City Adopts Data Center 18 Month Moratorium on First Reading
The City of Smithville, Tennessee, has adopted an 18-month moratorium on data center and cryptocurrency mining operations. This temporary pause allows the city to study the impacts of these technologies and draft comprehensive zoning and land use regulations. The ordinance addresses concerns such as noise pollution, electrical grid demands, and water consumption.
The City of Smithville, Tennessee, through its Board of Aldermen, has enacted a temporary 18-month moratorium on the acceptance and processing of applications for high-density computing, data centers, and cryptocurrency mining operations. This ordinance, adopted on its first reading, aims to provide the city with sufficient time to study the impacts of these technologies and to draft comprehensive zoning and land use regulations. A second and final reading, following a public hearing, is scheduled for August 3.
Currently, data centers are not explicitly permitted within Smithville's existing zoning ordinance, and no related land use applications have been filed. City Attorney Vester Parsley explained that the moratorium allows the city to learn more about these industries, citing their significant power consumption. He noted that McMinnville, a neighboring city, has implemented a similar moratorium due to a lack of understanding regarding how to regulate such operations.
The ordinance cites specific municipal concerns associated with high-density computing and crypto mining, including continuous high-frequency noise pollution from cooling systems, exceptional electrical grid load demands, excessive water resource consumption, and the rapid generation of electronic waste. The Board of Aldermen highlighted that establishing these operations without strict oversight, robust noise mitigation, and environmental protections poses a direct threat to the city's "quiet enjoyment, small town character, economic stability, and overall harmony."
The moratorium grants the Smithville Planning Commission, Codes Enforcement, and the Board of Aldermen time to study these impacts, draft necessary zoning amendments, and conduct public hearings without pressure from pending applications. The ordinance defines "Cryptocurrency Mining" or "High-Density Computing" as operations of data processing facilities, server farms, or specialized computer hardware characterized by high energy consumption and intensive mechanical cooling requirements. It will remain in effect for 18 months or until permanent zoning amendments are adopted.