**Read the full data regulations at the bottom of this article.**
A nine-page draft would establish detailed rules for water, electricity, noise, roads, emergency response, development costs and what happens when a data center shuts down. Here's what the proposal says and what it could mean for future projects in Lincoln County.
Lincoln County is moving toward a much more detailed set of rules for data centers, and the latest proposal goes well beyond simply deciding where those facilities can be built.
The proposed regulations address nearly every major concern that has emerged in the county's discussion of data centers, including water consumption, electrical demand, infrastructure costs, noise, lighting, emergency response, environmental impacts and what happens if a facility eventually closes.
The nine-page document is a draft version dated July 16, 2026. It is not yet the county's final regulation, and the language could still change as the proposal moves through the county's zoning process.
But the document provides the clearest picture yet of what Lincoln County officials are considering.
At its core, the proposal would require a developer to demonstrate that a data center can be built and operated without shifting the project's infrastructure costs onto existing taxpayers or utility customers, while also requiring the developer to address potential impacts before receiving approval.
Why is Lincoln County proposing specific data center regulations?
The county already has language addressing data centers in its zoning regulations. The proposed Section 8.22 would replace that relatively general approach with a much more detailed set of standards.
The stated intent of the new section is to regulate the location and site design of data centers, as well as construction methods and some operating procedures, in an effort to promote what the draft calls "efficient and responsible development."
The proposal says the regulations are intended to ensure compatibility with surrounding land uses, protect the environment and safeguard public health, safety and welfare.
That means the county is not proposing a blanket prohibition on data centers. Instead, the draft establishes a series of conditions that a proposed facility would have to meet before it could move forward.
And the rules would apply broadly.
The draft says the requirements would apply to all data centers, although ancillary data centers may be exempt.
What exactly counts as a data center?
The proposal defines a data center as a facility involved in storing, managing, processing or transmitting digital data and housing computer or network equipment, servers and other associated components.
The definition goes beyond the building containing computer servers. It also includes infrastructure that supports continued operation of the facility, such as air handlers, power generators, water cooling and storage facilities and utility substations.
The draft also distinguishes between several different types of data centers.
An ancillary data center, sometimes referred to as a micro center, is described as a smaller localized server room occupying less than 25% of a building's gross floor area and functioning as an ancillary use to a commercial or office operation. Those facilities typically consume less than one megawatt of power.
An edge data center is described as a smaller, decentralized facility located closer to users or devices. The draft says those facilities typically operate between one and 10 megawatts.
At the other end of the spectrum is a hyperscale data center, which the draft describes as a massive computing facility capable of handling enormous amounts of data, storage and networking. Those facilities typically require between 50 and 100 megawatts or more to operate.
The proposal also defines a data center campus as two or more data center structures located on contiguous parcels under common ownership or control, or within the same structure.
That distinction could become important as developers consider building large campuses in multiple phases.
The county would want much more information before an application is considered complete
One of the biggest changes in the proposed regulations is the amount of information a developer would have to provide before the county would consider a Conditional Use Permit application complete.
The applicant would have to submit studies covering noise mitigation, decommissioning, water consumption, wastewater treatment, electric consumption, emergency response, a road agreement, environmental and community impacts and a community benefits agreement.
The draft specifically says an application would not be considered complete until all of those items had been completed and received.
That creates a significant threshold before the formal review process can even move forward.
The county would also require a pre-submittal process. Before proceeding with the application process, the developer would meet with the county to review the proposed application.
Lincoln County would also reserve the right to hire a third-party professional to review elements of the project, with the property owner responsible for the expense. The same authority appears again later in the regulations in connection with water review and decommissioning.
In practical terms, that means a developer would be expected to arrive at the application stage with substantially more technical information than would be required for an ordinary land-use proposal.
Water is one of the most specific parts of the proposal
Water has been one of the biggest concerns surrounding data center development, and the proposed regulations devote considerable attention to how a facility would obtain and use water.
The draft says any water cooling system must use a closed-loop or recycled-water system.
A developer would also have to identify in its required water consumption study how much water would be lost from that system and how much water would be needed to replenish it.
But the proposal does not establish a simple maximum number of gallons a data center could use.
Instead, it establishes a performance standard.
A data center could not be approved unless the applicant demonstrates that an adequate water supply exists for the proposed use and that the proposed withdrawals and discharges would not endanger or adversely affect the quantity or quality of groundwater supplies or surface waters in the vicinity.
That puts the responsibility on the developer to demonstrate that the water supply is adequate and that the proposed operation will not cause unacceptable impacts to surrounding water resources.
