Can Nassau County stop mega data centers? Legal warning dominates public workshop

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YULEE — Nassau County commissioners face significant legal risks if they attempt to ban data centers outright, County Attorney Denise May warned Monday, explaining why county officials are pursuing strict development regulations instead of the prohibition demanded by some residents.

"Why can't we just ban them?" asked County Commissioner John Martin during the County Commission's first public workshop on proposed data center regulations.

The central legal problem, May explained, is that data centers may already be permitted under existing county land-use rules. Eliminating those development rights could expose the county to lawsuits challenging the legality of a ban and potentially seeking compensation for affected property owners.
 

"My opinion is an outright ban is more than just risky," May told commissioners.

The warning came as residents urged commissioners to slow the process, increase setbacks from homes and strengthen protections against noise, groundwater contamination, excessive water consumption and other potential impacts from massive data center campuses.
 

Although Florida law allows local governments to regulate data center development through zoning and land development standards, May said those restrictions must have a defensible legal basis. The county's current approach is to establish measurable, enforceable requirements rather than risk adopting a blanket prohibition that could be overturned in court.

Commissioner Jeff Gray noted that Nassau County's situation differs from communities where data centers were not previously permitted. May agreed that removing an existing permitted use presents additional legal complications.
 

Martin suggested that an outright ban could have the unintended consequence of attracting developers willing to exploit weaknesses in the county's legal position.

"Which, in my lay opinion, correct me, would invite bad actors to come to Nassau County," Martin said, questioning whether counties that had imposed blanket bans had done sufficient legal research to defend them.
 

"And if we didn't do our due diligence like this, we would be inviting the bad actors to come to Nassau County and potentially walk right over us," he said.

County Attorney May agreed, explaining that the county's temporary moratorium was intended to provide time for expert analysis and the development of legally defensible regulations.
 

The concern was that a poorly supported ban could be challenged by developers, particularly because data centers may already qualify as permitted uses under existing county regulations. By establishing detailed standards governing setbacks, noise, water consumption and other impacts, county officials hope to retain greater control over where and how data centers operate.

The debate underscored the difficult choice facing commissioners: how to protect residents from the potential consequences of large-scale data center development without adopting restrictions that could leave the county legally vulnerable.
 

The workshop was the first of two scheduled reviews of a 66-page fact-finding report and accompanying draft regulations developed following the county's June moratorium on data center development.

 
Taco Pope
Taco Pope
 
 
County Manager Taco Pope acknowledged residents' concerns, saying the committee's investigation found that even recently constructed data centers can create serious problems for surrounding communities.
 

"Our initial hypothesis was that the problem children, if you will, were just based on old technology and not having new technology and using best practices," Pope said. "And ultimately what we found out is that's not accurate."

He said some newer facilities have been developed with little apparent regard for their effects on neighboring properties.
 

The challenge, Pope told commissioners, is to establish regulations that prevent those problems while recognizing that data centers vary enormously in size, purpose and environmental impact.

Fernandina Beach resident Julie Ferreira criticized both the proposed setbacks and the county's decision to schedule workshops during weekday working hours.
 

She urged commissioners to use more of the 12-month moratorium adopted in June to study potential impacts and hold evening meetings so working residents could participate.

"I would really request that you consider slowing the process down," Ferreira said.
 

She objected to a proposed 100-foot setback for smaller data centers, which she said could include buildings as large as 10,000 square feet.

 
Julie Ferreira
Julie Ferreira
 
 
"A 100-foot setback is six cars parked bumper to bumper," Ferreira said.
 

She urged setbacks of 300 to 500 feet or more, citing concerns about noise, sleep disturbances and possible health effects.

Ferreira also questioned a proposed 200-foot setback for facilities as large as 100,000 square feet.
 

Chad Charland of Fernandina Beach praised several provisions in the draft regulations, including restrictions on nondisclosure agreements, the proposed elimination of county economic development incentives, wildlife protections, lighting standards and decommissioning requirements.

But he said the regulations should go further.
 

Charland questioned why the county would require closed-loop cooling systems without also requiring data centers to operate entirely on renewable energy.

He expressed concern that large data centers could include natural gas power plants, creating additional environmental and noise impacts.
 

Charland also criticized a proposed $1,000 daily fine for certain reporting violations, arguing that such penalties would be insignificant to companies investing billions of dollars.

"A multi-billion-dollar data center project can incur years' worth of $1,000 a day fines and not even notice it," he said.
 

He suggested increasing the fine to $5,000 a day or establishing escalating penalties.

Charland also questioned a proposed half-mile separation between mega campuses and housing and criticized language encouraging, rather than requiring, a minimum 10% participation by Northeast Florida contractors and apprentices in construction employment.
 

He suggested requiring substantially greater local participation.

Pat Scanlon said a group of residents submitted a 25-page document containing 45 proposed ordinance provisions to county officials in September.
 

She thanked the committee for incorporating many of the suggestions but said the draft appeared to lack sufficient protections for groundwater and private wells.

Scanlon urged the county to require baseline groundwater testing before construction or land clearing, including testing private wells for multiple water-quality indicators.
 

She also questioned whether the proposed regulations adequately addressed wastewater discharge from data center cooling systems.

Scanlon praised the committee's recommendation to exclude data centers from county economic development incentives.
 

Peggy Walsh of Yulee challenged commissioners to explain the economic justification for allowing large data centers.

She questioned whether the property tax revenue and short-term construction employment would compensate for the potential impacts on residents.
 

"Convince me, convince all of us what is so wonderful about having a data center in our backyard," Walsh said.

