Tyler Planning and Zoning Commission denies permit for proposed data center

The Tyler Planning and Zoning Commission recently voted 5-2 to deny a special use zoning permit for a proposed Bitcoin mining data center located on West Erwin Street. This decision followed a crowded meeting where numerous Tyler residents expressed strong opposition to the project, arguing it would negatively impact their community.

The commission's denial was based on findings that the proposal was inconsistent with the city’s "Tyler Tomorrow" comprehensive plan, incompatible with existing residential uses, and failed to adequately protect the health, safety, and welfare of surrounding residents. Concerns were specifically raised about continuous industrial noise from cooling equipment, the impact on water resources given Tyler's past issues with rising water bills and contaminated groundwater, and the strain on local power utilities.

Residents highlighted that the data center's 24/7 noise could degrade the quality of life, citing a police chief's explanation that the city's noise ordinance also considers the peaceful enjoyment of property. Public health concerns related to air pollution from data centers were also brought forward, referencing research by Harvard. The company behind the project, Vulcan Core, was noted for being recently formed in March 2026, with principals from New Hampshire and ties to a New York data project, raising skepticism among community members.

Lauren Barnes, a Tyler native and Harvard Kennedy School graduate living two miles from the proposed site, penned an opinion piece advocating for the City Council to uphold the denial if Vulcan Core appeals. She emphasized that Tyler deserves development that adds value, such as affordable housing and strengthened neighborhoods, rather than projects that primarily benefit outside investors while imposing risks and uncertainties on residents.