If the property would be served by a public water system, the developer would have to provide documentation from the public authority certifying that the authority will supply the water needed by the facility.
The draft also says air cooling and other non-water cooling methods are preferred and strongly encouraged.
That wording is important because the proposal does not prohibit water-based cooling. Instead, it requires water-based systems to operate as closed-loop or recycled systems and requires the developer to account for water losses while demonstrating that the proposed withdrawals and discharges will not harm nearby water resources.
Water and wastewater would continue to be monitored after approval
The proposal would require an applicant to provide evidence that there is sufficient water and wastewater capacity from the utility provider.
If a facility instead relies on a well and onsite wastewater treatment system, the proposal calls for certification of efficiency by a professional engineer.
The draft also requires annual water and wastewater sampling to ensure compliance with federal, state and local regulations.
That means the county's interest in water would not necessarily end when the Conditional Use Permit is approved.
The proposal also requires annual water consumption reports to be submitted to the Lincoln County Planning Office.
The county wants to make sure existing utility customers do not pay for the project
Electricity is another major component of the proposed regulations.
The draft says an applicant must demonstrate that the project will not materially impair electrical reliability for existing customers.
It also takes a direct position on who should pay for infrastructure.
The proposal says costs associated with electrical generation, transmission, substations, distribution facilities or other utility infrastructure required to serve the data center cannot be borne by existing utility customers or ratepayers.
The developer would also be responsible for the costs of extending infrastructure to the site.
The draft specifically identifies roads, water, wastewater, stormwater, electrical generation, transmission, distribution, substations and other utility upgrades as examples.
The stated goal is that existing utility customers, taxpayers and ratepayers should not be required to subsidize the project.
That is one of the clearest policy choices in the proposal.
The county is not simply asking whether the infrastructure exists. It is also addressing who pays when additional infrastructure has to be built.
What happens if the data center is connected to the electrical grid?
A grid-tied data center would have to provide the county with a signed letter from the electric utility demonstrating that the facility can be served without impairing system capacity.
The alternative would be for the facility to provide its own dedicated power generation supply.
The proposal also contains a separate section addressing data centers that operate behind the meter.
For those facilities, the county could require dedicated electrical generation and energy storage, or a combination of the two, sufficient to offset 100% of the facility's projected electrical demand.
The key word is "may."
The proposal does not say every behind-the-meter data center automatically has to generate and store enough electricity to offset its entire projected demand. It says the facility may be required to do so.
Before construction is completed, the applicant would also have to provide written verification from the applicable service provider addressing the available transmission and substation capacity, the ability of utility equipment to safely accommodate the facility and whether the systems needed to cool and operate the facility would be adequate without negatively affecting the surrounding region.
If an energy storage system is being used, the system would also have to be identified.
The developer would be responsible for project-related infrastructure
The proposal is particularly direct when it comes to infrastructure.
It says the applicant would be solely responsible for all project-related infrastructure costs.
That could include everything from extending roads and water lines to building or upgrading wastewater, stormwater and electrical infrastructure.
The developer would also have to enter into a Road Use Agreement with Lincoln County.
At a minimum, that agreement would address repair of county roads after construction, either through the developer performing the repairs or paying for them, as determined by the County Highway Superintendent.
The county could also require development agreements, escrow accounts, bonds, letters of credit or other financial guarantees.
That provision could become particularly important during construction, when a large project could generate substantially more heavy truck traffic than a typical industrial development.
A data center would need at least 10 acres
The proposed minimum site size for a data center is 10 acres.
The setbacks would match the county's I-1 Industrial District standards, which the draft identifies as 30 feet from the front property line, 25 feet from the rear property line and 10 feet from the side property lines.
The setbacks would be measured from property lines.
The developer would also have to identify any areas where future expansion is anticipated.
Multiple contiguous parcels could be combined to satisfy the 10-acre minimum.
The county could also require greater setbacks based on site-specific conditions.
The draft does not establish a maximum acreage for a data center.
It also does not establish a maximum size for a campus.
Instead, it specifically anticipates that some facilities may have future expansion areas and says any future increase in building area, electrical demand, computing capacity or site area would require an amendment to the Conditional Use Permit.
The county wants large facilities to fit into their surroundings
The proposed regulations address the physical appearance and placement of data centers.
The draft says principal and accessory structures associated with a data center should be arranged, designed and constructed to be compatible with the site and surrounding properties.
It encourages data centers that visually approximate commercial office buildings.
Buildings would be expected to be positioned to minimize the visual impact of their size and bulk when viewed from adjacent public streets and what the regulations call "Sensitive Receptor" areas.
