Nashville Green-Lights Data Center Regulations, Permit Moratorium

Nashville Green-Lights Data Center Regulations, Permit Moratorium

Nashville Green-Lights Data Center Regulations, Permit Moratorium

Eminent domain legislation continues to advance.

Image Credit: Martin B. Cherry / Nashville Banner

***Note from The Tennessee Conservative – this article posted here for informational purposes only.

This story was originally published by the Nashville Banner. Sign up for their newsletter.

by Stephen Elliott [The Nashville BannerCreative Commons] –

Nashville’s Metro Council on Tuesday voted to establish new regulations for data center development and implement a moratorium on data center permits until Dec. 1. The body also advanced Mayor Freddie O’Connell’s legislation aimed at using eminent domain to purchase a property next to the Nashville Zoo where DC Blox is working to build a data center.

The legislative push follows an explosion of public interest in and opposition to data centers both around the country and in Nashville. Fisk University announced plans to develop an on-campus data facility earlier this year, a move that has elicited some pushback from alumni and neighbors. But the news in May that Atlanta company DC Blox planned to build a data center next to the Nashville Zoo kicked the conversation into overdrive. 

Multiple hourslong public hearings and community meetings followed, with the result the three bills that passed on Tuesday. 

Two linked bills (BL2026-1391 and BL2026-1392), introduced by lead sponsor Councilmember Rollin Horton, establish zoning regulations for data centers, including distance requirements from sensitive locations like schools, environmental restrictions and a ban on the largest data centers. They passed third reading unanimously. 

The third bill (BL2026-1448) institutes a moratorium on new data center permits through Dec. 1. Initially, the moratorium brought by Councilmember Courtney Johnston, who represents part of the area around the zoo, would have expired upon passage of the zoning regulations. But Johnston added an amendment that allowed the moratorium to extend through Dec. 1, whether the regulations passed Tuesday or not. Johnston said the extension would allow the council to consider additional data center legislation inspired by an ongoing, mayor-requested review by Metro departments. The moratorium passed without significant debate. 

A supermajority of councilmembers signed on to cosponsor the zoning bill, and there was little debate on the bill other than consideration of a series of amendments to the legislation (see proposed amendments listed as attachments here). 

The council ultimately voted to add nine amendments to the bill (Amendment 1, Amendment 4, Amendment 5, Amendment 6, Amendment 10, Amendment 11, Amendment 12, Amendment 13 and Amendment 15). The approved amendments clarify language, require an emergency response and power resiliency plan, establish new notice requirements, require power and water usage reporting, require the public disclosure of annual compliance reports and place restrictions on on-site power generation and noise. 

Some proposed amendments would have resulted in the bill being re-referred to the Planning Commission, a process that would have delayed passage for weeks. The body rejected Amendment 7, Amendment 8, Amendment 9 and Amendment 14 because they would have necessitated re-referral. They would have required regular third-party compliance reporting, more than doubled the distance requirements for mid-sized data centers, required the use of natural gas for generators when available, and limited generator use to 72 hours. 

“Passing this legislation is just the beginning of necessary restrictions,” resident Emily Otnes said.  

Councilmember Mike Cortese did not move his Amendment 2 and Amendment 3 but said he would work on bringing them as their own legislation later. One would require decommissioning plans for data centers and the others would trigger another Metro review if developers change their plans. 

The body also advanced O’Connell’s eminent domain legislation. (The mayor supported the three other bills that passed on Tuesday.) That bill passed its second of three readings on a 27-3 vote with five abstentions and should be up for a final vote at the Aug. 4 meeting. The legislation move was deemed necessary because DC Blox applied for permits prior to passage of the zoning bill, meaning it is likely too late for the regulations to apply to that project. State law requires that developments be considered under the regulations in place at the time they start the permitting process. The company closed on the property last week.

That legislation could face continued debate. At a Monday committee meeting, Metro Councilmember Quin Evans Segall questioned whether it was a good use of money for the city. 

O’Connell and administration officials have said the city has been searching for office space in the region, especially as it is being pushed out of another office complex in Southeast Nashville, and that the property in question could accommodate various departments. Funding for the purchase, if it comes to pass, has already been allocated to different departments as part of a capital spending plan, the officials said. Evans Segall requested the legislation be re-referred to the Budget and Finance Committee as she had remaining questions about the financing. 

The city would have to pay fair market value for the forced purchase. It’s unclear exactly where that number could end up, but the property sold last week for a reported $23 million and was valued by the county at $37 million last year. Metro would also have to prove to a court that the move is necessary. 

For the recap of the rest of Tuesday’s Metro Council meeting, visit this link.

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One Response

  1. I have to wonder what commies (old or transplants from blue states) are pushing this nonsense in order to give China and other bad actors a chance to get their foot in the door. Tennessee needs higher paying jobs and this creates that as well as making sure the USA leads in AI (which will be used against us if the deep state gets their way). The left is out there schilling and creating panicans to stop President Trump’s mission to make our country the top and that it will stay that way. We cannot be undermined as we have been to this point.

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