Knoxville joins list of areas pressing pause on data centers
The City of Knoxville, Tennessee, passed an emergency ordinance enacting a one-year moratorium on large data center permitting and construction. This decision stems from concerns regarding potential impacts on neighborhoods, resource demand (energy and water), and greenhouse gas emissions. Several other Tennessee counties have also implemented or are considering similar pauses or regulations.
The City of Knoxville, Tennessee, passed an emergency ordinance on Tuesday, July 8, 2026, implementing a one-year moratorium on the permitting and construction of large data centers within city limits. The resolution outlines numerous concerns, including the substantial size of these facilities, their potential negative impacts on surrounding neighborhoods, the significant demand they place on public resources such as energy and water, and their contribution to greenhouse gas emissions, which conflicts with Knoxville's reduction goals.
Mayor Indya Kincannon initiated the process in June by requesting Knoxville-Knox County Planning staff to research best practices and potential guardrails for data centers. The moratorium allows staff time to develop recommendations for zoning code changes. A 'large data center' is defined as one capable of using 10 megawatts or more of electricity for data processing, storage, web hosting, cryptocurrency mining, or other services. The city emphasized that no data center proposals are currently pending.
Knoxville joins a growing list of Tennessee localities addressing data center development. Knox County Commission approved its own one-year moratorium last month. Other counties that have enacted pauses include Loudon County (six months, June 30), Anderson County (two years, June 15), and Morgan County (two years, June 12), all citing similar concerns over infrastructure strain, environmental impact, and lack of zoning regulations. Blount County and Rockwood have already approved specific regulations, while Sweetwater and Crossville are in the process of considering their own measures.