Industry attorney warns South Fulton draft ordinance could block redevelopments, cites population cap and 2,640-foot setback

The City of South Fulton held a public hearing during its July 28 meeting on a proposed zoning text amendment to regulate data centers. Staff and the planning commission recommended approval with conditions including limiting data centers to M-2 zoning, a required utility-capacity letter, and lowering the minimum lot size to 10 acres.

Michelle Battle of Battle Law spoke in opposition on behalf of clients exploring retrofit opportunities in Fulton Industrial. She warned the draft ordinance treats all data centers the same ‘‘carte blanche’’ and highlighted two provisions she said would be particularly restrictive: "having a population cap that you cannot have more than 1 data center per 30,000 residents," and a 2,640-foot setback from residential or mixed-use properties. Battle argued those rules could prevent adaptive reuse of existing industrial buildings and deter investment: "Who would go through and think about all the money that they have to put down to get to a finished product and then you tell them... their certificate of occupancy would be at risk?"

Councilmembers asked staff whether existing and under-construction facilities count toward the population cap; staff said the current count includes six data centers in various stages. Several council members, while sympathetic to protections, expressed concern that a strict cap and large setbacks would amount to a de facto prohibition in South Fulton’s industrial areas. They urged additional public input and redrafting of the ordinance language prior to further readings.

Next steps: the item was presented as a first read; council signaled it would take more time to refine the text and consider public feedback and comments from industry and community stakeholders before a decision.