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Home My WebLink AboutPD PowerPoint (PL-CCI-2026-000018) COUNTY COUNCIL INITIATED BILL N0. 170 RELATING TO ZONING FOR DATA PROCESSING FACILITIES AND DATA CENTERS Amendment to Chapter 25 (Zoning), Article 1 of the Hawaii County Code Purpose of Bill No. 170 is Distinguish data processing 20 Revise the existing definition and facilities from modern data centersexpressly exclude data centers Create a new definition for Keep data processing facilities 3' industrial-scale data centers 4. permitted in MCX; data centers are not permitted in any zoning district TIONALE "According to the County Council, the existing definition is broad and could allow a data center to be interpreted as a permitted use in MCX districts as a data processing facility." Proposed Definitions in Bill 170 "Data processing facility" means an establishment primarily involved in "Data center" means a facility used for the industrial-scale operation of the compiling, storage and computer systems maintenance of documents, records, and associated and other types of information in equipment for the processing. digital form utilizing a mainframe computing transmission, or computer. This term does not include dissemination of digital data, and that data centers, general business offices, requires supporting infrastructure computer-related sales bevond that typically accessory or establishments, and business or incidental to office, commercial, or personal services. public institutional uses. ZoningContext — Data ProcessingFacilities MCX DISTRICT DATA PROCESSING FACILITIES DATA CENTERS Industrial-Commercial Defined but Not Mixed Use Permitted under Permitted by Bill HCC § 25-5-132(a) 170 Ordinance 96-160 created the MCX zoning district to accommodate emerging technology and compatible industrial-commercial uses. Bill 170 preserves the original permitted use of data processing facilities while drawing a new boundary around modern data centers. What Changes and What Remains the Same? Current Code Under Bill 170 Data processing facility is defined Definition is revised Data processing facility is permitted in Still permitted in M CX MCX No separate data center definition New data center definition Potential overlap in interpretation Uses clearly distinguished Data centers are not separately Data centers remain prohibited in all identified zoning districts unless later authorized COUNTY COUNCIL INITIATED BILL NO . 170 PLANNING DIRECTOR ANALYSIS WhyDistinguishing Matters 1990s 2000s-2010s TODAY Data processing Emerging digital Modern standalone data facilities were added infrastructure including centers may have to reflect emerging artificial intelligence, infrastructure and operational technology. digital storage, etc... characteristics that differ from data processing facilities. The land-use category has evolved from an office-like activity into a distinct, infrastructure-intensive use. Comparative RegutatoryApproaches INDUSTRIAL DISTRICTS OVERLAY DISTRICTS TEMPORARY MORATORIUMS Counties such as Counties such as Prince Boone County has Loudoun, Fairfax, William and Hancock use adopted a temporary Albemarle, Tippecanoe mapped or site specific moratorium while direct data centers to overlay approaches tied regulations are developed. specific industrial or to industrial areas and commercial districts, infrastructure. often with size limits or discretionary review. II These examples are comparative approaches, not binding national standards. Larger or more intensive facilities are often subject to discretionary review. Planning Director's Recommendation Overview Supports Bill 170's distinction between modern data centers and traditional data processing facilities OComplete exclusionof data centers may unnecessarily preclude appropriately scaled facilities OStandalone data centers are more appropriately accommodated in the General Industrial(MG) District 3O. Subject to asize limitation and discretionary review. COUNTY COUNCIL INITIATED BILL NO . 170 PLANNING DIRECTOR RECOMMENDATION The Planning Director recommends that the Planning Commissions send a favorable recommendation of Bill 147 to the County Council with suggested revisions in the recommendation report. The recommendations are as follow. Recommendations 1 & 2 — Permitting Paths <_ 10,000 SQ. FT. � > 10,000 SQ. FT. DATA CENTER DATA CENTER USE PERMITTED USE PERMIT REQUIRED General Industrial (MG) Site-specific review amend HCC district subject to § 25-4-19 section §§ 25-2-61 and 25-5-152(b) The threshold changes the review path and not the need to meet applicable development standards. Why a 10,000-Square-Foot Threshold? SMALLER FACILITIES I F LARGER FACILITIES • At or below 10,000 sq. ft. Above 10,000 sq. ft. • Permitted use in MG Use permit and site-specific review BALANCE The threshold supports access for smaller facilities while adding oversight for developments with greater potential impacts. Recommendation 3 — Amended Definition of "Data Center-9-9 y ""Data center" means a building, portion of a building, or group of buildings used principally for an industrial-scale operation