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Morristown, TN

Morristown Adopts Data Center Zoning: Heavy Industrial Only, With 500-Foot Setbacks

Morristown, Tennessee's city council passed a zoning ordinance that allows data centers, cryptocurrency mining and server farms only as a use on review in the Heavy Industrial district, at least 500 feet from homes, schools and occupied government buildings.

By Morningline Research · November 3, 2026

Morristown, Tennessee, now has zoning rules for data centers. The Morristown City Council passed the ordinance on second and final reading two weeks ago Tuesday, by a 6-1 vote, WVLT reported.

Until now the city's zoning ordinance did not mention data centers at all. The change gives builders and landowners a clear answer on where one could go in Morristown and what it would take.

Where a data center can be built

Under the new rules, a data center is allowed only in the Heavy Industrial (HI) district, and only as a "use on review." That means each project still goes before the Morristown Regional Planning Commission instead of being allowed outright. A site must also meet three conditions:

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What counts as a data center

The ordinance adds four definitions to the zoning code, according to the city staff memo and ordinance attached to the council agenda. A data center is any building mostly filled with computers and telecommunications equipment that process, move or store information. That covers server farms, cryptocurrency mining and artificial intelligence data centers. Each of those also gets its own definition.

Small home setups are left out. The crypto mining definition does not cover five or fewer computers mining in an enclosed structure when the mining is not commercial.

How it got here

Senior Planner Josh Cole wrote that staff reviewed codes from around the region before drafting the amendment. The planning commission voted in support of it at its September meeting, and it then went to council for two readings.

The Citizen Tribune reported that the council approved rules on where data centers "and other high-electricity-usage facilities can locate," and its headline says more restrictions are under consideration.

Why cities are writing these rules

Data centers have been in the news after people living nearby reported loud operating noise and heavy electricity and water use, WVLT noted. The station called Morristown the latest in a series of East Tennessee towns and cities to set limits on new data centers.

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