Smyth County staff outline proposed zoning rules to allow data centers, cite tax and monitoring safeguards

Planning staff in Smyth County outlined a proposed zoning text amendment that would allow hyperscale data centers in certain districts only by special use permit, and described standards the county would impose if the ordinance is adopted.

Planning staff said the draft would require a 60-foot setback to the nearest property line and that "noise generated by the facility shall not exceed 55 decibels" at the property line, with additional tonal criteria for certain frequencies. Staff also said emergency backup generators would have to meet Tier 4 emissions standards and that applicants must work with the local water provider or, for wells and withdrawals, the Virginia Department of Health or the Department of Environmental Quality and submit approvals as part of the special-use review.

Why this matters: staff estimated the financial stakes for the county could be significant. Drawing on a field visit to Mecklenburg County, planning staff said a typical hyperscale campus there had a reported real-estate value of about $1 billion and "one data center alone could net 50% of the current tax revenue we receive from real estate." Using Smyth County's stated tax rate of $0.69 per $100, staff estimated a $1 billion campus could yield roughly $6.9 million in annual real-estate taxes, an amount staff cited as a driver for considering the ordinance.

The draft would not allow data centers by right. Staff said each application would have to go through the special-use permit process, including mailed notice to adjoining property owners, public hearing, property posting and a mandatory applicant-hosted community meeting in the immediate area before the hearing so neighbors could ask questions and developers could try to resolve issues early.

On monitoring and enforcement, county planners said construction-phase and post-occupancy checks are planned: a noise study is required before construction, post-construction noise shall be measured within 90 days of each phase's occupancy permit issuance, and then annually for 10 years with evaluations conducted during peak cooling months (June–August). Staff said applicants will be required to hire qualified acoustical engineers and that the county may pursue enforcement actions if limits are exceeded.

Residents raised concerns about water supply, vibration, nondisclosure agreements and secrecy in economic-development negotiations. A resident asked why the county would "shirk it off to the water supply outfits" instead of setting a fixed local limit; staff responded that capacity is site-specific and varies by provider—citing the town of Marion as having substantial capacity while other service areas have limited supply—and that providers often must approve any proposed withdrawals. On nondisclosure agreements, staff reiterated that this zoning amendment is limited to land-use rules; NDAs and incentive negotiations are handled separately by economic development staff.

Staff noted potential developer contributions to infrastructure, citing a Mecklenburg example where a company paid to double a water-treatment plant's capacity; staff said that jurisdiction nonetheless uses less than its original permitted amount and that evolving cooling technologies have reduced water demand over time.

Planning staff stressed the county has no current application for a hyperscale data center and that the ordinance would create review triggers so impacts can be assessed once an applicant files. "We're trying to come up with a way to crack the door," planning staff said, framing the proposal as a limited, regulated allowance rather than a broad, by-right authorization.

Next steps: staff said the amendment remains under discussion, the planning commission has recommended approval earlier, and any actual project would return to the county as a site-specific special-use permit with public notice, required community meetings and documented utility approvals.