Walsh suggested imposing stringent decommissioning requirements and financial guarantees to ensure that abandoned facilities would not leave taxpayers responsible for restoring properties.
 

Commissioner Martin said he favored stronger setbacks but wanted regulations that could withstand legal challenges.

He questioned whether adopting a ban without sufficient legal justification might ultimately make the county more vulnerable to developers.
 

May said the county's approach was intended to establish defensible standards that could be enforced against developers and operators.

She also explained that state and federal laws limit the county's ability to regulate certain aspects of power generation and utility operations.
 

For example, Nassau County generally cannot dictate which energy source a utility must use. However, the county can establish land-use and performance standards governing noise, setbacks and other impacts within its jurisdiction.

Similarly, while the St. Johns River Water Management District regulates consumptive water-use permits, the county can consider requirements for closed-loop cooling, reclaimed water and operational reporting.
 

Pope provided commissioners with an explanation of why Nassau County has attracted interest from data center developers.

He displayed maps showing the county's Vision 2050 employment centers and existing high-voltage electrical transmission corridors.
 

The county's long-range growth plan identifies approximately 22,000 acres of potential employment centers, Pope said.

A major 500-kilovolt electrical transmission line crosses western Nassau County, generally following the U.S. 301, Crawford Road and nearby corridors.
 

A major natural gas pipeline also traverses the western part of the county.

Large data centers, particularly hyperscale facilities, often seek locations with access to substantial electrical capacity and natural gas infrastructure rather than proximity to customers.
 

"So why are so many people interested? Why is there such a discussion in Nassau County?" Pope asked.

"It's because we have the ingredients that folks are looking for."
 

He said those infrastructure corridors overlap portions of the county with relatively sparse populations, making them attractive for large industrial projects.

The maps did not designate specific properties for data center development.
 

Pope emphasized that smaller data centers serve different purposes. Some are incorporated into hospitals, manufacturing plants and other businesses, while smaller independent facilities may need to be located near population centers to minimize data transmission delays.

That distinction is central to the committee's proposed system of regulating data centers according to their size and intended use.
 

County Operations Manager Amy Bell outlined the committee's research, which included five in-person data center visits and five additional case studies.

Among the facilities examined was a QTS development in Fayetteville, Georgia, where Microsoft is the announced end user.
 

Bell described the project as a 1.2-gigawatt development encompassing approximately 900 acres, with construction expected to last about six years.

Two buildings began operating this year, she said.
 

The project provided lessons about the importance of planning for construction traffic, parking, noise and public infrastructure.

Pope said the Fayetteville development had as many as approximately 8,000 construction workers on site daily during peak activity, with a fleet of about 70 school buses transporting workers.
 

Those demands created significant challenges for the surrounding community.

Pope said officials in Fayetteville and Fayette County told Nassau County representatives that the project had brought substantial economic benefits and that they would support it again, although they would approach some aspects of planning differently.
 

He said the experience demonstrated why construction impacts must be considered separately from long-term operations.

The committee also visited data centers operated by Meta, Google and DataBank in Georgia and a facility in Jacksonville.
 

Bell said the committee would examine those case studies in greater detail at the next workshop.

 
John Martin
John Martin
 

Martin expressed support for increasing setbacks and questioned whether renewable energy requirements could be imposed.

Pope responded that setbacks should reflect the scale and operating characteristics of each facility.
 

A small data center located in an existing commercial building, he explained, would present substantially different impacts from a hyperscale campus covering hundreds of acres.

The county attorney said Florida's utility regulations restrict local authority over energy sources but allow certain performance standards intended to protect neighboring properties.
 

Martin also questioned whether the proposed fines were sufficient to compel compliance.

May said the enforcement provisions remained under review and would be consolidated into a more consistent section of the regulations.
 

She cautioned that penalties must comply with constitutional restrictions on excessive fines.

Commissioner Gray said the board's responsibility was to establish protections before data center developers seek approval.
 

"Our responsibility is to develop responsible controls and ordinances to protect Nassau County's communities and citizens," Gray said.

Commissioner Hupp Huppman praised the committee's work but agreed that the county needed to demonstrate the potential economic benefits more clearly.
 

"Where's the benefit? And I think that we need to show that," he said.

Pope said additional economic information could be presented during the next workshop.
 

Conservation and Natural Resources Manager Taylor Clem, a member of the fact-finding committee, said the report was developed by comparing residents' concerns with expert testimony, published research and visits to existing facilities.

He said the committee identified 12 major findings and six broad recommendations covering land use, infrastructure, water resources, environmental protections, monitoring and economic impacts.
 

The county has retained an acoustical engineering expert to help refine its proposed noise standards.

Those provisions, including a technical memorandum addressing sound and low-frequency noise, are expected to undergo additional revisions.
 

Staff also plans to incorporate more specific dark-sky lighting requirements intended to reduce glare and light pollution.

Pope said future revisions would be published with tracked changes so residents could see how the proposed regulations evolve.
 

The committee's recommendations remain advisory. Commissioners have not adopted the proposed zoning changes or operating standards.

Monday's meeting was intended primarily to introduce the report, explain the proposed regulatory framework and identify issues requiring further examination.
 

The second County Commission workshop is scheduled for Nov. 9 and will focus more closely on the case studies and proposed regulations.

 

County officials expect to publish a final version of the report and draft regulations Nov. 25.

The Planning and Zoning Board is scheduled to hold a public hearing Dec. 1, followed by County Commission hearings Dec. 14 and Jan. 25.
 

The January hearing is scheduled as the adoption hearing, although commissioners have not committed to approving the recommendations.

 

Residents can continue submitting comments through the county's online data center portal and at upcoming public meetings.

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