No Ban, No Tax Breaks: Nassau County Report Unveils Its Proposed Data Center Rules

Posted Thursday, October 22, 2026 6:34 pm

Key locations for a data center

Western Nassau County's established industrial and transportation corridors appear to be the most plausible areas for large data centers, particularly around Yulee, the Interstate 95 corridor and portions of the Callahan area.

The committee's most important siting consideration is proximity to existing 500-kilovolt transmission lines, followed by compatible industrial land uses, adequate infrastructure and separation from environmentally sensitive areas and residential neighborhoods.

Three areas that meet the criteria:

1. Crawford Diamond Industrial Park — strongest documented candidate

Best infrastructure match

Located near U.S. 301 and Crawford Road southwest of Callahan, this is the clearest match I found. The Nassau County Economic Development Board identifies 400 acres available for industrial development, adjacent 230-kV and 500-kV power lines, fiber connectivity, natural gas, and water and wastewater infrastructure.

2. Wildlight Commerce Park — potential candidate

The park near State Road 200 and U.S. 17 has industrial development entitlements and transportation access. The Economic Development Board lists 131 gross acres, including 91 net usable acres. However, I have not established proximity to a 500-kV line, sufficient power capacity for a hyperscale facility, or compatibility with nearby planned residential development.

3. ICI Villages Industrial Park / U.S. 90 corridor — potential candidate

Southwest Nassau County has an identified industrial employment center south of U.S. 90. County records describe approximately 248.75 acres proposed for conversion to industrial future land use, adjoining an existing industrial area. Its present zoning, available power and environmental constraints would need parcel-level verification.

By Mike Lednovich

FERNANDINA BEACH - Nassau County should allow data centers under strict new regulations while eliminating their eligibility for county economic development incentives and property tax abatements, according to a 66-page draft report released Wednesday by a county fact-finding committee.

The report recommends creating a special industrial park zoning district for data centers, establishing restrictions based on the size and location of facilities, and requiring developers to address water consumption, electrical demand, noise, environmental impacts and infrastructure costs.

The committee also recommends monitoring facilities after construction, requiring regular reports on water and electricity consumption, and establishing procedures to address violations and the eventual closure of facilities.

The recommendations reject both an outright prohibition on data centers and an approach that would leave their development largely to existing regulations and market forces.

The proposals are advisory. County commissioners have not yet reviewed or adopted the recommended regulations.

The report is now open for public review, and county commissioners have scheduled two workshops before beginning formal hearings on proposed land development regulations.

The first workshop will be held Monday, Oct. 26, from 3 to 5 p.m. in the Board of County Commissioners chambers in Yulee. A second workshop is scheduled for Nov. 9 at the same time and location.

The county expects to release a final version of the report before Thanksgiving.

The report follows months of public controversy over the prospect of large data centers coming to Nassau County, particularly facilities designed to support artificial intelligence and other computing operations that can consume enormous amounts of electricity and require substantial infrastructure.

County commissioners imposed a temporary moratorium on data center development in June to give staff time to examine the industry's impacts and prepare possible changes to county regulations.

The five-member committee, composed of county staff with expertise in planning, government finance, engineering, conservation and economic development, reviewed public testimony, research, presentations from industry and environmental representatives, and examples from other communities.

The report states that data centers would face new zoning restrictions.

The committee recommends establishing classifications for different types of data centers rather than regulating small facilities and massive computing campuses under identical rules.

The classifications would consider the size of a facility, its electrical and water demands, its intended use and its potential effects on neighboring properties.

The county would establish a zoning compatibility table specifying where different classes of data centers could be permitted, along with standards governing building size, setbacks, landscaping, parking, screening and conservation easements.

A dedicated industrial park-data center zoning district would be created through amendments to the county's comprehensive plan and land development regulations.

The recommendations do not establish a universal minimum distance between data centers and residential neighborhoods.

Some residents proposed setbacks of two miles or more from homes, according to the report. The committee instead recommends developing restrictions tailored to the size, location and operating characteristics of individual facilities.

The committee also proposes updating the county's Vision 2050 growth scenario map to account for data centers and associated infrastructure.

It specifically recommends locating data centers near existing 500-kilovolt transmission lines to reduce the need for new overhead power corridors.

The Nassau County Economic Development Board identifies 400 acres available for industrial development, adjacent 230-kV and 500-kV power lines, fiber connectivity, natural gas, and water and wastewater infrastructure.

Water consumption was among the most frequently raised concerns during seven public workshops held in June.

Residents questioned whether large data centers could threaten private wells, groundwater supplies, wetlands and the St. Marys River watershed.

The report acknowledges that cooling technology can substantially affect water consumption. Evaporative cooling generally uses more water but less electricity, while closed-loop systems can reduce water consumption at the expense of increased electrical demand.

The committee recommends requiring applicants to disclose anticipated water and electrical needs, demonstrate the availability of supporting infrastructure and identify improvements needed to serve their projects.

It also calls for operational reporting on water consumption, water-use efficiency, electrical consumption and power-use efficiency.

The report does not recommend that Nassau County assume water permitting responsibilities already assigned to the St. Johns River Water Management District. Instead, it calls for coordination with agencies that have regulatory authority.

Residents also have expressed concern about continuous mechanical noise, particularly low-frequency sounds from cooling equipment, generators and other machinery.