If that cannot be accomplished, permanent screening could be required around the perimeter of the property.
For a campus containing multiple buildings, the draft encourages developers to transition from smaller or lower buildings along street frontages to larger and taller structures farther inside the property.
Topography would also be considered so larger, taller or more massive buildings are not placed in prominent locations along public streets.
The proposal encourages earth-tone colors and non-reflective surfaces on exterior walls and roofs to reduce the visual impact of the facilities.
Who is considered a "sensitive receptor"?
The draft uses the term "Sensitive Receptors" repeatedly, and its definition is broad.
It includes schools, preschools, day care centers and in-home daycares. It also includes hospitals, long-term care facilities, retirement and nursing homes, community centers, places of worship, playgrounds, parks, campgrounds, prisons and dormitories.
Residences are also included unless the residence is located on a parcel with an existing industrial, commercial or unpermitted use, as determined by the zoning officer.
The definition matters because the proposal specifically requires developers to consider the visual impact of buildings from Sensitive Receptor areas and allows additional screening and buffering where appropriate.
Cooling equipment and generators would have to be screened
The proposal also addresses the equipment that can make data centers particularly noticeable to people outside the facility.
Cooling towers, HVAC equipment, air intake and exhaust equipment and backup power-generation equipment would generally have to be fully enclosed.
There is an exception when the equipment cannot be fully enclosed because of the manufacturer's specifications.
If equipment cannot be fully enclosed, it would have to be screened from view.
The proposal allows existing vegetation, buildings, berms, solid fences, screen walls, parapet walls or other visually solid screens to accomplish that.
If a berm is used, it would have to average at least five feet above the adjacent average ground level, with a maximum side slope of 3-to-1. It would also have to have maintained all-season ground cover, with required screening plantings placed on the outside and top of the berm.
If fencing is used along a public right of way, landscaping would have to be placed in front of it. Barbed-wire fencing would not be allowed.
The proposed noise limits are specific
The draft establishes specific maximum noise levels for data centers.
During the day, from 7 a.m. through 9:59 p.m., the maximum would be 65 dBA and 75 dBC.
Overnight, from 10 p.m. through 6:59 a.m., the maximum would drop to 55 dBA and 65 dBC.
Those levels would be measured at the property line.
The proposal also calls for noise mitigation measures, including sound-insulated walls and equipment enclosures, particularly to minimize impacts on nearby residential areas.
There is an exception for sudden and reasonably unforeseen events outside the facility operator's control that require emergency vehicles or temporary use of emergency generators.
That means emergency situations would not automatically be treated as violations of the normal maximum sound levels.
Lighting would have an overnight cutoff
The proposal would require an applicant to provide a photometric study showing that parking areas are safe, energy efficient and compliant with applicable codes.
Lighting in parking areas and vehicle traffic ways would automatically be extinguished between 11 p.m. and 7 a.m.
There are exceptions for security lighting when an approved photometric plan is in place and for businesses operating on a 24-hour basis when an approved photometric plan is in place.
The provision does not mean a data center would go completely dark overnight. Security lighting and lighting associated with 24-hour operations could remain under an approved plan.
What about backup generators and batteries?
Battery Energy Storage Systems would be permitted as long as they comply with applicable federal, state and local regulations.
Backup generators and their fuel systems would also have to comply with applicable regulations.
Routine generator testing would be limited to 8 a.m. through 5 p.m., Monday through Friday, and would still have to comply with the proposed noise limits.
The draft also requires equipment associated with cooling, ventilation, exhaust and backup power generation to be enclosed or screened where full enclosure is not mechanically feasible.
A data center could not simply expand under the original approval
The proposed regulations would require an amendment to the Conditional Use Permit for any increase in building area, electrical demand, computing capacity or site area.
That provision could be significant for large facilities that are planned to grow in phases.
A developer could identify future expansion areas when the original application is submitted, but an actual increase in the facility's building area, electrical demand, computing capacity or site area would still require an amendment to the Conditional Use Permit.
Environmental and community impacts would have to be studied
The proposal requires a professionally prepared environmental and community impact analysis as part of the original Conditional Use Permit application.
The site plan would have to identify proposed improvements along with flood plains, wetlands, waters and cultural and historic resources located on the property and within 500 feet of the property's boundaries.
The analysis would also have to address the potential for the operation to create a public nuisance for residents.
Applicants would have to provide evidence that disposal of materials would comply with local, state and federal regulations.
The study would also have to evaluate potential positive and negative impacts of the proposed use.
