Data Center Moving Forward in Lee County
Article: The Sanford Herald
Lee County commissioners said Thursday that the proposed data center on Lower Moncure Road will move forward under existing county development standards and that the board will take no further action on the project.
In a statement released Thursday afternoon, the Lee County Board of Commissioners said the project has received a building permit and, based on legal advice, cannot be stopped by a moratorium or made subject to development standards adopted during the project’s vested period.
“There is no further vote or action that this Board will take concerning the Lower Moncure Road project,” the statement said.
The statement comes amid months of public opposition to the proposed data center and calls for county officials to impose a moratorium and strengthen regulations governing such developments.
Commissioners also provided a timeline of the project and defended the county’s handling of it.
The property involved in the project was rezoned from Residential Agricultural to Light Industrial in September 2025. Commissioners said that once the property was rezoned, it could be developed for any use permitted in the Light Industrial district regardless of what the applicant said at the time about its intended use.
County planning staff began researching data centers and possible regulations in late October 2025 after a news reporter contacted the department about a potential data center project in the Cumnock area.
Staff determined the county’s Unified Development Ordinance did not specifically identify data centers or include supplemental safeguards for them. Under the county’s interpretation of state law, a use not specifically addressed by the ordinance must be placed in the zoning district that most closely fits the use. County officials determined that data centers fit within the Light Industrial district.
Planning staff then began developing supplemental standards for data centers. The proposed regulations went through the Joint Planning Commission, which includes representatives from Lee County, Sanford and Broadway.
The county said the Sanford Area Growth Alliance informed commissioners during a closed session Feb. 16 that a data center developer intended to submit an application for a project in the Lower Moncure area.
According to the county, an application submitted at that time would have been subject only to the existing Light Industrial development standards. SAGA asked the developer to wait until the county completed its new data center regulations before submitting the application, the statement said.
Commissioners and the Lee County Planning Board held a workshop on the proposed standards April 6. Following a joint public hearing April 20, commissioners adopted the UDO amendment establishing supplemental standards for data centers.
An application was submitted June 1 by Jonathan Rhine, property owner Jon Keener and project manager Steve Russell.
The application included a site plan for a building, fire water tank, fire pump house and other infrastructure on the Lower Moncure Road property. A master plan showed additional buildings that could be constructed in phases.
Because the application was filed after the new standards were adopted, the county said the project must comply with the data center regulations approved April 20. Data centers are permitted by right in both Light Industrial and Heavy Industrial zoning districts under those standards.
“Based upon legal advice, the Board acknowledges that the current data center project on Lower Moncure Road will proceed and be subject to the current UDO standards,” commissioners said.
The board said the issuance of a building permit also means a moratorium could not stop the project under state law. It also said revised UDO standards adopted in the immediate future would not apply during the project’s vested period.
County planning staff will continue reviewing regulations adopted by other jurisdictions and suggestions submitted by residents, commissioners said. Future proposed changes could be presented to the Joint Planning Commission.
The board also responded to accusations from members of the public concerning the project.
Commissioners said no board member or county administrative staff member has a financial or ownership interest in the property or project. They also said no commissioner or administrative staff member signed a nondisclosure agreement concerning the project or received money, kickbacks, promises or other improper incentives.
The county said it provided no economic development incentives or other funding for the project.
Commissioners said the county attempted to protect residents by adopting data center regulations before an application for the Lower Moncure Road project was submitted.
The board encouraged residents with concerns about data centers to contact state and federal representatives to seek stronger legislation.
Although commissioners said they will take no further action on the Lower Moncure Road project, county staff will continue to monitor and oversee the development as it does other construction and development projects in Lee County.
