Kingsport, Tennessee, has taken a proactive step in regulating emerging technologies by approving new zoning rules for data centers and cryptocurrency mining operations. The Kingsport Board of Mayor and Aldermen approved the ordinance on its first reading during a meeting on Tuesday, January 20, 2026. The move establishes specific development and location standards for these facilities within the city.
Planning Manager Ken Weems emphasized that the ordinance doesn't prohibit data centers or crypto mining but sets guidelines to protect existing property owners. He stated that the amendment creates an avenue for these types of uses to come into the city while safeguarding current residents and properties.
The ordinance introduces formal definitions for both data centers and cryptocurrency mining. It also outlines different requirements depending on whether a data center is a primary operation or an addition to an existing business. Cryptocurrency mining will only be allowed as a principal use in heavy industrial (M-2) zoning districts, requiring a special exception approval from the Board of Zoning Appeals.
Proposed standards include a 100-foot setback from property lines and a 500-foot buffer from residential areas, with a maximum sound level of 60 decibels at the property line. Weems noted that cryptocurrency mining operations require additional oversight due to the noise generated by cooling equipment. Applicants will need to submit multiple sound studies during permitting and construction, along with a vibration study, to demonstrate compliance.
Board members, including Alderman Morris Baker, have voiced support for this approach. Baker noted that instead of shutting down new technology, the city is opening the door while implementing safeguards.
Kingsport Planning Commission initially discussed amending the city's code to address data centers and crypto mining in December 2025. The code specifies that data centers and crypto mining will be designated for the most land-use intensive zones, similar to those used by car-crushers and Eastman Chemical Co.. Developers must meet criteria such as being 500 feet from any residential district and adhering to specific sound levels. The city will require three sound studies: a preliminary study, an interim study during building permit application, and a study six months after operations begin.
The code distinguishes between data centers built as primary operations and those built as accessory to pre-existing operations, with crypto mining not permitted for accessory data centers. Planning Manager Ken Weems examined 15 different zoning ordinances from the area to create definitions for the Kingsport code. Weems highlighted the importance of addressing cryptocurrency mining due to potential noise disturbances to surrounding communities, clarifying that the code will not apply to crypto mining operations using five or fewer computers.
Michael Parker, Director of Economic Development for NETWORKS Sullivan Partnership, stated that communities are increasingly taking measures to protect themselves from the negative impacts of data centers and crypto mining facilities. NETWORKS is working to guide data center growth in a way that captures the benefits while preserving community character and residents' peace of mind by crafting clear land-use definitions, performance requirements, conditional-use processes, and strong public engagement.