The proposal says data centers should be designed and operated to maximize energy efficiency, including the use of energy-efficient servers, cooling systems and lighting.
Renewable energy sources such as solar or wind power could be considered, but the proposal does not require a data center to use renewable energy.
The proposal requires a community benefits agreement
Another significant provision is the requirement for a Community Benefits Agreement.
The draft defines that as a legally binding, negotiated agreement between the project developer and Lincoln County that outlines benefits the community and local government will receive in return for their support or non-opposition to a project.
The agreement is one of the items that would have to be addressed as part of the Conditional Use Permit application.
The proposal, however, does not establish a specific dollar amount or standardized list of benefits that every data center would have to provide.
Instead, it creates a requirement for a negotiated agreement between the developer and the county.
That means the specifics of a community benefits package could vary from one project to another.
What happens when a data center shuts down?
One of the most consequential parts of the proposal comes at the end of a data center's life.
The draft requires a decommissioning plan as part of the Conditional Use Permit application.
The county's proposed regulations specifically recognize data centers as a distinct type of use because of what the draft describes as their limited operational lifespans and the potential for specialized equipment or residual infrastructure to remain after the facility stops operating.
The decommissioning plan would have to address the dismantling and removal of equipment and other components associated with the data center.
That includes specialized electrical components and cabling, electronic equipment, cooling equipment, specialized power-generation equipment, batteries and other associated facilities.
It would also have to address removal of buildings that become condemned or uninhabitable.
But the county would not simply be relying on the developer's promise to clean up the property years later.
The proposal requires financial security before a Conditional Use Permit could be approved.
The proposed decommissioning bond would be 125% of the estimated cost
Before approval of a data center Conditional Use Permit, the landowner would have to provide a bond acceptable to the Lincoln County Commissioners.
The bond would be set at 125% of the estimated cost of decommissioning, dismantling, removing and disposing of data center-specific components and equipment.
The county would have the right to require a new engineering estimate of the probable decommissioning cost every five years.
If the estimate changes, the county could increase or decrease the required bond.
The property owner would be responsible for the fees associated with having the updated estimate reviewed and approved by an engineer chosen by the county commissioners.
The owner would also have to provide annual proof of financial responsibility to the county.
If the county proposes increasing the guarantee, the property owner would receive notice and an opportunity for an informal conference.
If the county board ultimately revises the required amount, the property owner would have 60 days to increase the bond to the new amount.
The proposal also says that if a property owner does not submit a required guarantee within 30 days of approval, or within another timeframe established by the conditions of approval, the Conditional Use Permit would be revoked by the Board.
The county would also reserve the right to hire a third-party professional to oversee decommissioning work at the property owner's expense.
When would the county consider a facility abandoned?
The draft establishes a specific definition of abandonment.
A data center would be considered abandoned if operations cease for 12 consecutive months.
Once that happens, the owner would have six months to complete the required site restoration.
That would include removing computing equipment, generators and fuel systems, cooling systems and unused utility infrastructure.
The owner would also have to restore disturbed land, remediate environmental impacts and return the site to a condition compatible with surrounding property.
If the property owner fails to complete the required work, the county could use the financial guarantee and other lawful tools to complete the work at the property owner's expense.
The financial assurance provisions are therefore designed to address not just what happens if a developer voluntarily decommissions a facility, but what happens if a facility stops operating and the owner does not complete the cleanup.
Emergency response is a major part of the proposal
The proposed regulations also devote an entire section to safety and emergency responders.
Any data center proposing battery storage or another device capable of storing energy for later use would have to demonstrate compliance with applicable stationary energy-storage standards or similar standards.
The facility would also have to include fire suppression systems specifically designed for battery storage.
The applicant would have to coordinate with Lincoln County Emergency Management to ensure adequate radio coverage for emergency responders both inside and outside the building.
That review would include the county's public safety radio communications system and mutual-aid partners.
If radio enhancement systems are needed, the property owner would pay for them.
The developer would also have to submit an Emergency Response Plan prepared by a qualified professional.
Each facility would have to maintain visible 24-hour emergency contact signage at its access entrance.
That signage would identify the company, property address, owner or representative and telephone numbers.
Updated 24-hour emergency contact information would also have to remain on file with the Lincoln County 911 Center.
The property owner would also be responsible for making sure area and mutual-aid first responders receive adequate training specific to the systems located at the facility.
If specialized fire-suppression chemicals or equipment are required because of the data center, the property owner would have to provide and pay for them.
What about traffic and parking?
The proposal requires at least one parking space for every employee, based on the maximum number of employees working on site during the largest shift.
