Blount County Planning Commission Recommends Amendments to the Proposed Zoning Ordinance for AI Data Centers and Crypto Mining Facilities

MARYVILLE, Tenn. — The Blount County Regional Planning Commission voted unanimously on Sept. 24 to recommend a modified zoning resolution regulating cryptocurrency mining and AI data center facilities to the full Blount County Commission. The proposed regulations aim to establish oversight and location controls over high-density computing center developments in response to growing community concerns over environmental, utility, and noise impacts.

2,000-Foot Setback Amendment Approved

A central highlight of the meeting was a major amendment to facility buffer distances introduced by Commissioner Nick Bright. Bright motioned to increase the minimum mandatory setback requirement from 1,000 feet to 2,000 feet from adjacent property lines and completely remove a clause that would have permitted the Board of Zoning Appeals (BZA) to reduce setbacks through special exception variances. Commissioners emphasized that severe noise from heavy cooling equipment and operational machinery makes a buffer mandatory to shield surrounding residential properties. Some Planning Board members suggested that a distance of even 5000 feet may not be enough to protect the community from noise aggravation.

Potential Legal Vulnerabilities of the 2,000-Foot Offset

Despite the commission’s approval, a 2,000-foot offset could face legal challenges as arbitrary. Mapping analysis shows that Blount County’s existing industrially zoned land is limited and concentrated primarily near the local landfill and airport. Applying a 2,000-foot buffer across these parcels eliminates nearly all eligible site space within county jurisdiction. Consequently, developers could argue in court that the 2,000-foot requirement functions as an unlawful prohibition—effectively “zoning out” facilities without a statutory ban.

Emergency Shutdowns and Utility Safeguards

The commission approved two additional key amendments aimed at protecting public welfare and local infrastructure. Under the amended emergency authority provision, local municipal and county officials retain the power to mandate temporary operational shutdowns if a facility’s activities threaten public health, destabilize utility infrastructure, or violate environmental safety thresholds.

To address utility strain, Planning Commissioner Josh Sullins expanded the limited electric-only utility impact requirements to all types of utilities including gas, water, and electric. Applicants must submit a binding letter of attestation from all serving utility providers confirming that the facility’s peak operational load can be accommodated without causing service degradation or requiring infrastructure upgrades subsidized by existing ratepayer classes.

Decibel Limits as a Noise Mitigation Tool

In addition to physical setbacks, Thomas Llyod, Director / Building Commissioner, highlighted that decibel performance standards serve as a crucial regulatory tool to control ambient sound. Other communities faced with noisy data centers have enforced and fined based on maximum decibel limits to control and reduce noise complaints due to cooling fans, HVAC infrastructure, transformers, and emergency power generators.

Unanimous Vote Advances Ordinance to County Commission

Following discussions clarifying that accessory server infrastructure occupying less than 5% of gross floor area remains exempt from data center restrictions, the planning commission voted unanimously to approve all three amendments and forward the full resolution to the Blount County Commission. If moved to the next step in the process by the County Commission they would have to advertise a formal public hearing with 15 days’ notice before conducting final deliberations and taking a legislative vote to amend the zoning ordinance.