Planning commission recommends one-year moratorium on AI data centers and crypto mining

The Blount County Planning Commission on an advisory vote recommended a one-year moratorium on AI data centers, cryptocurrency mining and blockchain computing centers to give staff time to draft and legal to review proposed zoning amendments.

Staff member Thomas Lloyd, who led the presentation, said the county commission’s resolution asked the planning commission to prepare amendments and suggested federal definitions as a starting point. "Data center, according to the federal government, the term data center is any facility that primarily contains electronic equipment used to process, store, and transmit digital information," Lloyd said while reading the example definition provided in packet materials. He told the commission preliminary GIS work identified six industrial zones in county jurisdiction and warned a 5,000-foot buffer as drafted would effectively prohibit the use in much of the county.

Commissioner Nick Wright moved the recommendation that the planning commission request a moratorium while staff develops draft ordinance language; Commissioner Hannah seconded. Wright said, "I'd like to make a motion that we, have a moratorium on AI data centers and cryptocurrency mining until staff is able to provide us with a resolution." Several commissioners pressed staff and legal on how broadly the language should be written and whether the planning commission or the county commission must enact any formal moratorium.

Commissioner Wells cautioned against overly broad wording that could ensnare ordinary data centers: "All data centers are not alike. AI data centers are these what's being targeted and knows what the the massive nature of them," he said, urging precise definitions and legal review. Commissioners also discussed protecting sensitive local resources such as cemeteries and adding drought-related utility provisions. After discussion, the commission agreed to a one-year recommendation and staff will draft specific language for legal review and for the county commission’s consideration.

The planning commission recorded that the "Recommendation passes," and staff said it will return with a draft next month for review and any suggested changes.