Accessible parking would have to comply with ADA standards.
Each building would also have to provide two loading-zone spaces.
Access to the facility would have to be designed to provide efficient traffic flow and prevent congestion, taking into account the volume and type of anticipated traffic.
The proposal does not establish a specific number of construction trucks or a specific number of construction trips allowed on county roads.
Instead, the road impacts would be addressed through the required Road Use Agreement and the broader infrastructure requirements.
The county would continue receiving information after approval
The proposed regulations include an ongoing reporting requirement.
All reports submitted to local, state and federal agencies would also have to be submitted to the Lincoln County Planning Office.
In addition, the facility would have to submit annual reports showing water consumption and electric consumption.
That means the county would have a continuing source of information about the facility's resource use after construction and operation begin.
What the proposal does not do
For all of the requirements contained in the draft, there are also several things the proposal does not establish.
It does not create a maximum acreage for a data center.
It does not establish a maximum building size.
It does not establish a specific maximum amount of water that a data center may consume.
It does not prohibit water cooling altogether.
It does not require every data center to generate 100% of its own electricity. The behind-the-meter provision says dedicated generation and energy storage sufficient to offset 100% of projected electrical demand may be required.
It does not establish a specific dollar amount for a Community Benefits Agreement.
And it does not establish a blanket prohibition against data centers operating near every residence or sensitive location.
Instead, many of those questions would be addressed through the Conditional Use Permit process, technical studies, site-specific conditions and the county's authority under the proposed regulations.
Where the biggest questions may come from
The draft is considerably more detailed than the county's existing data center language, but there are still areas where the exact application of the rules will matter.
Water is one example.
The proposal requires a developer to demonstrate that adequate water is available and that withdrawals and discharges will not adversely affect nearby groundwater or surface water, but Section 8.22 does not establish a single numerical water-use limit that applies to every project.
The Community Benefits Agreement is another area that could generate discussion. The proposal requires one, but does not establish a standardized formula or dollar amount.
The behind-the-meter power provision also leaves some discretion. It allows the county to require enough dedicated generation and energy storage to offset 100% of projected electrical demand, but does not spell out in the section exactly when that requirement would be imposed.
The proposal also gives Lincoln County significant authority to require additional setbacks based on site-specific conditions, hire third-party professionals at the property owner's expense and require financial guarantees.
How those powers are used could ultimately be just as important as the standards themselves.
What happens next?
This document is a draft.
The Planning Commission will review the proposed regulations as part of the county's zoning process, and the language could change before it ultimately reaches the County Commissioners for final consideration.
That means the July 16 draft should be viewed as a snapshot of what county officials are currently considering, rather than as the final rules governing data centers in Lincoln County.
For residents, that distinction is important.
The proposal establishes the framework the county could use to evaluate future data center projects, but it does not by itself approve a specific project.
A future developer would still have to go through the applicable land-use and Conditional Use Permit process and demonstrate compliance with the requirements in place at that time.
The bottom line
Lincoln County's proposed Section 8.22 represents a substantial shift from broad statements about how data centers should operate to a much more detailed set of standards for how they would be reviewed, built, operated and eventually decommissioned.
The proposal puts significant responsibility on the developer.
A company seeking approval would have to demonstrate that adequate water and wastewater capacity exists, show that the project would not materially impair electrical reliability, pay for project-related infrastructure, address road impacts, provide technical studies, address emergency response and account for environmental and community impacts.
The proposal also establishes measurable standards for noise and lighting, requires screening of major equipment, sets a minimum 10-acre site size and establishes setbacks based on the county's industrial standards.
Perhaps most significantly, the proposal attempts to address what happens after the facility is no longer operating.
A developer would have to submit a decommissioning plan before receiving approval and provide a bond equal to 125% of the estimated cost of decommissioning. If a facility stops operating for 12 consecutive months, the proposal would give the owner six months to complete the required site restoration.
The proposal therefore is not a ban on data centers.
Instead, it creates a detailed set of conditions under which Lincoln County could consider allowing them.
Whether those conditions are strong enough, too restrictive, not restrictive enough or need to be changed is ultimately a question for the public, the Planning Commission and the County Commissioners as the county moves through the approval process.
For anyone who wants to make that decision based on the actual language rather than summaries, the entire nine-page July 16 draft is available below.
Read the proposed regulations for yourself
The document below is the July 16, 2026 draft of Lincoln County's proposed Section 8.22, Data Centers.
This article explains the proposed regulations as written in the July 16 draft. The proposal is subject to change and is not currently the final county regulation.