The Data Center Divide
A policy snapshot ahead of the 2026 midterms. Mapping data center incentives, restrictions, and bans through legislation, regulations, and executive actions across all 50 states and 1,462 local jurisdictions.
Johnson 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 Johnson County.
Specific to Johnson County only.
failed · Unincorporated areasProposed by County Mayor Larry Potter on August 21, 2025, the resolution would have opted Johnson County into Tennessee’s County Powers Act, allowing limited restrictions on future cryptocurrency mines, data centers, adult-entertainment stores, and junkyards in a county without zoning, but the County Commission rejected it in a divided vote.Johnson County County Powers Act opt-in resolution (2025) — introduced by County Mayor Larry Potter; rejected by the Johnson County Commission
What this means
If adopted, the resolution would give Johnson County new power to regulate or limit where data centers could be built in unincorporated areas, and future rules would need a two-thirds vote. It would not itself ban data centers, but it could create meaningful barriers to future projects (authority to regulate business locations).
People behind it
- Larry Potter
Johnson County mayor who introduced the resolution to adopt Tennessee’s County Powers Act.
Restrictions & requirementsHide restrictions & requirements5
The County Powers Act would authorize the county to define, prohibit, abate, suppress, prevent, and regulate businesses and property uses—including data centers—that are considered detrimental or potentially detrimental to residents’ health, safety, comfort, convenience, or welfare.
The county could prescribe limits on where and how businesses or practices considered nuisances or detrimental to the public welfare may be established, conducted, or maintained.
The authority would apply only in the county’s unincorporated areas, not within incorporated municipalities.
The county would have to adopt any data-center-related regulations under this authority by a two-thirds majority of the County Commission.
The authority would remain subject to statutory exemptions, existing rules on variances and nonconforming uses, and the Tennessee and U.S. Constitutions.
Benefits & exceptionsHide benefits & exceptions1
Existing data centers or other established uses may receive the same variance and nonconforming-use protections that apply to zoning and land-use controls, limiting how the county can enforce regulations against them. This applies only as provided by applicable Tennessee law and court decisions, and the county’s authority remains subject to the Tennessee and U.S. Constitutions. Section 3
Sources
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