Crossville City Council approved the second reading of an ordinance Tuesday to establish a 24-month moratorium on the development of new data centers.
Mayor R.J. Crawford said the temporary halt serves as a protective measure while the Planning Commission works with Cumberland County to develop unified standards for the facilities. Crawford said the city chose a moratorium over a permanent ban to avoid potential legal liability and multi-million dollar lawsuits from developers.
“I still think it’s important that we address that and we and we put the guardrails in place because it may not be an issue now, but if it continues, ” Crawford said. “I don’t think anyone here wants a massive data center, hyperscale as they say it, so I think we’re all on the same page.”
Crawford said the city is currently evaluating noise standards and water conservation requirements to ensure new developments do not over-tax the electrical grid. The mayor said the city lacks traditional zoning, which creates a challenge in balancing private property rights with the need for community regulation.
“With not having proper zoning here, there’s always so many things that we can do to restrict,” the Mayor said. “So, it’s a balance between private property, you having private property and no overregulation and other things like that.”
Diana Health Director of IT Jacob McGonigle said modern artificial intelligence data centers require significantly more power than traditional facilities, with some new projects drawing up to 1,500 megawatts. McGonigle said the constant operation of these centers creates a persistent noise that can be heard from nearby shopping center parking lots.
“That thing runs 24 hours a day, 7 days a week, and it’s not going to turn off,” McGonigle said. “And I don’t think that and in my professional career and in my opinion, I don’t think that these investments are long-term solutions.”
Fellow citizen John Murray said other states have faced environmental issues and lawsuits related to data center water consumption and wastewater discharge. Murray said a permanent ban is necessary to protect the farmland of Cumberland County for future generations.
“There is not a single human being who needs AI to survive,” Murray said. “However, every living creature on Earth needs clean air and fresh water.”
The ordinance will move to a third and final reading during the August meeting of the Crossville City Council.
In other business, the council approved amending the fiscal year budget for end of year adjustments.
