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Council reviews proposed UDO standards for data centers, including separation, noise and water safeguards
Summary
City staff presented draft Unified Development Ordinance standards that would set building separations, buffers, noise-study requirements and water/wastewater connection mandates for data centers; Council questioned enforcement, fines and utility capacity assurances.
Sanford City Council and staff on April 14 reviewed draft Unified Development Ordinance (UDO) standards aimed at regulating data centers in Lee County and adjacent jurisdictions, with staff outlining proposed distance, noise, utility and environmental safeguards.
Community Development Director Marshall Downey said staff began reviewing standards in October 2025 after learning a data center was being considered in Lee County and that draft ideas were presented to a Joint Planning Commission and the Lee County Board of Commissioners. ‘‘We incorporated input from the Joint Planning Commission and Lee County into the draft,’’ Downey said. Zoning Administrator Thomas Mierish summarized the research, noting that many jurisdictions either allow data centers by right in light industrial districts or require conditional use approvals.
Mierish described key elements of the draft UDO 5.52: definitions for data-center and crypto-mining operations; acoustic metrics; a 500-foot building-to-building separation from existing residential structures; where adjoining property is residential, a 150-foot building-to-property-line setback and a 100-foot landscape buffer; a maximum building height reviewed with fire officials at 75 feet; and a requirement that principal structures be set back at least 100 feet from a public road in some circumstances. He also said applicants would be required to submit a photometric plan, a master plan, and a civil-engineer survey showing distances to neighboring properties.
On utilities and environmental protections, staff proposed that data centers must connect to municipal water and wastewater systems (the draft explicitly prohibits pulling water from groundwater or surface waters and prohibits discharge to septic systems), and must present ‘‘will serve’’ letters from TriRiver Water and electric providers for capacity. Downey and Mierish said the draft intends to rely on existing NC Department of Environmental Quality and Environmental Protection Agency regulations in addition to land-use standards.
To limit audible impacts, the draft would require a noise study prepared by a third-party, licensed acoustical engineer and include restrictions on generator usage and testing; it also includes a complaint-based provision allowing the city to require additional testing at the operator’s expense. Council discussed enforcement: the draft carries an initial $10,000 fine per violation with additional fines if violations are not addressed during an abatement period; staff said the Lee County attorney had concerns about an earlier $10,000-per-day formulation and the figure was changed.
Council members asked about the source of electricity and backup power. Mierish confirmed data centers in the draft are allowed a single source of electric energy and that diesel generators as a routine second source would be restricted except for use during outages. Assistant City Manager Vic Czar confirmed staff expects operators to comply with distribution and collection regulations to avoid chemical releases to TriRiver Water’s system.
The session was a review and staff said the draft will be shared with Lee County for any further edits; no regulatory action was taken at the work session. The most likely next steps are additional staff refinements and formal consideration on a Council or joint planning agenda where a public hearing would be scheduled.
