Johnson County leadership has been debating how to ensure that future industrial development is in keeping with the county’s quiet agricultural roots. While any noxious industry is a concern, the current focus is data centers. Cleanspark, in particular, has been considering locations within the county in addition to the location inside Mountain City reported in previous editions of The Tomahawk.
Additionally, as corporations’ appetite for AI grows, they will need an exponentially increasing amount of computing power and data centers. Companies are targeting rural counties where zoning is more permissive and open land is less expensive.
Because of the amount of power data centers consume, some are building their own on-site power generation facilities as well. The CBRE U.S. Real Estate Market Outlook for 2025 estimates that there will be 4,750 data centers under construction in the United States, roughly equal to the number already in operation today.
During the June 19, 2025, County Commission Meeting, County Mayer Larry Potter, and County Attorney Ryan Carroll suggested the use of the Tennessee County Powers Act as an option Tennessee law provides for counties without zoning to use to implement limits on public nuisance.
The Tennessee County Powers Act would enable the County Commissioners to create rules for unincorporated areas inside Johnson County. That is all of the county except for those areas inside Mountain City limits.
This act provides the County Commission broad authority to enact rules. This Act can be used to limit noise, trash, infestations, unpleasant smells and the like. It can also be used to limit uses. Data Centers, to date, can be limited via the County Powers Act.
The County Powers Act is intended to cover those areas not already covered by other state and federal legislation. It also does not give the County authority to create rules that impact agriculture, since Tennessee is primarily an agricultural state. Other industries and uses already covered by state and federal legislation, and therefore not covered by the County Powers Act include: the sale of beer and alcoholic beverages, surface mining, production of oil and gas, activities covered by environmental protection laws and regulations dealing with air pollution, atomic energy, solid waste disposal and management, landfills, hazardous waste management, petroleum underground storage, oil spill cleanup, dry cleaning, water, wastewater and sewerage, water management, wells and dams.
The county can already lean on state and federal legislation to limit impact. For example, the Tennessee Department of Environment and Conservation already regulates water quality. This would cover cases where an industry discharges contaminated water, or pumps more than 10,000 gallons of water per day.
At the federal level, the US Fish and Wildlife Service administers the Endangered Species Act should an industry threaten the habitat of an endangered species. Johnson County is home to 107 listed threatened species of plants and animals. However, these existing laws are likely not adequate to prevent undesirable industries from building in Johnson County.
The County Commission would need to authorize the powers granted under the County Powers Act by a two-thirds vote. The County Commission would then need to determine what limits to enact under the County Powers Act. During the June 19 County Commission meeting, the County Commissioners were asked to talk with their constituents about what limits the community is interested in, if any. This item is expected to be on the July 17 County Commission agenda. County Commissioner contact information is available on the Johnson County website as well as via the mayor’s office.
