ROCKINGHAM — The Rockingham City Council approved holding a public hearing Sept. 8 for a conditional rezoning request for a proposed data center at 316 Old Cheraw Highway.
Terra Nexus Land Fund I LLC, which purchased the property in June, submitted a request to rezone the property from high-density residential to conditional light industrial.
The site includes two properties previously annexed and rezoned for residential development. The Clontz property was annexed and rezoned from R-20 to R-7 on May 13, 2025, at the request of Randy and Susan Clontz. The Moss property was annexed and rezoned from R-20 to R-7 on Oct. 14, 2025, at the request of Ben and Amber Moss.
Assistant City Manager John Massey said Terra Nexus initially intended to develop a residential subdivision on the property but encountered a “little snag.”
“The homebuilders that they partner with to build the houses and subdivisions that they develop, had indicated that they were hesitant to take on this project because of the proximity of the wastewater treatment plant,” explained Massey.
Massey said Terra Nexus then considered other development opportunities for the property, including a data center.
The request before the city is for conditional rezoning, meaning the rezoning would be tied to the specific development plan and conditions presented for the site rather than allowing all uses generally permitted within the zoning district.
“As you know, conventional rezoning, you rezone to a zone and any of the uses that’s allowed in the table of uses in our Unified Development Ordinance could be located there is either permitted or conditioned use— that is not this. This is a site-specific development plan rezoning with conditions attached to it,” said Massey.
According to the city’s Unified Development Ordinance, the light industrial district “accommodates wholesale, warehousing, industrial research, and light manufacturing. Conditional or custom site-specific standards can be applied to balance industrial growth with nearby property protections.”
The proposed site plan includes four single-story buildings of approximately 155,800 square feet each with equipment yards. Massey said each building would have 48 diesel generators designated for backup power rather than as a primary power source. The generators would periodically run for maintenance and upkeep.
Massey also outlined the potential economic impact of the project, comparing the proposed data center with residential development on the approximately 165-acre site.
Under figures presented to the council, a hypothetical residential development of 330 to 825 housing units was estimated to have a tax value ranging from $66 million to $298 million. The proposed data center was presented as an estimated $1.2 billion investment.
Massey said Rockingham’s current tax base of approximately $824 million generates about $4.4 million annually. At the city’s current tax rate of 55 cents per $100 of valuation, he estimated the proposed data center could generate approximately $6.6 million annually if the project comes to fruition.
“That’s substantial. You start looking at the possibilities, if this were to come to fruition, significantly reducing the tax burden on our citizens by lowering the tax rate,” said Massey. “You’ve got money all of a sudden to do capital improvements that we’ve otherwise not been able to afford. Paving streets, building sidewalks, improving parks and recreation facilities. So, very significant economic development opportunity.”
Massey said no city incentives are proposed for the project.
He also addressed concerns surrounding the potential development, including noise, water usage, traffic and its proximity to residential properties.
The proposed site plan calls for preserving a 300-foot-wide buffer of existing vegetation along the northeastern property line closest to Farmstead Court. Additional vegetation would be added if needed to create a complete vegetative buffer from neighboring residential properties.
A 100-foot-wide buffer of existing vegetation would also be preserved along the Old Cheraw Highway frontage and supplemented if necessary.
Massey said noise was among the city’s initial concerns, prompting officials to request an operational noise study. According to Massey, the study estimated a maximum noise level of 48.4 decibels at the residential property line. He said the Federal Energy Regulatory Commission has a guideline of 55 decibels near noise-sensitive areas for these types of facilities.
“We wanted to know what the impact was on the adjoining residential neighborhoods,” Massey said.
Massey said he used a noise-monitoring app at his home and other locations around Rockingham to get an idea of existing noise levels.
“48 decibels is quiet. As a matter of fact, 48 decibels it’s hard for me to get 48 decibels in my yard… The normal sounds of town as I call it, the ambient noise, is running 50-55 [decibels,] Massey said.
Massey added that the study did not account for potential noise-reduction measures.
“There’s all sorts of technology available to… soften noise if it’s needed, and they intend to use that if it is found to be needed,” Massey said.
Councilwoman Holly Howe later asked whether the study accounted for the backup generators. Massey said it did not. He added that if the facility were developed and generated a noise complaint, city code enforcement officers could investigate and issue a notice of violation if warranted.
Howe also asked whether the data center’s energy usage could affect residential electric bills. Massey and City Manager Monty Crump said utility rates are set by the N.C. Utilities Commission.
When Howe asked about the potential effect on surrounding residential property values, Massey said he could not make that determination.
“That’s not something I can answer,” Massey said. “I think that’s a question for an appraiser… We’re trying to put safeguards in place. We’re buffering for aesthetics so you minimize the appearance of it… so that it’s not a detriment. So you can still sit out in your yard and enjoy being outside without having to listen to the noise.”
Water usage was another issue discussed during the presentation. Massey said an earlier version of the project was expected to require between 70,000 and 75,000 gallons of water per day, an amount he said the city could provide.
The design has since been revised to use a closed-loop cooling system that would allow water to be continuously recycled. Outside of the cooling system, Massey said daily water use would primarily be associated with the approximately 30 employees expected at the facility.
“So once they fill their cooling system, they will recycle that continuously. Occasionally, they’ll need to flush it, refresh it,” Massey said.
Massey said the property had been identified in the city’s land use plan as a potential location for residential development. Industrial development had previously raised concerns because of the potential for tractor-trailer traffic, though Massey said traffic associated with the proposed data center would primarily be a concern during construction.
He pointed to the city’s land use plan, which identifies improving the local economy through supporting existing businesses and industries and recruiting new businesses and industries as a primary goal.
Massey said the proposed project is “certainly consistent” with that goal.
“Residential… may not be the highest and probably is not the highest and best use of the property… When you look at all the factors in it, it’s a positive thing for the city,” Massey said.
Before the meeting began, resident Russ Fincham, who has expressed opposition to data centers, raised concerns about whether the property could later return to residential zoning if it were rezoned for industrial use.
Massey explained that because the request is for conditional rezoning, approval would limit development to the data center proposal and conditions presented to the council.
“If the data center falls through, to do anything else with that property, they have to come back to you for a rezoning— period. There’s no way around that,” Massey said.
Mayor John Hutchinson said he appreciated the amount of information being provided as the proposal moves through the city’s review process.
“Nothing’s being decided without having everything on the table as to what it is, what they propose, what restrictions we’re looking to put on them, and then having a multi-step process even to get there,” said Hutchinson. “I appreciate the transparency that the city staff has allowed us to have in this process.
Crump and Massey encouraged residents with questions about the proposal to contact them.
“And this is the time to do it while we’re considering it,” said Councilman Bennett Deane. “Because once it’s done… it’s done. So if there’s a concern or something you could suggest that might improve the conditions, we’re open to that— and it’s time to do that… before we move forward.
Hutchinson told attendees that the council would not hear public comments about the proposed data center or rezoning during the “Business by Visitors” portion of the meeting.
“We will not be taking comments on data centers tonight, or on the rezoning. The appropriate time for that will be during the public hearing next meeting,” Hutchinson said.
The public hearing on the proposed conditional rezoning will be held Sept. 8 at 6:30 p.m. at Rockingham City Hall.