Mountain City to consider rezoning for AI data center
Mountain City officials will consider rezoning property at 1455 South Shady Street for a proposed modular AI factory data center backed by Blue Sky AI. The project would require planning commission review, advertising, a public hearing and two readings by the city board; officials expect tax revenue but significant electricity use.
Mountain City’s Planning Commission is scheduled to consider rezoning property at 1455 South Shady Street for a proposed modular AI factory data center. Mayor Jerry Jordan said the property would need to move from its current zoning designation to an M2 industrial classification, which the city uses for Bitcoin operations and AI data centers.
The rezoning would not immediately authorize construction. If the Planning Commission advances the request, the property would be advertised for 30 days before the Board of Mayor and Aldermen considers it on first reading, followed by a public hearing and second reading. Jordan identified Blue Sky AI as the company behind the proposal and said he would review its plans with the company. He said the project could generate tax revenue, use substantial electricity, consume relatively little water and is not expected to create significant noise concerns.