Tyler planning commission denies permit for proposed data center

Tyler planning commission denies permit for proposed data center

News ClipKLTV.com·Tyler, Smith County, TX·7/7/2026

The City of Tyler's Planning and Zoning Commission voted to deny a special use permit for a proposed Bitcoin mining data center. This decision followed a recommendation from the city's director of planning and concerns raised by nearby residents regarding water usage and noise pollution. Developer Vulcan Core sought approval for the facility, which would be leased by operator Barrio.

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Gov: City of Tyler Planning and Zoning Commission, City of Tyler

The City of Tyler's Planning and Zoning Commission voted five to two on Tuesday to deny a special use permit request for a proposed Bitcoin mining data center on W. Erwin St. This decision aligns with a recommendation from Kyle Kingma, Director of Planning for the City of Tyler, who advised against approving the request.

The proposed facility, which would operate at 12,500 MW, was to be developed by Vulcan Core and leased by data center operator Barrio. The property is currently zoned for light industrial use, and data centers do not have a specific zoning category under Tyler's current regulations, a common issue in many Texas cities.

Local residents expressed significant concerns at a June 15 community meeting. Issues raised included potential water usage and noise pollution from the facility, despite assurances from Vulcan representative Mark Bunstev that there would be no negative effects on nearby homes. The commission's vote to deny the permit was cast by members Scott Williams, Christina Davis, Michael Carmichael, Philip Humber, and David Hudson, with James Wynne and Roy Martinez voting against the denial.