Data center expert urges Belmont to prepare zoning, noise and decommissioning rules

Ted McGavran, a consultant with Fundamental Data and a member of Belmont’s Environmental Sustainability Board, told the City Council on July 6 that municipalities should prepare now for data‑center proposals by defining permitted uses, requiring developers to pay for infrastructure upgrades and writing noise and decommissioning rules.

McGavran, who identified himself as a licensed professional engineer, described three types of facilities: large hyperscalers that need high‑capacity transmission and significant water for closed‑loop cooling; mid‑range “edge” centers that can fit on a few acres and use far less water; and crypto‑mining operations, which he called transient and typically noisier.

“There really are three types of data centers that you want to look at,” McGavran said. “The edge data centers are about 2 to 50 megawatts…they don’t require the big generation and the big transmission. Crypto miners…are about as low rent as you can get.”

Why it matters: Council members said Belmont does not currently have the gas and transmission infrastructure to host hyperscale facilities and that short‑term crypto operations can leave sites vacant. McGavran recommended conditioning approvals so the city can require operators to fund grid, water and sewer upgrades up front and to adopt decommissioning obligations for operators that lease for short terms.

Council discussion focused on the practical differences among the three types of facilities and the city’s regulatory options. Planning staff said the consultant’s original six‑month timeline for a Center City Small Area Plan is feasible if work starts in January or February and noted that Arcadis — the consultant on the small‑area plan — expects completion nearer April because the scope was expanded.

On utilities and costs, McGavran said a 10‑megawatt edge site can involve $50 million to $100 million of capital equipment and typical equipment turnover can occur every three to five years. He said large hyperscalers can require hundreds of megawatts and may need new transmission or onsite generation, which would be difficult in Belmont without major infrastructure investments.

“Duke is going to run the show with data in this state,” he said, stressing that developers will typically pay for upgrades but that council should require that in advance. He also urged the council to consider a noise ordinance and limits on when diesel backup generators may be exercised: “You can restrict time of operation for things like that unless it’s an emergency condition.”

Council members asked staff to research model ordinances and regulatory approaches used by other jurisdictions — including decommissioning requirements, conditional zoning, noise measurement and procedures for requiring infrastructure upgrades — and to report back with recommendations. Staff noted examples exist in other North Carolina towns and counties and suggested reaching out to the League of Municipalities and the School of Government for guidance.

Next steps: Planning staff will review model ordinances, consult peer jurisdictions and return to council with proposed zoning language and potential noise and decommissioning provisions for future consideration.