Albemarle County Paves the Way for Strategic Data Center Growth

Albemarle County is proactively shaping its future with a thoughtful approach to data center development. Recognizing the potential economic benefits and the need for careful planning, the County's Board of Supervisors initiated a work session on August 6, 2025, to discuss new regulations and the creation of data center overlay districts. This forward-thinking proposal aims to attract data centers by providing clear guidelines, suitable locations, and a predictable regulatory environment.

Why Albemarle County is Becoming an Attractive Hub for Data Centers

The proposed framework is designed to streamline the development process for data centers while ensuring compatibility with the county's resources and community needs. Here's how the new regulations and overlay districts will help drive data centers to Albemarle:

1. Designated Overlay Districts for Strategic Location: The County is proposing the establishment of five specific data center overlay district locations. These districts are carefully chosen based on criteria that favor data center operations and minimize negative impacts:

   • They are located within the development area.
   • They are recommended for industrial, research and development, or similar uses in the Comprehensive Plan.
   • They are served by public water and sewer, addressing a critical utility need.
   • They are situated near existing high-voltage power lines, which minimizes the impact of providing necessary electrical power. This pre-identified zoning removes much of the guesswork for developers, indicating areas where their projects are most likely to be supported by existing infrastructure.

2. Flexible Tiered Development Sizes: The proposed draft ordinance introduces a tiered district system, offering flexibility for different scales of data center development.

   • Tier 1 would allow data centers up to 125,000 square feet by-right.
   • Tier 2 would permit data centers up to 500,000 square feet by-right. For sizes exceeding these by-right limits, a special use permit would be required, providing a clear pathway for even larger facilities. This flexibility allows developers to plan projects of various sizes with clear expectations regarding the approval process.

3. Clear and Enhanced Performance Standards: While aiming to protect the community, the proposed enhanced performance standards provide predictability and clear requirements for developers, which is crucial for project planning and budgeting.

   • Water Management: Data centers must be served by public water and sewer, and any water cooling systems must use a closed-loop or recycled water system. Coordination with Rivanna Water and Sewer Authority (RWSA) and Albemarle County Service Authority (ACSA) is required for cooling water flushing and refills, ensuring responsible water use.
   • Generator Regulations: New regulations require generators to be low emission (meeting or exceeding EPA Tier 4 standards) and allow for battery energy storage systems, promoting more sustainable backup power solutions. Routine generator maintenance is restricted to specific weekday hours to minimize community disturbance.
   • Noise Control: The ordinance establishes clear day/night noise limits that are lower than other industrial uses. Developers will need to submit a noise study prior to site plan approval and conduct post-construction monitoring, with mitigation required if limits are exceeded. This provides a defined standard that developers can design to meet.
   • Equipment Screening: All cooling, ventilating, and other operational equipment must be contained within an enclosed building, walled courtyard, or behind a roof parapet, ensuring that the visual impact is minimized from public streets or adjacent properties.
   • Reduced Setbacks within Overlay Districts: Within the new overlay districts, setbacks from district boundaries are reduced to 200 feet, allowing for more efficient use of the designated land while standard underlying district setbacks still apply.
   • Building Design: Requirements are in place to break the mass and façade of buildings visible from public streets or abutting residential/rural areas, enhancing aesthetics.

4. Acknowledgment of Economic Benefits: The County recognizes that data centers can add significantly to the commercial tax base, which can help fund public services and infrastructure, potentially reducing reliance on residential property taxes. This mutual benefit is a key motivator for the county to attract these facilities.

By proactively addressing potential impacts through well-defined regulations and clearly identifying suitable development zones, Albemarle County aims to create an environment that is attractive for data center investment, fostering economic growth while preserving the quality of life for its residents. The Board of Supervisors is currently seeking guidance on supporting these proposed regulations, overlay district boundaries, and the tiered district concept.