Ringgold County board unanimously adopts moratorium on new data centers

The Ringgold County Board of Supervisors unanimously approved a moratorium on new data centers on July 6 after a public hearing and motions to waive the third reading and adopt the ordinance.

The action came after the board opened a public hearing at 11:00 a.m. to consider temporary restrictions while staff studies rules and parameters for data-center projects. Supervisor Steve Knapp asked whether the board, after the study, would have the authority to simply deny a proposed data center; Knapp said that “likely will not be the case due to potential legal issues,” but the board can set application parameters so a developer may elect to build elsewhere.

Justin Murphy of REC testified in the hearing about a contract between REC and Aurum Capital Ventures Inc. for up to four retrofitted shipping containers to be used as a data-mining facility on REC property in Union County. Murphy said the facility “uses a mineral oil–based cooling system, similar to canola oil, rather than water,” and that the operation “does not create significant noise and has not presented major concerns regarding power demand.” He added that REC would bear costs to construct necessary electrical infrastructure and that, in the event of a power outage, the data center would not be treated as a priority customer for restoration.

Murphy also said CIPCO is conducting a capacity assessment and that, as a result, no additional data-center projects are being considered at this time. He argued that adding large commercial or industrial customers can spread system costs across a larger customer base and help REC maintain stable rates while investing in infrastructure.

After public testimony, the board voted to waive the third public hearing and final reading (Resolution RC26-105) and to approve the proposed moratorium ordinance (Resolution RC26-106). Both resolutions passed unanimously and were attested by Auditor Amanda Waske. The board said staff will begin drafting a formal ordinance and provide periodic updates to the public during the approximately 12-month development period.

The board’s action is a temporary, local land-use pause; the moratorium sets time for the county to study regulatory options and does not itself impose permanent development standards. The ordinance was approved with unanimous votes; no motions to amend or appeals were recorded. The board also tabled approval of claims during the same session.

The board plans to report periodic updates to the public while staff prepares the formal ordinance.