In a 3-to-2 vote on Monday evening, the Loudon City Council approved a resolution enacting a 12-month pause on zoning for new data centers. The temporary ban—originally proposed for 18 months—includes an optional 12-month extension, following a recommendation made by the Loudon Regional Planning Commission in July.

The measure mirrors similar actions taken by municipalities across East Tennessee as communities look to establish clear regulations on how and where data centers are developed.

City officials cited several major concerns surrounding data centers, highlighting their “extraordinary” electricity usage alongside limited economic benefits. The resolution also addressed potential disruptions from noise pollution, noting documented complaints regarding resident health, property values, and overall quality of life.

While the 12-month moratorium is in effect, the Engineering and Planning Department will collaborate with an outside consultant to draft a comprehensive framework of rules and regulations for future data center development, which will be subject to a future council vote.

Certain exemptions apply to the resolution, specifically excluding state-run data centers and those operated by utility providers.