Smithville Enacts 18-Month Moratorium on Data Centers

Smithville Enacts 18-Month Moratorium on Data Centers

News ClipUpper Cumberland Business Journal·Smithville, Dekalb County, TN·8/4/2026

The Smithville Board of Aldermen has enacted an 18-month moratorium on data centers and cryptocurrency mining operations within city limits. This delay will allow city officials to study the issue and consider updated zoning and land use regulations. Concerns cited include noise pollution, strain on the electrical grid, water consumption, and electronic waste.

moratoriumzoningelectricitywaterenvironmental
Gov: Smithville Board of Aldermen, city officials

The Smithville Board of Aldermen has officially enacted an 18-month moratorium on the acceptance, processing, and approval of permits for high-density computing, data centers, and cryptocurrency mining operations within city limits. The ordinance, which received final approval after its second reading, aims to provide city officials with sufficient time to study the implications of such operations and develop comprehensive zoning and land use regulations.

Currently, data centers are prohibited under Smithville's existing zoning ordinance. Ordinance #543, which imposes the temporary halt, cites various concerns including noise pollution from cooling systems, potential strain on the local electrical grid, high water consumption, and the generation of electronic waste.

The city officials believe that without strict municipal oversight, these operations could threaten Smithville's small-town character and overall harmony. The moratorium will remain in effect for eighteen months or until the Board of Aldermen adopts permanent zoning amendments regulating these uses, reserving the right to extend the period if necessary. No data center land use applications have been filed with the city prior to this ordinance.