County staff says data centers are already allowed by right in many nonresidential zoning districts, while state law limits some attempts to tighten those rules without property-owner consent.
WS Chronicle | Staff Report
Forsyth County commissioners had a clear choice in July when a developer asked them to rezone land near Rural Hall for a massive data center.
They voted no.
The next proposal may not be that simple.
When commissioners meet for their 2 p.m. briefing Monday, they are scheduled to review a staff presentation showing that data centers are already permitted under existing zoning in multiple parts of Forsyth County. In those districts, approval can be handled administratively by planning staff rather than through a discretionary vote by elected officials.
The data-center item is scheduled for discussion, not adoption of new rules.
That puts commissioners in a different position from the one they faced this summer and could shape the next phase of Forsyth County’s debate over an industry that can bring substantial investment while also placing heavy demands on land, electricity and, depending on facility design, water and other infrastructure.
The discussion follows commissioners’ July 30 rejection of the proposed “Project Iron Spur” data center near Rural Hall. The proposal drew months of opposition and raised broader questions about where large data centers belong, what infrastructure they require and how much authority local governments have to regulate them.
What the county’s current zoning allows
Planning and Development Services says it has historically classified data centers under the Unified Development Ordinance category known as “Services, A.” That broad category includes businesses providing services to individuals and other businesses, including computer programming, data processing and related computer services.
Under the current framework, Services, A is allowed in most nonresidential zoning districts with staff review. Forsyth County has no zoning standards written specifically for data centers, although projects still must comply with ordinary development rules covering matters such as buffering, lighting, signs and parking.
For residents, one of the most important terms in the discussion is “by right.”
In plain language, it means that if a property already carries zoning that permits a data center and the project satisfies applicable development requirements, county officials generally do not get to decide whether they believe that particular use is appropriate. The zoning permit is administrative rather than discretionary.
The county’s definition also does not impose a size limit.
A data center is defined as a Services, A use primarily devoted to computers and data processing, with relatively little employment required for monitoring and servicing. As a result, facilities of very different sizes can fall under the same basic land-use category.
Still, not every commercially zoned parcel is a realistic candidate.
Large data centers may require enough land for buildings exceeding 100,000 square feet, proximity to electrical substations or high-voltage transmission lines, and access to public water and sewer service. The need to assemble large tracts of adjoining land can further reduce the number of viable sites.
In practice, infrastructure may narrow the field as much as zoning does.
Water capacity exists, but site conditions matter
The Winston-Salem/Forsyth County water system has a permitted design capacity of 91 million gallons per day, according to county materials. The system is temporarily operating at 67 million gallons per day while the Neilson Water Treatment Plant undergoes renovation.
Average demand during fiscal 2025-26 was 38.1 million gallons per day, while maximum-day demand reached 50.6 million.
County staff says the overall system has sufficient capacity, but a large data center could create concentrated, long-term demand in a specific location. Engineers would need to model the system to determine whether nearby pipes and other infrastructure could reliably serve a particular site.
For neighborhoods and taxpayers, systemwide capacity is only part of the story. Water may be available across the broader network while a proposed site still requires costly upgrades to pipes, pumps or other infrastructure.
Wastewater brings another layer of review
Wastewater would add another layer of review.
County materials say a data center would likely qualify as a Significant Industrial User under the local sewer-use policy. That designation could require an industrial pretreatment permit and monitoring of wastewater volume, temperature, chemical use, cooling-system discharge and contaminants including PFAS.
Electricity may be the biggest infrastructure test
Electricity may present the largest infrastructure challenge.
The county briefing materials, citing information supplied by Duke Energy, say large industrial users, data centers and residential growth are contributing to sharply higher projected electricity demand in the Carolinas.
Duke told the county that large-load customers pay for their own grid connections, make long-term commitments and can allow their load to be curtailed during peak periods.
Those claims still warrant independent scrutiny from Duke Energy and state utility regulators, particularly on whether very large new electric loads could influence future system investments or residential rates.
State law narrows the county’s room to act
The most difficult issue before commissioners may be legal rather than technical.
North Carolina law generally prohibits a local government from down-zoning property without written consent from every affected property owner. State law defines down-zoning to include reducing permitted uses, lowering allowable development density or creating certain nonconforming conditions.
County attorneys apply that restriction directly to the data-center debate.
If data centers are already permitted in a zoning district, local officials may not be able to simply remove that use from the district without triggering the state law. Rules that sharply reduce development intensity — such as significantly larger setbacks or smaller allowable buildings — could raise similar concerns.
That leaves commissioners with less discretion than they had during the Rural Hall rezoning fight.
In a rezoning case, elected officials can vote yes or no on whether to change the zoning map. On property where existing zoning already permits a data center, the county’s authority to impose broad new restrictions is much narrower.
Could the county pause new development?
State law does allow temporary development moratoria in certain circumstances, but local governments must identify the problem requiring a pause, explain why other options are inadequate, specify which approvals are covered, establish a reasonable ending date and outline the work officials intend to complete during the moratorium.
A temporary halt, therefore, requires more than a general desire for additional time to study data centers.
County staff says those legal limits leave “very few options” for broadly changing the current framework.
The constraints do not end the policy debate. They force county leaders to focus on measures that may still be legally available.
What options remain for commissioners
Commissioners could ask whether noise, backup generators, cooling systems, emergency planning or other operational impacts can be addressed without violating state down-zoning restrictions. They could consider whether utility reviews should establish clearer thresholds before developers commit to sites or whether Forsyth County should seek changes in state law.
Economic development policy offers another avenue.
If a company seeks public incentives, elected officials can examine what taxpayers would receive in return — including jobs, infrastructure investment, environmental safeguards or other community benefits.
Which properties could already host a data center?
One basic question also remains unanswered publicly: Which properties in Forsyth County can already host a data center without a rezoning hearing?
Planning staff says it cannot easily search historical Services, A permits by specific business type. Staff is aware of four operating data centers in Forsyth County, all within Winston-Salem’s zoning jurisdiction: Wells Fargo on Sunnynoll Drive, West End Data Center near 4½ Street, a Lowe’s facility near University Parkway and Madison Park, and SEGRA on Old Lexington Road in Salem Business Park.
Those facilities are not the same scale as the hyperscale proposal that drew months of opposition near Rural Hall.
But their presence illustrates the broader issue now facing county leaders.
The first major data-center fight came before commissioners as a rezoning request, giving residents a public hearing and elected officials a vote.
The next proposal could land on property where the zoning decision was made years ago.
What happens next
Commissioners are scheduled to discuss the issue during their 2 p.m. briefing Monday. Any direction they give staff — including requests for legal analysis, mapping, ordinance research or additional utility review — should be verified after the meeting before being described as county policy.