The committee recommends developing measurable limits using both dBA and dBC sound measurements to address conventional and low-frequency noise.

It also proposes standards for exterior lighting, generator enclosures, landscaping, berms and screening.

Those restrictions would be accompanied by monitoring requirements and procedures for documenting violations, requiring corrective action and applying available enforcement measures.

One of the committee's strongest financial recommendations would remove data centers from the county's list of targeted industries eligible for economic development assistance.

The report calls for replacing County Resolution 2026-013 to exclude data centers from consideration under the Economic Development Grant Program and make them ineligible for county economic development incentives.

The report also recommends eliminating ad valorem property tax incentives and property tax abatements for data centers.

The proposed restrictions would apply to incentives controlled by Nassau County. They would not automatically eliminate incentives authorized or administered by the state.

The committee recommends evaluating the public costs and anticipated economic benefits of proposed projects, including their infrastructure requirements and potential effects on existing residents.

The report calls for developers to bear the infrastructure costs associated with their projects rather than shifting those expenses to taxpayers or existing utility customers.

Those costs could include electrical facilities, roads, water and wastewater systems, stormwater improvements and emergency services.

The report cites Florida's new data center legislation, Senate Bill 484, which established additional requirements for large facilities and protections intended to prevent certain electrical infrastructure costs from being passed to existing customers.

The committee acknowledges that data centers can generate substantial property tax revenue, although permanent employment is often limited compared with the size of the investment.

In Loudoun County, Virginia, data centers account for 45% of the county's general fund revenue while occupying approximately 3% of its land area, according to figures presented to the committee by consultant Molly Novotny, who has experience working in that county.

The report identifies construction employment, maintenance contracts, supporting businesses and potential tax revenue among the economic benefits Nassau County should consider.

Those benefits, the committee concluded, must be evaluated alongside infrastructure demands, resource consumption and environmental costs.

The committee's research included visits to existing facilities, including a Cologix data center in Jacksonville.

According to the report, committee members could not distinguish outdoor noise from the facility from surrounding ambient noise. The facility operates in an existing telecommunications building, illustrating how location and design can limit impacts on surrounding properties.

The report contrasts that experience with the Colossus 1 data center compound in Memphis, Tennessee, where power-generation equipment produces noise audible on adjacent properties.

The examples illustrate why the committee recommends regulating data centers according to their size, design, location and operating characteristics rather than imposing identical requirements on every facility.

The committee also reviewed the experience of other communities, including Loudoun County, which has attracted substantial data center investment while confronting concerns about land use, electrical infrastructure and compatibility with residential development.

The proposed regulatory framework would extend beyond the initial approval and construction of a data center.

Developers would be required to prepare construction management plans addressing traffic, working hours, temporary power, water consumption, wastewater, dust, noise and vibration.

Facilities would also need emergency response preparedness reports identifying hazards, emergency procedures and coordination with local emergency agencies.

Once operating, data centers would be subject to monitoring and reporting requirements addressing applicable performance standards, including noise, water-use efficiency and power-use efficiency.

The committee recommends establishing procedures for documenting violations, requiring corrective action and applying enforcement measures authorized by law.

Developers would also have to submit decommissioning plans explaining how facilities would be closed, equipment removed or disposed of, and properties stabilized or restored when operations end.

That requirement responds to residents' concerns about what would happen if rapidly changing technology made large computing facilities obsolete.

Although the committee recommends allowing regulated development, it acknowledges uncertainties about the long-term effects of data centers.

Those include future electricity and water demand, cumulative impacts from multiple facilities, the effectiveness of mitigation measures and the financial consequences of individual projects.

The committee also acknowledges that poorly planned or operated data centers have caused problems in other communities.

Residents who participated in the workshops expressed sharply different views, ranging from demands for an outright ban to concerns that excessive regulation would discourage investment and send development to neighboring counties.

Some residents urged the county to extend its moratorium for additional study. Others questioned whether Nassau County should impose regulations beyond existing state and federal requirements.

The committee concluded that the county should establish predictable development standards while retaining enough flexibility to account for differences among facilities and changes in technology.

The report also cautions that changing development regulations could expose the county to legal challenges involving existing property rights, including potential claims under Florida's Bert J. Harris Jr. Private Property Rights Protection Act.

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

Residents may submit written comments through the county's Data Centers website at https://www.nassaucountyfl.com/1528/Data-Centers until Jan. 8, 2027, at 11:59 p.m.

The county's moratorium, adopted June 8, temporarily prohibits the acceptance, review or approval of applications for data center development for up to 12 months.

County Commissioners will determine whether to adopt the committee's proposed regulatory approach, revise its recommendations or pursue a different policy as the county moves through the public hearing process.

The five-member Nassau County Fact-Finding Committee on Data Center Development consisted entirely of county employees rather than appointed citizens or elected officials. Members included County Manager Taco Pope, Assistant County Manager Marshall Eyerman, Deputy County Manager and County Engineer Robert Companion, Conservation Manager Taylor Clem and Economic Resources Manager Kathy Freyman.

The committee was established by the County Commission under Resolution 2026-102 to examine the potential impacts of data center development, hear public testimony, consult subject-matter experts and recommend regulations. County Attorney Denise May, Operations Manager Amy Bell and the Northeast Florida Regional Council provided additional support. The committee's recommendations are advisory, with final decisions on zoning, development restrictions and economic incentives resting with the County Commission.

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