Tyler Planning and Zoning Commission denies special use permit for proposed data center
The City of Tyler Planning and Zoning Commission denied a special use permit for a proposed 12-megawatt Bitcoin mining data center by Vulcan Core and Barrio Energy in a 5-2 vote. The decision followed concerns from city planners about the project's inconsistency with the Future Land Use Map and extensive public opposition citing noise, power consumption, property values, and environmental impacts.
The City of Tyler Planning and Zoning Commission on Tuesday denied a special use permit for a 12-megawatt Bitcoin mining data center proposed by Vulcan Core and Barrio Energy near downtown Tyler. The commission voted 5-2 against the project after a lengthy discussion and hearing from both proponents and 26 residents who voiced strong opposition.
Kyle Kingma, director of planning for the City of Tyler, recommended denying the permit, stating the proposed activity was inconsistent with the city's Future Land Use Map (FLUM) and Tyler Tomorrow Comprehensive Plan. He emphasized that the project's operational characteristics had not demonstrated it could proceed without adversely affecting neighboring properties, particularly regarding noise standards.
Residents expressed significant concerns about potential noise pollution, impact on power infrastructure, decreased property values, environmental safety, and water use. Phillip Olivares, a resident operating a building next to the proposed site, highlighted worries about noise and the limited job creation (7-10 jobs) compared to the potential negative impacts on community quality of life and growth. Councilwoman Petra Hawkins had previously facilitated a public meeting where similar concerns were raised.
Despite Vulcan Core representatives, Mark Buntsev and Mitch Brown, presenting an independent sound study suggesting noise levels would be below ambient sound and offering 15 operational conditions, the commission ultimately sided with the planning department's recommendation, citing misalignment with FLUM requirements. Board members James Wynne and Roy Martinez cast the two dissenting votes. The project, if approved, would have still required city council approval.