Nashville passes data center zoning and permit moratorium
Nashville's Metro Council passed new data center zoning regulations and enacted a permit moratorium until Dec. 1. These actions follow significant public opposition, especially concerning a DC Blox project near the Nashville Zoo. The council also advanced legislation for eminent domain to acquire the DC Blox property.
Nashville's Metro Council has voted to establish new regulations for data center development and implement a moratorium on data center permits until Dec. 1. Additionally, the council advanced Mayor Freddie OConnell’s legislation to use eminent domain to purchase a property adjacent to the Nashville Zoo, where DC Blox is planning to build a data center.
This legislative push follows considerable public interest and opposition to data centers within Nashville, including a proposed Fisk University on-campus data facility that drew criticism, and significant backlash against DC Blox’s plans near the zoo. Councilmember Rollin Horton sponsored two linked bills, BL2026-1391 and BL2026-1392, which unanimously passed third reading. These bills establish comprehensive zoning regulations for data centers, including specific distance requirements from sensitive areas like schools, environmental restrictions, and a prohibition on the largest data centers.
Councilmember Courtney Johnston introduced the third bill, BL2026-1448, which institutes the moratorium on new data center permits. Initially tied to the passage of the zoning regulations, an amendment by Johnston extended the moratorium through Dec. 1, irrespective of the regulations' immediate passage, allowing further legislative review. The council also approved nine amendments to the zoning bill, which clarify language, mandate emergency response and power resiliency plans, establish new notice requirements, demand power and water usage reporting, require public disclosure of annual compliance reports, and impose restrictions on on-site power generation and noise levels.
Mayor OConnell’s eminent domain legislation passed its second of three readings, with a final vote scheduled for Aug. 4. This move is deemed necessary because DC Blox had already applied for permits before the new zoning rules were enacted, potentially exempting its project from the new regulations due to state law. The city would need to pay fair market value for the property, which sold for $23 million last week and was valued at $37 million by the county last year, and prove the necessity of the purchase in court. The legislation faces continued debate, particularly regarding its financial implications, with Councilmember Quin Evans Segall raising questions about the city's use of funds.