Planned data center rezoning in Rural Hall draws planner warning and developer offer of $1M fund

Planning Director Chris Murphy told the Forsyth County Board of Commissioners that a rezoning request for 128.54 acres northwest of Bethania Rural Hall Road seeks to change the site from RS‑20 and General Industrial to Limited Industrial Special Use to permit a multi‑building data center campus. Murphy said staff negotiated numerous prescriptive conditions — including a gated primary entrance, fenced site, noise‑containing walls and a proposed day‑to‑day generator noise limit of 55 dBA with a temporary allowance up to 60 dBA for testing or emergencies — but still judged the proposal inconsistent with the Rural Hall area plan and recommended denial. "From a staff and planning board perspective, the scale and intensity of the proposed use could result in significant off‑site impacts to nearby residents," Murphy said during the briefing.

Commissioners pressed staff on legal options and on the grid and rate impacts of large electrical loads. County counsel and staff cautioned that state legal limits on down‑zoning make moratoria difficult; a staff member referenced the downzoning provision as presented in the briefing and cited relevant statutory constraints. Commissioners also received a written response from Duke Energy (quoted by staff) that said recent large‑load customers in North Carolina have been planned through utility resource filings and asserted that 16 data center projects that signed service agreements would deliver $3.6 billion in benefits over their 15‑year agreements and reduce residential bills by about $4–$6 per month through 2040.

Developer representatives, including project manager Michael Fess, addressed construction and operational concerns such as cooling system types and the risk of contaminants during construction flushes. A representative described a proposed $1,000,000 escrow to be administered by a third‑party escrow agent to fund appraisal‑based claims by homeowners who can document a post‑construction loss in property value. Fess said the fund would be administered outside of county government and paid out based on third‑party appraisals. Staff cautioned the board that an escrow fund of that kind may not be an appropriate zoning condition and that any similar protections could be more appropriately addressed through annexation agreements if the town of Rural Hall participates.

The planning board previously held a public hearing and voted 7–2 to recommend denial; Murphy noted numerous speakers opposed the rezoning citing incompatibility with surrounding uses, noise, environmental concerns and potential impacts to property values. The board did not take a final vote at the briefing; the item will return as a public hearing and legislative decision on the regular agenda noted for Thursday.

The transcript records both technical details (site layout, generator and air‑handling equipment, proposed noise walls and emergency access points) and the key policy tensions: staff's land‑use consistency concerns versus the developer's mitigation proposals and Duke Energy's position on rate impacts and planning.