JC moratorium on Bitcoin mines likely to allow development of stricter rules

Yahoo

22-05-2025

JOHNSON CITY, Tenn. (WJHL) — Johnson City commissioners may temporarily halt new businesses in heavy industrial (I-2) zones in order to buy time to craft stricter limits around Bitcoin mines and other data centers.
Jury finds Hitchcock brothers guilty of murdering father
Mayor John Hunter told News Channel 11 Wednesday a moratorium is likely in the wake of nearly 90 minutes of public comment opposing Bitcoin mines at a May 15 commission meeting. That vote would come at a June 5 meeting that would also likely include final passage of at least some initial zoning rule changes to address data centers.
'If this (zoning amendment) passes on third reading and we look at doing a moratorium, it gives us the opportunity to review our noise ordinance as well as some other concerns that residents brought about at the commission meeting, including vibration and environmental issues,' Hunter said.
He said the city hopes to engage experts on acoustics and other impacts related to data centers — massive conglomerations of computers that run complex calculations for cryptocurrency operations or artificial intelligence. The centers have drawn criticism for the noise that the fans used to cool the servers make, among other things.
Commissioners were holding the second of three readings on May 15 on a proposed change to the city's zoning code designed to limit data centers, including Bitcoin and other cryptocurrency mines, to I-2 zones. The current proposed limits weren't enough for many speakers from a south Johnson City neighborhood where BrightRidge had been considering hosting and providing electricity for what would be the city's first Bitcoin mine.
BrightRidge itself announced a moratorium on hosting data centers last week, but without any specifics about duration. The south Johnson City site could have replaced a mine in Limestone that drew intense public criticism for noise and has to vacate by March 2026 as part of a lawsuit settlement.
PREVIOUS: County commission OKs Bitcoin lawsuit settlement
A pause, which city attorney Tom Seeley told commissioners would have to apply to any new businesses within the I-2 zones where data centers would be allowed, could give the city time to craft even more limits on data centers.
'We can complete our process of updating not just the zoning text amendment, but also the noise ordinance to address those types of issues and concerns for the city,' Hunter said.
Sylvain Bruni, one of the residents who spoke out May 15 in what he called 'a tense and tough meeting,' said people from the neighborhood will be keeping a close eye on what actually transpires.
'I do think the neighbors really communicated what we wanted the commission to hear, and to some extent they've addressed and they've heard those concerns as shown by those commitments,' Bruni said.
He said those include the moratorium; further strengthening limitations in the zoning code beyond the current proposal; and studying potential impacts during the moratorium, including researching 'other types of impacts that we've brought to their attention.'
'We're going to continue tracking that they're delivering on those commitments,' Bruni said.
Commissioners seemed to agree on May 15 that more needs to be done.
'I am for the strongest possible wording that will keep data centers from wanting to come to Johnson City,' Commissioner Todd Fowler said after speakers finished.
But as Commissioner Joe Wise pointed out, the lack of any language in the city's zoning code about data centers means 'there is nothing about our code that's written today that prevents this from happening tomorrow.'
By law, local governments can only prevent illegal businesses from operating. Strip clubs, for instance, aren't illegal and can't be completely prohibited. A business that sold cocaine, on the other hand, couldn't legally operate.
Hunter said Wednesday that both traditional data centers and crypto mining centers are on the rise and that local governments have to prepare.
'I think it's imperative that we put these extra restrictions and regulations in place that the city has the ability to do,' he said.
Bruni said he still isn't convinced the city couldn't put even more restrictions in place, including a moratorium strictly related to Bitcoin mining. He said he'd like to get more information from the city attorney on why that can't be done.
Hunter said he thought the May 15 meeting, which longtime commissioner Jenny Brock said drew the most public comment she'd ever seen, was 'really great.
'It started out with some people that had strong concerns, and I think at the end of the day, both the city commission was heard as well as the citizens, and I think a lot of clarity was provided.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.