Planning commission recommends one-year moratorium on AI data centers, crypto mining
July 23, 2026 | Blount County, Tennessee
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The Blount County Planning Commission recommended a one-year moratorium on AI data centers, cryptocurrency mining and blockchain computing centers and asked staff and the county attorney to draft associated zoning amendments for legal review.
Thomas Lloyd, a planning staff member, told commissioners the county commission's resolution (listed in meeting materials as "26 0 6 0 22") directs the planning commission to prepare zoning-ordinance amendments, starting with clear definitions. Lloyd read a federal-style definition for data centers and for proof-of-work mining, and said staff preliminary GIS work showed six industrial zoning areas in county jurisdiction. "Data center, according to the federal government, the term data center is any facility that primarily contains electronic equipment," Lloyd said. He noted a proposed 5,000-foot buffer from certain residential zoning districts and from residences, schools and churches and warned that a strict 5,000-foot rule could effectively leave no permissible industrial land that met the distance requirement.
Commissioners debated scope and legal risk. Commissioner Wells warned against overly broad language that could sweep up ordinary, single-building data operations: "All data centers are not alike... we don't want to create it so generic that it ends up hurting somebody that's got a simple, you know, data center that's in within one building." Commissioner McClellan and others urged consideration of a moratorium while zoning language is drafted; McClellan referenced other counties that have adopted temporary pauses. Commissioner Bridal (addressing local cemetery concerns) asked that the draft specifically account for cemeteries near proposed sites.
After discussion, the commission voted to recommend a one-year moratorium to the county commission while staff prepares a draft ordinance and legal reviews the proposal. The motion to recommend the moratorium passed without recorded roll-call tallies in the transcript.
Thomas Lloyd, a planning staff member, told commissioners the county commission's resolution (listed in meeting materials as "26 0 6 0 22") directs the planning commission to prepare zoning-ordinance amendments, starting with clear definitions. Lloyd read a federal-style definition for data centers and for proof-of-work mining, and said staff preliminary GIS work showed six industrial zoning areas in county jurisdiction. "Data center, according to the federal government, the term data center is any facility that primarily contains electronic equipment," Lloyd said. He noted a proposed 5,000-foot buffer from certain residential zoning districts and from residences, schools and churches and warned that a strict 5,000-foot rule could effectively leave no permissible industrial land that met the distance requirement.
Commissioners debated scope and legal risk. Commissioner Wells warned against overly broad language that could sweep up ordinary, single-building data operations: "All data centers are not alike... we don't want to create it so generic that it ends up hurting somebody that's got a simple, you know, data center that's in within one building." Commissioner McClellan and others urged consideration of a moratorium while zoning language is drafted; McClellan referenced other counties that have adopted temporary pauses. Commissioner Bridal (addressing local cemetery concerns) asked that the draft specifically account for cemeteries near proposed sites.
After discussion, the commission voted to recommend a one-year moratorium to the county commission while staff prepares a draft ordinance and legal reviews the proposal. The motion to recommend the moratorium passed without recorded roll-call tallies in the transcript.
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