Clay County Bans Commercial Data Centers with Unanimous Vote

The Clay County Board of Commissioners have voted unanimously to prohibit commercial data centers from establishing, constructing, expanding or operating in the county, adopting an ordinance that takes effect immediately.

The ordinance, approved Jan. 8, 2026, bars commercial data centers with a peak power demand of 2 megawatts or greater from all zoning districts in Clay County’s unincorporated areas. County officials said municipalities within Clay County may choose to adopt the same restrictions within their own corporate limits and extraterritorial jurisdictions.

Under the ordinance, a commercial data center is defined as a facility or campus operated by a non-governmental entity for processing, storing or transmitting data and requiring building or electrical permits under the North Carolina Building Code. The ban applies regardless of whether the facility supports artificial intelligence or other data operations.

The ordinance includes exemptions for government-owned or operated data facilities used exclusively for public purposes, such as emergency management, public safety communications and essential government operations. Small-scale data facilities with peak demand below 2 megawatts and internal, non-commercial data operations incidental to otherwise permitted uses are also exempt.

In adopting the measure, the board cited findings that Clay County is a rural community where quality of life, agricultural character and scenic landscapes are core values. Commissioners determined that large-scale data centers are intensive industrial uses that require significant electricity and water, operate continuously, generate noise and light pollution, and can strain limited infrastructure.

According to the ordinance, county infrastructure and services cannot adequately support the demands of commercial data centers without placing a substantial burden on taxpayers and residents. The board also found such facilities incompatible with the county’s comprehensive plan, which emphasizes preserving rural character and promoting sustainable development.

The ordinance directs the Clay County Building Inspector and other permitting authorities to deny any permits related to commercial data centers covered by the ban. It also prohibits disposal of waste from commercial data centers at the Clay County Transfer Station, regardless of where the facilities are located.

Variances may be considered only in extraordinary circumstances and require review by the Clay County Planning Board, a public hearing, and unanimous approval by the Board of Commissioners. Any variance request must demonstrate unique and undue hardship not created by the applicant and must be consistent with the public health, safety and welfare of the county.

The ordinance became effective immediately upon adoption.