Facing strong public opposition over noise, water usage, and environmental impacts, the Crossville City Council took a key step today toward restricting new data centers by approving the second reading of an ordinance establishing a 24-month moratorium.

The proposed moratorium (Title 14, Chapter 12) would temporarily halt new data center developments while the city and Cumberland County coordinate on regulations covering noise standards, water conservation, and strain on electrical infrastructure. Officials said the pause is designed to prevent costly lawsuits that could result from an immediate outright ban and to allow joint planning between city and county commissions. A third and final reading is expected in August.

During public comment, several residents voiced deep concerns. John Murray highlighted problems in other states, including a rare drug-resistant bacterium traced to data center wastewater in Cheyenne, Wyoming, lawsuits over noise from natural gas turbines near an Elon Musk-backed facility in Mississippi, and water rights disputes in California. He also referenced issues with existing Bitcoin mining operations in Crossville, which he said produce excessive noise affecting nearby residents.

Jacob McGonagall, an IT professional and MSP owner, questioned the necessity of large-scale data centers, arguing they primarily serve massive data collection rather than essential needs. He contrasted them with the area’s tourism economy and upcoming projects like Flat Rock, warning that hyperscale facilities — such as xAI’s 1,500-megawatt project in Memphis — could overwhelm local resources.

Council members acknowledged the feedback and past approvals of temporary Bitcoin facilities. Mayor R.J. Crawford and others noted the lack of comprehensive zoning makes regulation challenging, but emphasized they have “heard” residents and do not support massive hyperscale data centers. The moratorium aligns with similar county efforts to address these issues collectively.

The discussion also touched on broader energy solutions, such as emerging small nuclear reactors, and the need to avoid over-regulating while protecting community interests. Officials plan to engage state leaders on long-term data center policy.

The moratorium does not affect already-approved operations but signals a cautious approach to future large-scale tech infrastructure projects in the area.