Loudon County approves six-month moratorium on new data centers
The Loudon County Commission has approved a six-month moratorium on new data center projects, specifically targeting facilities with a peak electric demand of 50 megawatts or more. This temporary halt allows the county to review and update zoning and planning rules for data centers. The decision follows similar actions in neighboring Knox County and Knoxville, driven by concerns over massive energy consumption by these facilities.
The Loudon County Commission recently voted to enact a six-month moratorium on the approval of new data center projects. This temporary freeze halts construction and permitting for large-scale facilities and requires the Loudon County Planning and Codes Director to review current guidelines and recommend updated county zoning and planning rules for data centers.
The moratorium specifically applies to facilities projecting a peak electric demand of 50 megawatts or more within their first three years of operation. It exempts state-owned or operated facilities and data centers primarily supporting broadband internet or telecommunication networks.
Loudon County's action mirrors similar measures taken by neighboring jurisdictions, with Knox County having enacted a one-year moratorium and Knoxville Mayor Indya Kincannon planning a temporary pause. This pushback from local governments stems from growing concerns over the substantial energy consumption of data centers, which accounted for approximately 18% of the Tennessee Valley Authority's total industrial power load last year, a figure projected to double by 2030, straining regional grid capacity.