New Zoning Regulations Open Doors for Cryptocurrency Mining and Data Centers in Tennessee Municipality
A newly approved ordinance modifies municipal zoning regulations, establishing specific requirements for cryptocurrency mining operations including location restrictions and noise level limitations.
Kingsport, Tennessee's Board of Mayor and Aldermen has given its approval to modifications in municipal zoning regulations that may facilitate the establishment of cryptocurrency mining operations and data centers within city limits.
During a meeting held on Tuesday, board members unanimously voted in favor of the ordinance during its first reading, which proposes amendments to land use zoning pertaining to data center facilities and sites dedicated to cryptocurrency mining, as reported by local news sources.
The newly proposed ordinance establishes specific parameters regarding the permissible locations for such facilities throughout the municipality. The board's approval came after receiving a recommendation from Kingsport's planning division issued in December, though the amendment still requires a second round of voting before it becomes officially enacted.
"The City's industrial district zoning code text was created without the anticipation of mass digitization. Staff expects to see new digital data-based industries looking for locations to develop. This text amendment allows for the City to appropriately locate and permit these uses."
Kingsport planning commission's report to the board
Under the terms outlined in the amendment, cryptocurrency mining businesses would receive authorization to conduct operations within Kingsport on the condition that they function within a "completely enclosed building" situated no closer than 500 feet (152 meters) from any residential structure or residential zoning district.
The drafted proposal specifies that cryptocurrency mining facilities would require approval contingent upon a sound study evaluation, establishing a ceiling of 60 dBA (A-weighted decibel) measured from the property boundary line. Citizens in various parts of the US, such as Hood County in Texas, have pursued legal action regarding excessive noise pollution generated by cryptocurrency mining operations.
Having a population estimated at approximately 57,000 residents, Kingsport ranks among Tennessee's top 20 most populous cities, rendering crypto-focused legislation particularly meaningful for a state already regarded by numerous companies as welcoming territory for mining enterprises. CleanSpark finalized an agreement in 2024 for the acquisition of seven mining facilities in the Knoxville area.
Tennessee lawmaker moves for state to adopt Bitcoin reserve
On Wednesday, Jody Barrett, a member of the Tennessee House of Representatives, put forward the Tennessee Strategic Bitcoin Reserve Act. The legislation being proposed would modify the state's legal code to grant authorization to the treasurer for investing as much as 10% of Tennessee's general fund resources in Bitcoin (BTC).
At the time of publication, it remains uncertain whether the bill will garner sufficient political backing to successfully navigate Tennessee's general assembly. Should the legislation be enacted into law, Barrett has proposed an effective date of July 1.