Briefing 03/20/2025

Mar 20

This week’s roundup: Frederick County, VA, delayed new data center zoning rules, awaiting HB1601, which could mandate stricter site assessments. Arizona’s Senate advanced HB2774, exempting small nuclear reactors for data centers from environmental and zoning reviews, sparking backlash. In Bessemer, AL, a 700-acre data center faces fierce opposition over accusations of noise, pollution, and lack of transparency.

Frederick County Tables Proposed Data Center Ordinances

The Frederick County Board of Supervisors postponed a decision on new zoning ordinance changes for data centers, waiting to see whether HB1601—a bill that could impose stricter site assessment requirements—gets signed or vetoed by Virginia Governor Glenn Youngkin. Some residents voiced concerns about data center noise and water usage, as the region already struggles with water availability.

The board plans to revisit the matter on March 26 and hold a public hearing on April 9.

Why it matters:

State oversight: If HB1601 is signed into law, it could add state-mandated site assessments for large data centers (100MW+), impacting future projects in Virginia.
Zoning reforms: The Board of Supervisors is considering removing data centers as a by-right use in key zoning districts, which could make future approvals more difficult.

Proposed Data Center in Bessemer, Alabama, Faces Strong Opposition

A proposed 700-acre data center development in Bessemer, Alabama, has drawn opposition from local residents. Neighbors cite concerns about quality of life, noise, pollution, and environmental impact. A packed public meeting saw widespread criticism, with residents questioning why impact studies weren’t conducted before the rezoning request

The site, located near Rock Mountain Lake Road, requires a zoning change from agricultural to industrial to accommodate 18 buildings, each 250,000 square feet. Despite vocal community resistance, the Planning and Zoning Commission approved the rezoning 4-2, sending the decision to the City Council for final approval.

Why it matters:

Community Backlash: This is the first case of data center opposition in Alabama, a state where the data center industry is growing, with major projects from Google and Meta in development
Lack of Transparency Fuels Distrust: The mayor and city attorney signed a non-disclosure agreement, limiting public access to project details, which may erode community trust and increase opposition.

Bill to Fast-Track Small Nuclear Reactors for Data Centers Advances in Arizona Senate

Arizona's House Bill 2774, which would exempt data centers and other industrial users from certain state regulations when building small modular nuclear reactors in rural areas, passed the vote in the Senate Natural Resources Committee Action. The vote was split along partisan lines 5-3, with Republicans in favor and Democrats opposed.

The bill removes the requirement for environmental compatibility certificates and exempts these projects from local zoning restrictions. If it clears the full Senate, it will head to Governor Katie Hobbs (D) for approval.

Opposition:

Environmental Advocates, including the Sierra Club, warn that the bill is a "gift to data centers" that could lead to unregulated water and energy use.
Democrats on the Committee:

Sen. Rosanna Gabaldón (D-21st) opposed the bill, arguing that it removes critical oversight and could expose Arizona to unnecessary risks.
Sen. Priya Sundarashen (D-18th) cautioned that Arizona should not rush into SMR deployment without proper regulations and safety measures.

Why it matters:

Eases Nuclear Deployment: The bill accelerates the adoption of SMRs for data centers seeking alternative power sources, reducing regulatory barriers.
Raises Oversight Concerns: Critics argue that bypassing environmental and local zoning reviews could increase risks and reduce public accountability in data center energy sourcing.

Big picture:

The bill reflects growing efforts to fast-track nuclear energy as an alternative for data centers, particularly in states with water and energy constraints. However, regulatory rollbacks and opposition from environmental groups suggest a looming policy battle over nuclear energy’s role in the sector.