Crossville Council Halts Development Of New Data Centers

The Crossville City Council has approved the second reading of an ordinance to implement a 24-month moratorium on new data center development. Mayor R.J. Crawford stated that this temporary halt is a protective measure, enabling the Planning Commission to collaborate with Cumberland County on developing unified standards for such facilities. The city opted for a moratorium over a permanent ban to mitigate potential legal liabilities and multi-million dollar lawsuits from developers.

Mayor Crawford emphasized the need to establish "guardrails" to prevent the proliferation of "massive data centers, hyperscale as they say it." He noted the city's evaluation of noise standards, water conservation requirements, and the impact on the electrical grid. Crawford highlighted the challenge posed by the city's lack of traditional zoning in balancing private property rights with community regulation. Jacob McGonigle, Diana Health Director of IT, warned that modern AI data centers demand substantial power—up to 1,500 megawatts for some projects—and produce constant noise. Citizen John Murray voiced concerns about environmental issues like water consumption and wastewater discharge, advocating for a permanent ban to protect farmland. The ordinance is scheduled for a third and final reading at the upcoming August meeting of the Crossville City Council.