Local Leaders Grapple with Data Center Policies

Concerns over noise, environment, and power grid impacts lead to moratoriums and calls for more study

Published on Feb. 4, 2026

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Local leaders in Northeast Tennessee are taking a cautious approach to regulating Bitcoin mines and other data centers, with some implementing moratoriums to further study the potential impacts on their communities. Citizen groups have raised concerns about noise pollution, environmental damage, and the strain on the power grid, while companies argue the facilities can provide jobs and help keep utility rates low. The region's first Bitcoin mine, opened in 2021, faced noise complaints and a lawsuit, leading to an agreement to cease operations by 2026. As local governments work to update zoning codes, officials say more communication is needed to balance community concerns with potential benefits.

Why it matters

The debate over data centers highlights the tension between economic development and community impact. Local leaders must weigh the promised benefits of jobs and utility rate stabilization against potential drawbacks like noise, environmental damage, and strain on the power grid. How they navigate this issue will set the tone for future data center projects in the region.

The details

Several Northeast Tennessee communities have grappled with proposals for Bitcoin mines and other data centers in recent years. The first such facility, opened in Washington County's New Salem Community in 2021, faced noise complaints that led to a lawsuit. That operation will cease by March 2026 under a settlement agreement. Other potential projects in Johnson City, Mountain City, and Hawkins County have also drawn skepticism from citizen groups concerned about the facilities' impacts. In response, some local governments have implemented moratoriums to further study data center regulations, while the regional utility BrightRidge has maintained its own moratorium on new facilities. Officials say more communication is needed to address community concerns and clarify potential benefits like stabilized utility rates.

  • The Washington County Bitcoin mine opened in 2021.
  • In October 2023, the Washington County Commission settled a lawsuit against the mine, which will cease operations by March 28, 2026.
  • In May 2025, BrightRidge implemented a moratorium on new data centers in its service area.
  • This week, the Washington County Planning Commission recommended a one-year moratorium on data centers.

The players

Ken Huffine

Washington County Commissioner who serves on the county's planning commission and the BrightRidge Board of Directors.

Kevin Hendricks

Washington County resident and Bitcoin mining opponent who presented concerns to a Tennessee Senate committee.

Jeff Yarbro

Democratic Tennessee state senator who questioned the implicit bargain between communities and industries.

Scott Brooks

TVA spokesman who said the agency is reconsidering policies and rates around data centers.

Cleanspark

Company that owns the Limestone Bitcoin mine and was considering sites in Johnson City and Mountain City last year.

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What they’re saying

“It's still a relatively new technology, and with that lack of knowledge, the fear of the unknown does creep in. So yeah, I think there's legitimate concerns there.”

— Ken Huffine, Washington County Commissioner (wjhl.com)

“They come in because of cheap power, lax regulations. They're not employing a lot of people. The profit is mostly going out of state. So it's really almost like a locust that comes in and attacks your corn crop. The locusts come in, consume all your corn and move out.”

— Kevin Hendricks, Washington County resident and Bitcoin mining opponent (wjhl.com)

“Historically there's been sort of an implicit bargain when we recruit an industry. That's the piece that's a little bit more broken here.”

— Jeff Yarbro, Democratic Tennessee state senator (wjhl.com)

What’s next

The Washington County Planning Commission's recommended one-year moratorium on data centers will be considered by the county commission. Local governments in the region continue to work on updating zoning codes to address data center regulations.

The takeaway

The debate over data centers in Northeast Tennessee highlights the need for clear communication between local leaders, companies, and residents to address community concerns and potential benefits. As officials work to update policies, finding the right balance between economic development and community impact will be crucial.