Proposed Highway 85 Data Center Heads to Fayetteville Planning Commission

A proposed data center along Highway 85 North will be reviewed by the Fayetteville Planning and Zoning Commission on Tuesday, January 27, continuing an ongoing community conversation about growth, infrastructure, and economic development.

According to the Planning Commission agenda, commissioners will consider a conceptual site plan and building elevations from CHI/Acquisitions, LP for the “Hwy 85 N DC Project.” The property is located on Highway 85 North and identified as parcel 0538 104.

The property is zoned Business Park (BP), a classification under Fayetteville’s zoning code that allows data centers as a permitted use. As a result, the Planning Commission’s review is focused on site design, layout, and compliance with development standards rather than whether the use itself is allowed.

Planning and zoning experts have noted in similar cases that when a proposed use is permitted under existing zoning, denial can expose a local government to legal challenge if an applicant meets all applicable requirements. City officials have not commented publicly on any potential legal implications related to the project.

The proposal comes as Fayetteville continues to assess the broader impact of data center development following construction of the QTS facility along Ga. Highway 54.

City leaders have previously pointed to QTS as a major economic asset, citing its contribution to the local tax base and community investments. In November, QTS unveiled a new multi-use path as part of an expanding partnership with the city, an initiative local officials said reflected long-term corporate engagement in Fayetteville.

As discussion around data centers has intensified, the Fayette County Development Authority emphasized that it is not involved in the proposed Highway 85 project.

“It is important to clarify that the proposed data center is not a project of the Fayette County Development Authority,” said Niki Vanderslice, president and CEO of the FCDA. “The FCDA does not own the property, is not the applicant, and is not the developer. Our role is limited to providing information and supporting informed decision-making as the community evaluates potential economic impacts.”

Vanderslice said the authority supports long-range planning that balances growth with community priorities.

“We support smart land-use planning that balances growth with community character and long-term sustainability,” she said. “A diversified economy is essential to maintaining a strong tax base and protecting residents from over-reliance on any single industry.”

She added that strengthening the tax digest can reduce pressure on local taxpayers.

“Strengthening the county’s tax digest allows essential services to be funded while helping keep property tax rates lower for homeowners and businesses alike,” Vanderslice said.

Vanderslice said the authority’s approach to data centers has evolved.

“While technology is a targeted industry sector for the FCDA, we are not looking to recruit any additional data centers to Fayette County,” she said.

In addressing environmental concerns often raised by residents, Vanderslice provided context about water usage associated with large data centers. She explained that when fully built out, the QTS project is expected to use roughly the same amount of water as about 50 homes. By comparison, she said a property of that size could have supported more than 1,200 residential homes if developed for housing — a scenario that would have resulted in significantly greater long-term water demand and environmental impact.

Still, concerns about continued data center development have been raised by some residents.

Jesse Brooks, a Fayetteville resident who contacted The Citizen to bring attention to the issue ahead of the meeting, said frustration has grown as the physical footprint and infrastructure demands of data centers have become more visible.

“Fayetteville is fed up with data centers,” Brooks said. “The massive QTS facility on Hwy. 54 has already put enormous strain on the local roads, electrical grid, and ecosystem, and it isn’t even finished.”

Brooks, a multimedia producer who was born and raised in Fayetteville, said the utility infrastructure required to support the facilities has become a major point of contention.

“Everyone I talk to is furious about the mammoth utility poles that have been strung up across the city, through yards and neighborhoods, to keep it running,” he said.

He said the proposed Highway 85 project has heightened concerns about cumulative impact and location.

“And now another outside developer wants to toss another log on the fire with a data center directly adjacent to the city’s busiest shopping center,” Brooks said. “I’m not sure who stands to benefit from these deals, but it isn’t the people of Fayetteville.”

Brooks said opposition to continued large-scale development cuts across political lines.

“We’re a pretty diverse town politically, but we all pretty much agree that it’s enough with all the big development and data centers,” he said.

Tuesday’s Planning and Zoning Commission meeting will be held January 27 at 6 p.m. at Fayetteville City Hall, 210 Stonewall Avenue West. Any recommendation made by the commission is advisory and would move forward to the Fayetteville City Council for final consideration.

NOTE: This story was edited at 9:23 a.m. on 1/27 to add in the perspective of a written statement and interview from Niki Vanderslice.