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Council schedules Sept. 3 public hearing on proposed moratorium for data centers and crypto mining

Hendersonville City Council · July 23, 2026
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Summary

City legal staff recommended researching impacts and drafting findings before enacting a moratorium on data centers. Council voted to schedule a public hearing Sept. 3 to consider an ordinance imposing a moratorium not to exceed 12 months on development approvals for data centers and cryptocurrency mining facilities.

City counsel/staff briefed council on the legal and practical issues of imposing a moratorium on data centers and cryptocurrency mining facilities. Counsel outlined the range of definitions (from small collocated servers to hyperscale facilities of 100+ megawatts), legal requirements for moratoria (findings of necessity, reasonable duration, alternatives considered, required public notice), and the exemptions and permit‑choice rules that would apply.

Counsel recommended collecting data to support specific findings and drafting an action plan with time frames during the moratorium. Councilmember (mover) proposed scheduling a public hearing to consider an ordinance imposing a moratorium not to exceed 12 months with the hearing to be held at 5:45 p.m. on September 3 in the large first‑floor meeting room at City Operations. The motion carried by voice vote. Counsel noted pending state legislation (Senate Bill 730) that would require site assessments and allow local requirements for water‑use standards and certain ownership restrictions; staff said these state changes may inform local ordinance drafting.

Council directed staff to gather comparative data, identify alternatives and draft ordinance language and an action plan for the public hearing. "You have to outline the problems or conditions necessitating the moratorium," counsel said, and emphasized that the council must set a termination date and an action schedule if it adopts a moratorium.