Kingsport adopts ordinance regulating data centers and cryptocurrency mining

The Board of Mayor and Aldermen of the City of Kingsport unanimously approved an ordinance amending chapter 114 of the city code to regulate data centers and cryptocurrency mining land uses.

The ordinance, adopted on second and final reading, was presented by city staff as a proactive framework intended to balance potential industrial uses and residential compatibility. Planning staff and the planning commission recommended the change; the planning commission’s endorsement was noted as unanimous in prior review by staff.

An alderman who participated in the discussion described the measure as "a very proactive approach" and emphasized that the ordinance creates a pathway for development controls rather than imposing a ban. Another alderman said the measure was a "measured approach" and noted that the city currently has no known data‑mining businesses seeking to locate in Kingsport.

City officials said the new rules were modeled in part on approaches used by neighboring municipalities and aim to reduce potential land‑use conflicts by specifying where and how data centers and related activities can locate. The city attorney read the ordinance aloud before members moved for and recorded a roll‑call vote. The recorder reported a 7–0 vote in favor, and Mayor Paul W. Montgomery declared the ordinance adopted.

The ordinance will take effect on the date specified in the ordinance language. Council members said they expect to revisit the rules as technology and market conditions evolve.

What happens next: the ordinance is now part of Kingsport’s zoning code; staff and the planning department will implement the changes and monitor any future requests for data‑center or cryptocurrency‑related permits.