[Andy Fox]

Please see this amended language for the moratorium proposal:
RESOLUTION

A RESOLUTION OF THE COMMISSION OF KNOX COUNTY, TENNESSEE, APPROVING AND AUTHORIZING A MORATORIUM ON DATA CENTERS IN KNOX COUNTY

WHEREAS, the Knox County Board of Commissioners is investigating the health and environmental impact of current and emerging technologies, including but not limited to businesses commonly referred to as “data processing” or “data mining” centers or “crypto-currency mining” businesses (referenced herein as Data Centers)

WHEREAS, Data Center businesses and/or operations are ordinarily characterized by the peak electric demand of the business and/or operation, which is the reason the Knox County Board of Commissioners has used the 5 MW threshold;

WHEREAS Data Center businesses and/or operations require extraordinary levels of electrical power, often equivalent to the consumption of thousands of homes, placing strain on local utilities and potentially increasing costs to residential ratepayers;

WHEREAS, such businesses and/or operations generate significant continuous noise from industrial-grade cooling systems, fans, and compressors, which can negatively impact public health and the peaceful enjoyment of nearby communities;

WHEREAS, such businesses and/or operations often require extraordinary levels of water for cooling, 200,000 to 300,000 gallons of water per day for a Data Center facility that has a peak electric demand of 50 MW;

WHEREAS, Data Center businesses and/or operations provide limited job creation, minimal economic impact compared to the infrastructure burden they impose, and may not align with the long-term economic development goals of Knox County as understood and identified at this time;

WHEREAS, Multiple jurisdictions nationwide have restricted or prohibited data-mining businesses and/or operations or generative AI businesses and/or operations due to concerns over electrical grid strain, noise nuisances, fire hazards, and the lack of community benefit, and several Tennessee counties either have implemented a moratorium or are in the process of implementing a moratorium, such as Washington County;

WHEREAS, the Knox County Board of Commissioners has a responsibility to protect the health, safety, and welfare of its citizens and to the environment in which they reside, and the Board needs additional time to investigate the impacts of these businesses and operations on the citizens of Knox County, Tennessee;

WHEREAS, currently, the Knox County Board of Commissioners finds that despite the untoward demand placed on electric utility providers, the source of power that best protects the health, safety, and welfare of its citizens for currently existing Data Center businesses and/or operations in Knox County is through electric utility providers, and that alternative sources of power such as gas turbines would place even greater impositions upon the citizens of Knox County;

BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF KNOX COUNTY, TENNESSEE THAT:

SECTION 1. The Knox County Board of Commissioners, for the purpose of this Resolution, defines a Data Center as a private (non governmental) business that:
1) primarily operates:
a) electronic equipment used to process, store, or transmit digital information; and
b) environmental control equipment necessary to maintain proper operating conditions for the said electronic equipment; and
c) (i) said business is projected to have a peak electric demand of 5 MW; or
(ii) said business refuses to disclose its peak electric demand level

2) does not include any operation fitting these characteristics that is owned or operated by the State of Tennessee

3) does not include an operation fitting these characteristics that is owned or operated by Knox County, provided that Knox County does not lease to a nongovernmental third-party any operating capacity that would require a greater peak electric demand greater than 5 MW.

SECTION 2. Knox County hereby imposes a moratorium effective immediately through to June 30, 2027, to begin upon passage of this Resolution, prohibiting the operation of Data Centers within Knox County, other than Data Center businesses and/or operations currently in operation in Knox County at the time of passage, identified as follows.

Bitdeer Tennessee, 5101 S. National Dr.
Infinity Data Center, 2575 Willow Point Way
Scipio technologies, 500 W. Summit Hill
Tenhats Knoxville, 500 Fort Summit Way
Windstream Knoxville, 2333 Lovell Rd.

SECTION 3. No Data Center business and/or operation, identified above, may seek to expand its business by increasing its current contract for peak power with its local utility.

SECTION 4. During such moratorium, no avoidance of such moratorium may be achieved by implementing alternative power sources for the Data Center business or operation, for example, by using gas turbines to satisfy additional energy demands over and above the current contract for peak power with its electric utility provider.

SECTION 5. During such moratorium, no Data Center business and/or operation, identified above, may seek to supplant its contract for peak electric demand with its electric utility provider, in whole or in part, by generating power through the use of gas turbines or other mechanism.

SECTION 6. This moratorium may be extended by vote of this body beyond the initial June 30, 2027 expiration date.

SECTION 7. If any portion of this Resolution is found invalid by a court of competent jurisdiction, the remaining sections shall remain in full force and effect. This resolution shall take effect from and after its passage. All resolutions in conflict herewith shall be and the same are hereby rescinded insofar as such conflict exists.

SECTION 8. This resolution shall take effect as provided by the Charter of Knox County, Tennessee, the public welfare requiring it.

[Angela Russell]

Commissioner Fox,
Please provide this to the commission office in pdf or word form so that it can be attached to the final agenda when it is published. I would like the public to be able to easily access the detail in advance for the meeting.
Thank you.

[Andy Fox]

Yes contemporaneous with this I provided it to Dru for attachment.

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