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Johnson City narrows where data centers can locate, orders acoustic study after heated opposition to crypto mining

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Summary

The city commission approved a zoning text amendment that defines "data centers," confines them to the I-2 Heavy Industrial district and directed staff to seek an acoustic study after extended public comment opposing cryptocurrency mining near neighborhoods.

Johnson City commissioners on May 15 advanced a zoning text amendment to define “data centers” and allow that use only in the city’s I‑2 Heavy Industrial district, and directed staff to hire an acoustic engineering firm to study noise and vibration issues tied to those operations.

The measure, presented as ordinance 49‑14‑25, drew several hours of public comment from residents who said proposed cryptocurrency mining facilities would harm health, wildlife, property values and noise-sensitive people and animals. Commissioners voted to approve the text amendment on its second reading and signaled they will pursue additional protections, including a planned request for qualifications for acoustic consultants and consideration of a temporary moratorium on new I‑2 development while the study is completed.

The amendment adds definitions for “data center,” “digital data operations,” and “cryptocurrency mining,” and specifies performance standards for any such use in I‑2: operations must be inside enclosed buildings; exterior equipment must be fully screened; minimum front setbacks of 60 feet; a minimum 200‑foot setback from residential zoning; and a Type 4 landscape buffer (35 feet with a wall or fence and plantings) where residential property abuts I‑2. The draft also ties the use to compliance with the city’s noise ordinance and gives staff authority to require supplemental submissions addressing sound impacts.

Residents urged stronger protections than those in the draft. Public commenters repeatedly proposed far larger buffers, mandatory low decibel caps, real‑time noise monitors with automatic shutdowns, escrowed decommissioning funds and mandatory environmental and health impact studies. Comments included measured readings and descriptions of existing operations in other communities.

“I object to it because of what is going to expose our people,” said Tom Cook, a Garland Acres resident who spoke during public comment. Robin Phillips told commissioners, “Bitcoin mining will affect our children, our grandchildren, veterans, adults and children with special needs, wildlife, pets, honeybees, and destroyer property values.” Security and economic concerns were also raised: Dave Adams, an engineer who said he has direct experience with mining operations, told the commission, “If we’re serious about protecting neighborhoods, this falls way short.”

Several commenters urged the commission to adopt larger setbacks — citing examples they said other jurisdictions have set at 1,000 to 3,400 feet — and to require stricter noise thresholds than Johnson City’s current ordinance. City staff told the commission they will release an RFQ for an acoustic engineering study “in about the next two weeks” and expect to return with recommendations later this summer, with an initial staff target of August or September for first readings on related noise ordinance amendments.

Commission discussion focused on limiting where data centers may go, strengthening enforceable noise controls and buying time to complete technical study. Several commissioners expressed support for stronger standards. Commissioner Fowler (a physician) said he supports “the strongest possible wording that will keep data centers from wanting to come to Johnson City.” The city attorney confirmed the commission could adopt a time‑limited moratorium that would temporarily pause new development in I‑2 while the city finishes its technical work; staff and legal counsel said such a moratorium would need to be citywide for I‑2 properties and time‑bounded (suggested six to twelve months) to be legally defensible.

The second reading of ordinance 49‑14‑25 passed on the night’s vote; commissioners said they will pursue concurrent updates to the noise ordinance and consider a moratorium resolution at the next meeting to preserve time for technical analysis and drafting enforceable standards that address low‑frequency noise, vibration and air/emissions questions.

The commission and staff stressed the text amendment does not rezone property or authorize any specific project; it creates a defined use and adds standards so any future application can be reviewed against explicit criteria. Staff recommended approval; the commission voted to advance the ordinance and directed staff to proceed with the acoustic RFQ and with drafting a moratorium resolution for the next meeting.

What comes next: staff will release the acoustic RFQ, return to the commission with study selection and proposed noise‑ordinance language, and the commission will consider a moratorium resolution at its next meeting to pause new I‑2 permits while the technical study is completed.