Walker County Panel Considers Heavy Industrial Zoning and Decibel Caps for Data Centers

The Walker County Data Center Development Standards Study Committee reconvened for its second meeting last week to dive deeper into potential zoning restrictions, noise pollution and utility usage. Roughly two dozen people attended the session, where committee members reviewed public feedback and evaluated regulatory options for incoming data center developments.

Survey Highlights Cost Concerns and Tax Loopholes
Committee Chair Stephanie Watkins opened the meeting by presenting results from a recent countywide FlashVote survey. A majority of survey respondents indicated familiarity with data centers, with 69% citing increased electricity and water costs as their primary concern. Watkins also shared information sent to her from members of the public and encouraged residents to talk with their district commissioners as the committee works to draft formal zoning recommendations.

Financial incentives and tax classifications sparked discussion among some committee members. District 3 appointee Laura Owsley expressed concern that state tax incentives are available until 2031 and a project in Walker County would require a $250 million investment to qualify.

Owsley also warned some data center operations have been devalued when sold, reducing local tax revenue. To safeguard the county's property tax base, committee members discussed prohibiting temporary modular pods in favor of requiring permanent, fixed buildings with mandatory aesthetic standards and equipment audit requirements upon sale.

Sound Meter Testing and Resource Safeguards
Environmental impacts and noise pollution generated significant debate. District 4 appointee Kenneth Wilson proposed requiring developers to fund a mandatory impact study, while Owsley advocated adding mandatory environmental studies to the approval process.

Owsley also shared results from an independent sound test she conducted at the property line of a data center in a nearby county. She reported her readings were well above the recommended ambient sound levels for dBA and dBC. The dBA measurement coincides with how human ears hear sound, while dBC captures a lower frequency found in things like generators or heavy machinery. Based on these measurements, Owsley urged the county to incorporate specific A-weighted and C-weighted decibel caps into its draft ordinance and issue fines daily for violating those caps.

On power infrastructure, District 1 appointee Barney Danks noted that the Tennessee Valley Authority now requires facilities consuming over 5 megawatts to participate in peak demand curtailment programs. Addressing backup power, District 1 appointee Jason Rader proposed capping generator testing and operation at 10 hours per month. Danks added that data center operators have no financial motivation to run on generators, as generator power costs three to four times more than grid electricity.

Planning & Zoning Director Jon Pursley noted that electricity supply represents a larger concern than water usage based on new technology, while Rader reiterated the county should restrict facilities to closed-loop cooling systems.

Industrial Park Restrictions and Decommissioning Bonds
Watkins asked for feedback on the first draft of an ordinance worked on in house, as well as what Floyd County just adopted. Zoning location then emerged as a key point of consensus. District 4 appointee Travis Middleton, alongside Rader and Owsley, argued that data centers should be restricted strictly to industrial parks and classified as heavy industrial. Pursley noted that because Walker County currently lacks a heavy industrial zoning classification, creating one would require formal action by the Board of Commissioners.

Addressing broader policy gaps, Rader noted that if the county puts tough restrictions on data centers, maybe it needs to be more restrictive on other types of industries. Middleton called the county's development standards for industries the "wild, wild west" and urged the county to establish unified guidelines for all heavy industries. Chamber of Commerce President Lacey Smith noted the county only recently (2019) adopted a business license, and has historically taken a minimal approach to regulatory oversight.

To protect the county against abandoned facilities, Owsley recommended requiring upfront decommissioning surety bonds. Appointees also noted the need for clear ordinance definitions to distinguish smaller micro-facilities or network repeaters from large-scale hyperscale data centers.

Next Steps
The committee will continue to review ordinances and regulations adopted by other communities, and will take a tour of an operational data center this fall.

The study committee's next meeting will be held at 6:00 p.m. on Thursday, September 24th at the Walker County Civic Center.