Federal lawsuit targets ‘sweeping’ data center ban in Hawkins Co.

The Beacon Center of Tennessee has filed a federal lawsuit against Hawkins County, Tennessee, on behalf of Exotic Ridge crypto company, challenging the county's ban on data mining centers. The Hawkins County Commission enacted the ban in September, following interest from Exotic Ridge in building a mine in Vols Gap. The lawsuit alleges that the county's ban violates state and federal law, arguing it is overly broad and prevents an entire industry without specific targeting. A representative from the Beacon Center highlighted that the ban offers no options for variances, appeals, or exceptions, which is problematic, especially given their client's prior investments in their business. Additionally, the lawsuit claims the resolution enacting the ban suffered from several procedural issues, including a lack of proper notice, which violates Tennessee law. The Beacon Center further asserts that Hawkins County does not have an official zoning code and thus does not formally regulate private property. Hawkins County leaders, including Mayor Mark De Witt, have indicated they are awaiting official service of the lawsuit and more information. Mayor De Witt stated that it is premature to determine the county's next steps based solely on media reports.