Commission recommends six‑month study 'moratorium' on data‑center approvals to city council

The Loudon City Planning Commission voted to recommend that the city council consider a temporary six‑month resolution pausing new approvals for data centers and related data‑mining and AI operations while staff studies zoning and potential regulatory changes.

Staff introduced the proposed memorandum as a proactive step to allow time for review and drafting of text amendments; the memo would mirror actions taken in neighboring jurisdictions and the county. Staff said the pause would run for six months from the council’s action, with an option written into the resolution for an additional six‑month extension if needed. The measure would be a council resolution rather than an ordinance, which staff said allows for amendment or extension as necessary.

Commissioners said they wanted time to examine potential impacts and regulatory approaches. One commissioner characterized the pause as "an opportunity for us to study the new development tech that's coming," adding that the county had adopted a similar six‑month measure. Staff said a consultant experienced with other communities will help present options for how Loudon might regulate data‑center uses and related operations.

The commission moved and seconded a recommendation that the city council review the proposed memorandum and consider placing a six‑month study pause on new data‑center approvals; members voted in favor. If council acts, staff will undertake a study and prepare text amendments for future council consideration.