Lawsuit filed on behalf of cryptocurrency company challenges Hawkins County data center ban

The Beacon Center of Tennessee, a nonprofit organization, has filed a federal lawsuit against Hawkins County, Tennessee, on behalf of ExoticRidge Crypto Company LLC. The lawsuit challenges a resolution passed by the Hawkins County Commission on September 22, 2025, which prohibits data centers and cryptocurrency mining operations throughout the county. The Commission justified the ban by citing concerns over the high electrical energy consumption, continuous noise, minimal economic benefits, and significant environmental and infrastructure burdens associated with such facilities. They also argued that data centers are incompatible with the county's rural character and pose a threat to residents' health, safety, and welfare. ExoticRidge Crypto Company, which had planned to build a Bitcoin mine in Hawkins County, asserts that the ban is "arbitrary and unreasonable," unconstitutionally singles out data centers, and prevents property owners from productive land use. The lawsuit highlights that Tennessee counties typically lack inherent powers to regulate private property and land use, being limited to zoning powers delegated by the General Assembly. It further alleges that Hawkins County, despite historically claiming not to operate under the County Powers Act, had in fact adopted it in 2012, a fact the company was unaware of. The legal challenge also details how Hawkins County Mayor Mark DeWitte allegedly used the County Powers Act to facilitate the ban shortly after ExoticRidge submitted permit applications and after Daugherty had engaged with local officials. The lawsuit claims ExoticRidge had already invested significant resources in preparing its facility and has since lost $120,000 per month in anticipated profits due to the ban. Citing violations of both the United States and Tennessee Constitutions, the lawsuit seeks to allow ExoticRidge to operate its facility and be awarded compensatory damages.