Tennessee city clears path for crypto mining, data centers with new zoning rules

The Board of Mayor and Aldermen in Kingsport, Tennessee just dropped a unanimous vote to amend zoning laws — paving the way for crypto mining ops and data centers to set up shop. This isn't just a vibe check; it's a full regulatory green light.

In a Tuesday meeting, the board approved the ordinance on first reading, following a December recommendation from the city’s planning division. But hold up — it needs a second vote before it’s officially adopted. No rubber stamp yet.

Here’s the deal: crypto miners can operate in Kingsport, but only in “completely enclosed buildings” at least 500 feet (152 meters) from residential zones. Noise limits? Max 60 dBA from the property line — because nobody wants to hear mining rigs 24/7. (Looking at you, Hood County, Texas, where residents literally sued over the racket.)

Kingsport’s population sits around 57,000, making this move significant for a state already seen as miner-friendly. Remember CleanSpark? They scooped up seven mining facilities near Knoxville in 2024. Tennessee is low-key becoming a mining hub.

Meanwhile, Tennessee House Rep Jody Barrett just introduced the Tennessee Strategic Bitcoin Reserve Act. The bill would let the state treasurer invest up to 10% of Tennessee’s general fund in Bitcoin (currently trading around $89,558).

Will it pass? Unclear. But if it does, it kicks in July 1. Tennessee isn’t just opening doors for miners — it’s flirting with stacking sats in the state treasury.