Kingsport City leaders advance Bitcoin mining and data center regulation

The Kingsport Board of Mayor and Aldermen has advanced a new ordinance establishing zoning rules for crypto mining operations and data centers in the city, according to WJHL.

Passed on first reading Tuesday, the ordinance sets standards for data centers and crypto mining, including setbacks, noise limits and zoning restrictions, while allowing the uses under strict oversight. Manager Ken Weems said it would protect existing property owners.

Under the ordinance, mining crypto assets, like Bitcoin, would be permitted only in heavy industrial zones and would require special exception approval and ongoing sound and vibration studies due to noise concerns.

Several board members praised the ordinance as a balanced and well-researched approach, noting it is already being reviewed by other communities.

The ordinance now heads to a second reading, where final approval would put it into effect.

The discussion comes as Bitcoin operators have faced intense public scrutiny over noise in nearby towns.

CleanSpark’s proposed 30-megawatt facility stalled last year after local officials rejected a key rezoning request, despite assurances that immersion cooling would reduce noise.

Residents pointed to the persistent noise from a nearby mining site in Limestone as evidence that such operations clash with the peace and quiet of residential areas.