County moves on yearlong AI data center moratorium

County moves on yearlong AI data center moratorium

News ClipTullahoma News·Coffee County, TN·5/29/2026

The Coffee County Planning Commission unanimously approved a 12-month moratorium on AI data centers to allow time to amend county zoning resolutions. The county intends to create restrictions to make the county unattractive for data center development, potentially limiting power and water utility usage. The moratorium will now go before the County Commission for a final vote.

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Gov: Coffee County Planning Commission, Coffee County Commission, County Mayor Dennis Hunt, Planning Chairman Steve Cunningham, Planning Commissioner Rodney Duncan, Planning Commissioner Randy Harrell, Department of Air Force, President Trump, Duck River Electric, TVA, Knox County

The Coffee County Planning Commission unanimously approved a 12-month moratorium on Artificial Intelligence (AI) data centers during its May 26 meeting. This decision was made to provide the board with sufficient time to propose and develop amendments to the existing county zoning resolutions, specifically aimed at addressing and regulating data center development within the county.

County Mayor Dennis Hunt had initially suggested a 180-day moratorium and presented a nine-page zoning resolution drafted by the county’s planning consultant. Both Mayor Hunt and Planning Chairman Steve Cunningham emphasized the county's ability, due to its county-wide zoning, to apply restrictions and potentially make the area less appealing for data center development, despite being unable to outright prohibit legal activities. Commissioner Rodney Duncan suggested emulating Knox County's approach, which prohibits data centers from utilizing local power and water utilities.

Concerns were raised by Mayor Hunt regarding the interpretation of data centers as a permitted use in A-1 agricultural districts. The proposed zoning resolution seeks to confine data centers to the M-2 Special Impact Industrial District, an area designated for uses like firework plants and refineries. The moratorium's approval by the Planning Commission sets the stage for a vote by the County Commission on June 9. The Department of Air Force is also moving forward with plans to host AI data centers on underutilized land at select Air Force bases, including Arnold Air Force Base in Coffee County, in response to a 2025 executive order from President Trump. This local action comes as a neighboring Warren County recently announced plans to host an AI Center.