TO: Mayor and Members of City Council
THRU: Jodi Phelps - Assistant City Manager
Dr. Gerald Newton, AICP - Development Services Director
FROM: Willie L. Henry, CGCIO, Chief Information Officer
Demetrios Moutos, AICP - Planner II
Craig Harmon, CZO - Senior Planner
DATE: April 6, 2026
RE:Title
Telecommunications and Data Storage Facilities (Data Centers)Title
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COUNCIL DISTRICT(S):
Council District(s)
All
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Relationship To Strategic Plan:
The history and evolution of data centers are closely connected to the City of Fayetteville's FY2025 Strategic Plan, presenting both opportunities and challenges. Modern data centers advance the Plan's focus on economic diversity, strategic growth management, innovation, and data-driven governance. As these facilities have transitioned from small, specialized computer rooms to major infrastructure assets, they have become integral to the modern economy. This progression aligns most directly with Goal II: Diverse and Viable Economy and Goal III: City Investment Planning, as data centers can broaden the nonresidential tax base, attract substantial private investment, and necessitate coordinated planning for land use, utilities, broadband, and long-term infrastructure capacity.
Data centers are most consistent with the Strategic Plan when recognized as major infrastructure uses that require comprehensive land-use review, fiscal discipline, utility coordination, and transparent public engagement. The historical development of data centers thus supports the Plan's objectives but underscores the importance of balancing economic opportunities with long-term public service, infrastructure, and community impacts.
Executive Summary:
Data centers have transitioned from small, internal computer rooms serving government, research, and corporate institutions to large, standalone facilities supporting cloud computing, digital communications, and artificial intelligence. As this transformation has ...
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