PRESENTER: Presenter
Michael French, New Braunfels Mayor
Matthew Simmont, Planning Manager
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SUBJECT: Title
Presentation and possible direction to staff to amend the City’s Code of Ordinances regarding data centers.
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DEPARTMENT: Mayor
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
This item has been placed on the agenda at the request of Mayor Michael French.
Recent inquiries and state-wide conversations regarding data center development have prompted New Braunfels to evaluate whether the City’s existing zoning ordinance adequately addresses surrounding property compatibility, as well as operational characteristics and impacts of these facilities. This is a common exercise when new uses come about that are not specifically identified in the adopted local ordinances.
New Braunfels’ current zoning ordinance, Chapter 144 of the City’s Code of Ordinances, does not specifically define or identify a zoning district where the “data center” land use is explicitly allowed. Therefore, when that occurs, in accordance with Sections 144-3.3 and 144-3.4, it is allowed:
• By right in the M-2 and M-2A Districts (the most intense industrial districts); and
• With an SUP (Special Use Permit overlay) in the M-1 and M-1A Districts.
ISSUE:
Research shows that certain impacts of a data center can be greater than many other uses currently allowed in New Braunfels’ industrial zoning districts. Examples of impacts could include:
• Water Usage - Many data centers rely on cooling systems to remove the substantial heat generated by servers and other electrical equipment. Depending on the cooling technology employed, water consumption can be significant. This is particularly important for New Braunfels where water resources are a fundamental component of the local economy and environment; a celebrated resource integral to our quality of life; and because there are several different water providers within the City’s jurisdiction.
• Electric Power and Infrastructure - With electricity as a key infrastructure need, data centers may require new substations, expansion of existing substations, new distribution lines from an existing substation, new utility easements, back-up generators, large transformers and electrical equipment, and other off-site infrastructure.
• Noise and Neighborhood Compatibility - Although data centers generally generate fewer vehicle trips than many other large industrial uses, it is anticipated that they would create continuous mechanical noise from the cooling equipment, mechanical systems, fans, transformers, generators, and fuel systems. Additionally, unlike a warehouse, where many activities occur primarily during operating hours, a data center would likely operate continuously.
• Other Community Impacts - Data center developments could also affect agricultural land, wildlife habitats, watersheds, floodplains, riparian corridors, scenic views, enjoyment of residential areas, and future development opportunities of nearby properties.
COMPREHENSIVE PLAN REFERENCE:
• Action 1.3: Encourage balanced and fiscally responsible land use patterns.
• Action 1.11: Update policies and codes to achieve development patterns that implement the goals of this plan.
• Action 2.1: Sustain community livability for all ages and economic backgrounds.
• Action 3.6: Pro-actively provide a regulatory environment that remains business and resident friendly.
• Action 5.2: Discourage development in Edwards Aquifer Recharge and contributing zones, stream zones, flood-prone areas, steep slopes, or other ecologically constrained areas.
• Action 5.4: Incentivize water use reduction and conservation.
STRATEGIC PLAN REFERENCE:
Community Identity
• Objective 2: Implement goals of our residents identified in the Comprehensive Plan including protecting natural resources and safeguarding the character, integrity, and stability of neighborhoods.
FISCAL IMPACT:
N/A
RECOMMENDATION:
Zoning approaches by other Texas cities reinforce the effort by New Braunfels to establish a clear policy before significant development pressure occurs, and to ensure that new development does not place disproportionate demands on the community’s resources or infrastructure. Based on staff research and a review of approaches being considered or already adopted by other Texas cities, staff recommends preparing a code amendment that would define data centers in New Braunfels’s Zoning Ordinance as a distinct land use, and require additional development standards as part of any development application for a data center.
Staff recommends the following:
1. Establish Data Centers as a Distinct Land Use - Due to their unique characteristics and potential impacts, data centers should be specifically defined in the city's zoning ordinance rather than being treated as a warehouse, office, or general industrial use.
2. Limit Data Centers to Industrial Zoning Districts with a Special Use Overlay - Any property that is proposed to be developed with a data center should have an industrial base zoning district plus require a Special Use Overlay (Currently called a Special Use Permit or SUP). An SUP would allow the City Council to evaluate each proposed facility based on its specific location, size, infrastructure requirements, surrounding land uses, and potential community impacts, and impose conditions to ameliorate those impacts. If a proposed site is not currently zoned industrial, the applicant would need to request a base zoning change to an industrial district in addition to the SUP overlay.
3. Establish Baseline Development Standards - Establish a set of development standards for all data centers that address issues such as water demand and water supply; electric and utility capacity; noise; building and equipment setbacks; screening and landscaping; floodplain and natural resource protection; stormwater and drainage; compatibility with surrounding properties; etc.
Examples of potential development standards could include:
• Distance requirement from the floodplain
• Distance requirement from residential uses and zoning districts
• Closed loop water cooling system requirement to minimize water usage
• Energy and water use analysis requirement
• Screening requirements
• Landscaping and tree planting requirements
• Tree removal mitigation requirements
• Maximum decibel level requirements
If directed to proceed, staff will work with the appropriate city departments and outside agencies and utility providers to develop the proposed ordinance amendments. All proposed amendments to the Zoning Ordinance are required to follow the public hearing process with a recommendation from the Planning Commission and final action by the City Council.