TO: Mayor and Members of City Council
THRU:
FROM: Council Member McMillan
DATE: March 2, 2026
RE:Title
City Council Agenda Item Request - Data Center Policy Discussion: Southern Environmental Law Center Presentation - Council Member McMillanTitle
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal III: City Investment Planning (Objective 3.2 - Manage the City’s future growth and strategic land use; Objective 3.5 - Increase smart city capacity)
Priority: Develop a comprehensive approach to community safety. (safety through environmental, health and community-centered lenses)
Executive Summary:
This request directs the City Manager and appropriate staff to research data center development policy options and return to City Council with a formal presentation of findings and recommendations. The goal is to ensure Fayetteville acts proactively and strategically rather than reactively when data center proposals arrive.
Staff research should address, at minimum, the following policy options for Council’s consideration:
• Zoning text amendment creating a standalone definition for data centers with performance standards, environmental impact assessments, public benefit evaluation, ect.
• Permitting conditions and community benefit requirements
• A temporary development moratorium on new data center applications, providing a defined window - typically 60 to 180 days - for the City to complete its policy development before accepting or approving proposals. Staff should assess the legal framework, scope, and appropriate duration of a Fayetteville moratorium as one of the options presented to Council.
Recommend interlocal coordination mechanisms with Cumberland County to align standards, share research, and present a unified regulatory posture to prospective developers. In addition, the Southern Environmental Law Center (SELC) has published a report titled “Getting It Right: Local Approaches to Data Center Development” that may assist City staff in benchmarking policy options
Recommendation: Invite the City Attorney’s Office, FCEDC and relevant department staff to attend in order to facilitate follow-up discussion on implementation options.
Background:
Issues/Analysis:
Budget Impact:
Options:
Recommended Action::Recommended Action
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Attachments:
City Council Agenda Item Request Form