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.
Rutherford 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 Rutherford County.
Specific to Rutherford County only.
pending · Unincorporated areas subject to the Rutherford County Zoning OrdinanceWould, if adopted, impose a temporary moratorium on accepting and processing new land-use applications for covered data centers, including planned unit development applications, while County staff and the Planning Commission review zoning standards and potential impacts such as energy use, noise, and land-use compatibility (draft resolution and staff comments).Rutherford County Proposed One-Year Data Center Moratorium Resolution (2026)
What this means
If enacted, the one-year pause would prevent the County from accepting or processing applications for covered data centers, creating a major delay for new projects; it would apply across zoning districts, including planned developments (one-year moratorium on new applications). The draft covers facilities over 20,000 square feet whose main use is computing, but excludes incidental business equipment and certain communications facilities; it does not expressly stop existing centers from operating.
Timing
- Ends
- the 365th day following its passage
The moratorium applies to new land-use applications for covered data centers and may terminate earlier or be extended by the County Commission. The draft resolution's effective date is blank, so no calendar expiration date can be calculated. All other zoning-ordinance provisions remain unaffected.
People behind it
- Rutherford County Regional Planning Commission
Recommended that the Rutherford County Commission impose a one-year moratorium on new data center land-use applications.
- Rutherford County Board of Commissioners
Responsible for adopting the resolution and imposing the proposed one-year moratorium.
Restrictions & requirementsHide restrictions & requirements4
Imposes a temporary moratorium on accepting or processing any new land-use application for a covered data center in any Rutherford County zoning district, including planned unit development applications.
Applies to facilities consisting in aggregate of more than 20,000 square feet under roof whose principal use is operating computer systems, servers, data-storage systems, or related equipment for processing, storing, hosting, managing, or transmitting digital information.
Exempts computer, server, storage, or telecommunications equipment that is secondary and customarily incidental to another permitted principal use, as well as telecommunications switching facilities, central offices, network facilities, points of presence, broadband or fiber-optic infrastructure, and similar communications facilities.
The moratorium lasts for 365 days after passage, unless the County Commission terminates or extends it earlier.
Benefits & exceptionsHide benefits & exceptions5
The moratorium applies only to facilities containing, in the aggregate, more than 20,000 square feet under roof. Facilities at or below that threshold are outside the measure’s definition and are not subject to this moratorium.
Computer, server, storage, and telecommunications equipment that is secondary and customarily incidental to another permitted principal use is excluded from the definition, so that otherwise permitted use is not subject to the moratorium.
Telecommunications switching facilities, central offices, network facilities, points of presence, broadband or fiber-optic infrastructure, and similar communications facilities are excluded from the definition and may continue under otherwise applicable rules.
The moratorium lasts for one year, or 365 days after passage, and automatically terminates unless ended earlier or extended by the Commission.
The measure states that no other zoning-ordinance provisions are affected, preserving the existing regulatory framework for uses and facilities outside the moratorium.
Sources
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