that houses computer systems, servers, networking equipment, or similar equipment for the processing, computing, storage, transmission, hosting, or dissemination of digital data, together with supporting electrical, cooling, ventilation, security, fire-suppression, backup-power, and telecommunications equipment or facilities. The term does not include computer servers, server rooms, telecommunications equipment, or similar data- processing equipment that: 1) is located on the some building site as an otherwise permitted principal use; 2) is accessory and subordinate in area, function, and operation to that principal use; 3) primarily supports the operation of that onsite principal use; and 4) is not separately leased, licensed, or operated as a data center or as a data-processing, hosting, storage, or transmission service for unrelated offsite users." Recommendation 3 — Amended Definition of "Data Center-9-9 F_ -I I=- An industrial-scale data center LEGAL EXCLUSIONS — ALL FOUR MUST APPLY facility that houses computer 1. Located on the same site as a permitted equipment and supporting principal use infrastructure. 2. Accessory and subordinate in area, VS. function, and operation Onsite data center facilities (ie /T 3. Primarily supports the onsite principal. use equipments that remains accessory 4. Not separately leased or operated for when it supports a permitted principal use. offsite users REASON: Distinguish incidental onsite IT infrastructure from standalone or tenant-operated data center. Recommendation 4 — Standards for Data Centers (§ 25-4-19) Create a new section in HCC for data centers as follows: "Section 25-4-19. Data centers 1. For purposes of this section, "gross floor area devoted to data center use" includes floor area containing computer systems, servers, networking equipment, or supporting electrical, cooling, ventilation, security, fire-suppression, backup-power, and telecommunications equipment principally serving the data center use. 2.The gross floor area of all data center buildings and portions of buildings shall be aggregated when located on the same building site, on contiguous building sites under common ownership or control, or as part of a unified or phased plan of development. 3.A data center development shall not be divided among separate buildings, building sites, ownership entities, tenants, applications, or phases for the purpose of avoiding the Use Permit threshold. 4.Any change or expansion that causes the aggregate gross floor area devoted to data center use to exceed 10,000 square feet shall require approval of a Use Permit prior to construction or establishment of such change or expansion. Recommendation 4 — Standards for Data Centers (§ 25-4-19) Create a new section in HCC for data centers as follows: (cont.) 5. For a data center requiring a Use Permit, the following matters may be considered, as applicable, through the Use Permit review process and conditions of approval: A.Electrical demand and capacity, generation source, necessary transmission or distribution improvements, and cumulative effects on the electrical system; B.Water source and demand, cooling technology, wastewater generation, and water- conservation measures; C.Operational and emergency-generator noise, including preconstruction modeling and post-occupancy verification, as appropriate; D.Emergency access and response, fire suppression, hazardous materials, battery energy storage systems, and emergency-response planning; E. Building mass and setbacks, landscaping, equipment screening, exterior lighting, and compatibility with surrounding land uses; and F. Construction and operational traffic, solid and electronic waste, heat rejection, air emissions, and greenhouse-gas considerations." Recommendation 4 - Why Standards and Aggregation Matter One Consistent Threshold No Project Segmentation These standards provide a consistent method for applying the 10,000-square- The aggregation provisions prevent foot threshold and ensure that the overall larger projects from being divided to scale of a data center development is avoid discretionary review and clarify when an expansion requires a Use considered, including related buildings, sites, and phases. Permit. Site-Specific Evaluation Targeted Conditions of Approval Because data centers can vary substantially in their energy and water Addressed through appropriate demands, cooling systems, noise, conditions of approval. emergency systems, and other operational impacts, the identified considerations allow these matters to be evaluated on a site-specific basis PlanningCommission Action and Accessibility 120 DAYS NOV. 4, 2026 JULY 7, ward � Leeward 2026 Wind COUNTY COUNCIL Recommendation Three (3) hearings Referral Planning Commission review deadline The Windward and Leeward Planning Commissions are required to act on Bill 170. Each commission may recommend approval in while or in part, approval with modifications or rejection. The recommendations will be forwarded separately and concurrently to the County Council. Failure to act within the 120-day period constitutes an unfavorable recommendation