Hamilton County commission approves one-year moratorium on data centers in unincorporated areas

The Hamilton County Commission voted July 26 to impose a one-year moratorium on the construction of data centers in unincorporated parts of the county. The measure, introduced as Resolution 7-26-23, passed on roll call after extended discussion of legal risk, utility impacts and next steps for zoning changes.

Supporters said the pause would give county staff and the commission the time to draft zoning code changes that could make it difficult for data centers to be built legally. Mayor Womp told commissioners the moratorium was designed to "give time for us to put in place more permanent zoning code changes that, frankly, I think is the consensus of many of us to prevent data centers from being built in this county where we don't think they are appropriate." He added the one-year window was intended for the planning department to prepare recommendations.

County Attorney Varnell advised caution about extending a moratorium beyond the period necessary to achieve a clear purpose and warned that courts have struck down sweeping bans enacted without required processes. "Courts typically don't like sweeping moratoriums that limit the decisions of landowners," she said, recommending specificity and the least amount of time necessary to complete the study and zoning work.

Commissioners raised concerns about data centers' energy and water use and the potential effect on local rates and service. "They use a tremendous amount of electricity," Commissioner Highlander said, citing research and local examples of community impacts and urging study rather than an indefinite ban. Several commissioners said they preferred to pursue permanent zoning changes after the study period rather than seek a prolonged moratorium.

Members of the public urged either a longer moratorium or stronger permanent restrictions, and environmental and community groups offered technical assistance and suggested closer coordination with the City of Chattanooga. The commission agreed to revisit progress publicly at roughly the six-month mark and retained the option to extend the moratorium later if needed.

The resolution passed by roll call. The commission directed the county planning department to work with commissioners and report on progress toward recommended zoning amendments during the moratorium period.