The Clay County Commission will spend the next 12 months studying how to deal with data center development after agreeing to a moratorium.
Commissioner Dale McLerran said officials want answers about the potential impact of the facilities on local utilities, infrastructure and residents.
“These things are not going away,” McLerran said. “Obviously, State of Virginia I think has got 300 of them so far. State of Tennessee’s got 46. The closest is Crossville, Tennessee, so I mean they’re here.”
McLerran said the moratorium gives commissioners time to consult with professionals about the electricity and water requirements of data centers and determine whether the county needs permanent regulations.
Commissioners raised concerns about noise pollution, increased utility costs and the potential strain large facilities could place on local resources. The board also discussed how different types of data centers could have significantly different infrastructure needs.
“I think it’s important for us to understand what we’re dealing with so we can make a decision based on fact,” McLerran said.
McLerran said the county plans to research four different levels of data centers, including their resource requirements and potential economic benefits.
Commissioners also discussed TVA requirements concerning the cost of electrical infrastructure needed to serve data centers. Officials said those costs would fall on operators rather than existing utility customers.
The commission heard that some smaller facilities require considerably less water than larger operations, making the size and type of development an important part of the review.
Officials said no developers have approached Clay County about establishing a data center.
The moratorium temporarily suspends new data center development for one year, although commissioners can rescind the restriction earlier if they determine the county has enough information to move forward.
The commission plans to invite an industry professional to a future meeting to explain how data centers operate and help officials evaluate the potential benefits and drawbacks of allowing them in Clay County.