primary use in Dayton.

Jeff Green of the planning department told the commission the package is intended to improve land-use outcomes at intersections and commercial corridors, and to protect residential areas from vehicle-centered uses. He summarized three main changes: a cap of two gas stations within 1,500 feet at an intersection (additional stations would face variance or public hearings), a similar 1,500-foot spacing rule for car washes, and aesthetic standards requiring canopies to reflect adjacent building materials. Green said those rules would apply to new facilities and would aim to preserve redevelopment options and neighborhood quality.

The most contested change was the proposed definition and regulation of ‘‘data centers.’’ Green said staff plans to replace the current cryptocurrency-mining definition with a broader data-center definition that would capture whole-site or large internal uses intended primarily for server operations. Planning staff recommended prohibiting data centers as a primary use because of wide-ranging regional impacts Green cited — notably long-term land use, electricity and water demand and continuous noise from equipment cooling systems — and because such facilities “do not produce the sort of jobs for the amount of space they take up.” He told the commission, “banning a use is a big step and there should be justification behind it,” but staff concluded a ban is warranted at this time.

Commissioners pressed staff on the scope of the ban. Commissioner Fairchild asked whether the definition could unintentionally prohibit accessory server rooms used by hospitals and other large employers; Green replied accessory servers and backup systems for an existing business would be exempt and the prohibition targets a primary-use data center or industrial-scale server operation.

Green said plan board reviewed the package and recommended it with edits; plan board’s April vote on the text amendments was recorded as 6–2 in favor. He also noted the city received at least one written correspondence (Old North Dayton) in support and otherwise mostly verbal feedback through plan board and staff outreach.

During the public hearing, many residents spoke to the zoning package. Supporters told the commission they favor restrictions on overconcentration of service uses and limits on data centers; other speakers pressed for careful community engagement during implementation.

The commission closed the public hearing, introduced ordinance 32194-26 (first reading) to repeal, amend, and enact sections of Dayton’s zoning code, and voted to move the matter forward for further consideration and subsequent readings.

Next steps: the measure remains in the ordinance process after first reading; staff will share community engagement schedules for the US35 planning work and coordinate follow-up briefings requested by commissioners.