Vandalia staff outlines zoning options and possible moratorium as data centers expand in Ohio

Rob Cron, a city staff presenter, told the Vandalia City Council on April 6 that data centers are growing across Ohio and can range from small server facilities to hyperscale campuses exceeding a million square feet. He said hyperscale facilities often require 10 megawatts or more of power and can need on-site substations and backup generation, raising concerns about local grid impacts and potential effects on resident electricity rates.

Cron described water usage as another major issue, noting that water-cooled hyperscale facilities can draw substantial amounts for cooling (staff referenced instances cited in public sources of up to about 1 million gallons per day), and said closed-loop systems and advances in cooling technology can reduce but not eliminate those needs. He said those factors, plus noise and light concerns, have prompted other jurisdictions to adopt ordinances or moratoria while rules are drafted.

Staff pointed to several outside examples in the packet. Cron summarized Cincinnati’s overlay-district approach, which imposes review criteria — including utility coordination, stormwater management, adverse effects and public benefits — and said Vandalia had provided that ordinance as a model for council review. He also discussed a high-profile development example in Sydney whose agreement included PILOTs and tax abatements and noted that some moratoria elsewhere have produced litigation (he cited Lordstown, where a developer sued after a moratorium was enacted).

At the state level, Cron described House Bill 646 as proposed legislation to form a 13‑member study commission to assess environmental and infrastructure impacts and produce a report within six months, and he said a separate citizen petition certified by the Ohio Secretary of State would seek a constitutional amendment to prohibit data centers that use more than 25 megawatts if petitioners collect roughly 413,500 signatures by July 1.

Locally, Cron said Vandalia’s zoning code contains no definition or use category for data centers. Staff proposed two definitions — a smaller "data center" and a "hyperscale" center defined at or above 10,000 square feet or 10 megawatts — and recommended placing smaller data centers as a conditional use in the OIP district and permitting centers with standards in industrial zones. Hyperscale sites, staff said, would be limited to industrial/innovation land west of the airport where sites and utilities are more likely to be sufficient.

Draft standards highlighted by staff would require a minimum 200‑foot separation from residential uses for primary structures; full enclosure or screening of cooling, backup generation and power equipment except where physically infeasible; screening of on‑site substations; and a required assessment of impacts on existing electrical customers with corroboration from AES before a zoning certificate is issued. Staff said noncompliance could be grounds to deny a permit.

Council members raised immediate concerns about the proposed 200‑foot buffer. One councilor who visited a data center said 200 feet ‘‘is awful close’’ and referenced model guidance suggesting buffers from 500 to 1,500 feet. Councilors also questioned potential noise, water supply strain and the limited local employment benefits of large data centers, and asked staff to review additional sources such as reports from Brookings, the Lincoln Institute and The Atlantic.

Cron recommended the council give staff time to refine code language and materials and said a short moratorium could be used to pause new applications while the city develops rules. Council members expressed interest in a moratorium of limited duration (staff later discussed drafting moratoria of about nine months, with precise scope and timing to be defined). Council asked staff to return with draft zoning language and options at an upcoming meeting.

Next steps: staff will assemble model language and external research, and council asked that moratorium options and draft text amendments return for further consideration at a subsequent meeting. No ordinance or moratorium was enacted at the April 6 session.