KNOXVILLE, Tenn. (WOKI / WVLT) – The City of Knoxville has approved an emergency ordinance placing a temporary halt on the permitting and construction of large data centers, giving city leaders a year to study their potential impacts and develop regulations.
The ordinance, passed by Knoxville City Council on Tuesday, establishes a one-year moratorium on large data centers within city limits. City officials said the pause is intended to provide planning and zoning staff time to create recommendations and safeguards before such facilities could be considered for development in Knoxville.
Under the resolution, a large data center is defined as a facility capable of using 10 megawatts of electricity or more and designed for activities including data processing and storage, web hosting and streaming services, cryptocurrency mining, or similar digital operations.
City leaders cited several concerns behind the temporary pause, including the significant size of some facilities, impacts on nearby neighborhoods, demands on power and water resources, greenhouse gas reduction goals, and the relatively small number of jobs often created by data center developments.
The ordinance notes that while data centers play a critical role in supporting the digital economy, they can also create challenges for surrounding communities, public utilities and environmental sustainability.
City officials emphasized that there are currently no proposals to build a data center in Knoxville.
The action follows a June request from Mayor Indya Kincannon, who asked Knoxville-Knox County Planning staff to research best practices and potential regulations governing data center development. In a letter to planning officials, Kincannon said residents, city staff and elected leaders have concerns about how large data centers could affect both neighborhoods and the broader community.
The moratorium places a temporary hold on city permits, building approvals, utility extensions, development agreements and zoning-related amendments connected to qualifying data center projects.
Knoxville joins a growing list of East Tennessee communities taking similar action. Knox County recently approved its own one-year moratorium on data centers, while Loudon, Anderson and Morgan counties have adopted pauses ranging from six months to two years. Blount County has instead enacted regulations governing where data centers and cryptocurrency mining operations can locate and how they must operate.
Planning and zoning staff are now tasked with developing recommendations for zoning code changes and other development standards for future consideration.
The Knoxville moratorium will remain in effect until July 7, 2027, or until new data center regulations are adopted by the city.
