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The Data Center Divide

Blount County

Slightly Pro-Data Center Policies

Tennessee rules can limit how much utilities and municipalities absorb data-center-specific infrastructure costs, while allowing certain cost allocations and independent power. Qualifying large projects that meet investment and job requirements can receive equipment tax breaks and a reduced electricity tax.

Rating and summary from Tennessee statewide as there are no scored current or future laws outside temporary restrictions for Blount County.

Specific to Blount County only.

pending · Unincorporated areas
Would impose a temporary 365-day moratorium in unincorporated Blount County on new or materially expanded advanced-computing, artificial-intelligence data-center, cryptocurrency-mining, and blockchain-computing facilities by pausing substantive consideration and issuance of related development permits and authorizations (Resolution 26-10-014).Blount County Resolution 26-10-014 (2026)

What this means

If enacted, this would pause approval of new data centers, conversions, and major expansions in unincorporated Blount County for up to 365 days, with one possible extension of up to 12 months. Existing lawful facilities could continue operating, but the pause would make new projects and expansions substantially harder by delaying permits while the county studies future rules.

Timing

Ends
365 consecutive days following its lawful effective date, unless terminated earlier or extended once for up to 12 additional calendar months

The moratorium terminates earlier if permanent zoning amendments addressing covered developments become effective and the Commission formally releases the moratorium, or if the Commission separately terminates it. Any extension requires affirmative legislative action before the initial period expires, with required findings and applicable review, notice, and public-hearing procedures.

People behind it

  • Named sponsor of Resolution No. 26-10-014.

  • Named sponsor of Resolution No. 26-10-014.

  • Named sponsor of Resolution No. 26-10-014.

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  • Named sponsor of Resolution No. 26-10-014.

  • Legislative body responsible for considering, adopting, extending, terminating, and considering permanent regulations related to the measure.

  • Responsible for coordinating the comprehensive planning and development impact study and preparing required reports and work plans.

  • Responsible for working with the Planning Department to coordinate the comprehensive planning and development impact study.

  • Responsible for transmitting the resolution to municipal governments and planning officials and coordinating its publication and distribution.

Restrictions & requirementsHide restrictions & requirements4

  • A temporary moratorium lasting 365 consecutive days prohibits the substantive consideration, approval, and issuance of new county zoning, building, grading, construction, site-plan, and other development permits or authorizations needed to establish or materially expand covered advanced computing or data-center facilities in unincorporated Blount County. It also applies to conversions of existing structures to covered uses and material expansions of existing facilities. (temporary moratorium)

  • The moratorium may be extended once for up to 12 additional calendar months, but only through separate affirmative legislative action before the initial period expires, with written findings, applicable review, public-hearing, and notice requirements. (one%20extension%20of%20the%20moratorium)

  • Expiration or termination of the moratorium does not automatically approve any pending data-center development application. (shall%20not%20constitute%20automatic%20approval)

  • The moratorium does not invalidate lawfully issued permits, terminate lawful existing uses, or impair legally established vested property rights; applications subject to statutory decision deadlines must still be processed, and routine maintenance, ordinary equipment replacement, and emergency repairs to lawful existing facilities remain allowed if they do not constitute a new covered development or material expansion. (existing approvals and vested property rights)

Benefits & exceptionsHide benefits & exceptions7

  • The County may continue to receive, date-stamp, and administratively examine applications and supporting materials during the moratorium, including materials needed to establish a claimed vested right. Applications may continue to be received and examined

  • The moratorium does not retroactively invalidate lawfully issued permits, terminate lawful existing uses, or impair vested property rights established under applicable law. Nothing in this Resolution shall retroactively invalidate lawfully issued permits

  • The County must recognize statutory protections for qualifying development-plan submissions, building-permit applications, issued permits, and other legally protected development interests. The County shall recognize statutory protections arising from qualifying development-plan submissions

  • Applications subject to statutory decision deadlines must still be processed and acted upon as required by law; the resolution does not independently suspend those deadlines. Applications subject to statutory decision deadlines shall be processed and acted upon

  • Any applicable statutory vesting period is tolled during the moratorium, preserving the time available for protected development interests. Any applicable statutory vesting period shall be tolled during the moratorium

  • Lawful existing facilities may undergo routine maintenance, ordinary equipment replacement, and emergency repairs, provided those activities do not create a new covered development or materially expand the facility beyond legally protected rights. Nothing herein shall prohibit routine maintenance, ordinary equipment replacement, or emergency repairs

  • The measure establishes a temporary restriction and expressly does not itself enact the proposed permanent zoning classifications or performance standards for advanced computing and data centers. Such incorporation shall be limited to identifying developments subject to the temporary moratorium

Sources

Specific to Blount County only.

pending · Unincorporated territory
Expresses Blount County’s intent to heavily regulate AI data centers and cryptocurrency-mining facilities under the county zoning ordinance and requests that the Planning Commission prepare amendments.Blount County Resolution 26-06-022 (2026)

What this means

If the suggested rules were adopted, data centers would be limited to industrial zones and require special approval, with 5,000-foot separation requirements from homes and other sensitive locations. Those limits, along with a 60-decibel sound cap, would make finding a suitable site and operating a center substantially harder, though they would not ban centers outright.

People behind it

  • Identified as a sponsor of the resolution.

  • Identified as a sponsor of the resolution.

  • Adopted and issued the resolution.

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  • Requested to prepare proposed zoning-ordinance amendments and consider the resolution.

Restrictions & requirementsHide restrictions & requirements5

  • Data centers and cryptocurrency-mining facilities would be allowed only in the Industrial zoning district.

  • These facilities would require approval as a special exception from the Board of Zoning Appeals.

  • These facilities could not be adjacent to or within 5,000 feet of a Suburbanizing, R-1, R-2, or RAC zoning district.

  • These facilities could not be adjacent to or within 5,000 feet of any residential dwelling, school, or church.

  • Sound from the facility, measured at the property lines, could not exceed 60 decibels.

Sources

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