Kingsport planning commission addresses data centers, crypto mining

KINGSPORT — The Kingsport Regional Planning Commission discussed amending the city's code to address the possibility of data centers and crypto mining at its Monday work session. A definition for data centers and one for crypto mining is drafted to be added to city code. Data centers and crypto mining will also be designated for zones that are "by far the most land-use intensive," like zones for car-crushers and Eastman Chemical Co. operations, said Kingsport Planning Manager Ken Weems. Interested developers would also need to meet certain criteria including being 500 feet from a residential district and remaining below certain sound levels. Sound and vibration studies would also need to be conducted for the facility. Three sound studies would be required: a preliminary study, an interim study when the facility applies for a building permit approval, and a study six months into its operations. The code would also specifically address data centers built as an accessory to pre-existing operations. "I think that's going to be a much more likely thing that we see here in Kingsport compared to those big data centers that you see … where they've got large swaths of flat land with no one around," Weems said. Crypto mining would not be permitted for data centers built for accessory use. Weems said he looked at 15 different zoning ordinances from around the area to determine the definitions that would be added to the Kingsport code. Data centers are typically large buildings that house rows of computers for storing and sharing large amounts of digital data. Heating and cooling equipment is required to run those computing systems. Data centers have been around for years but have recently increased to support AI growth. Crypto mining is how cryptocurrencies finalize transactions. Weems said it is of "extreme importance" that the text addresses cryptocurrency mining due to the noise nuisances it could have on surrounding communities. "All these that make all the sound are [crypto] mines, [crypto]-specific, that's what creates all the sound when you hear all the experts talk about all these things," said Weems. The code will not apply to crypto mining operations that require five computers or less. "If you're doing small-scale… it's not included in that definition … in case you have some computer guy at his or her house that wants to try and do this out of their bedroom," said Weems. "That's fine if they want to take a stab at it." Weems said the proposed amendments to the zoning code are in response to the wider trend of data center and crypto mining development across the country. The planning commission will discuss the proposed amendment to the code at its Thursday meeting.