Tennessee mayor wants pause on data centers, industry says focus should be on regulation

CEDAR HILL, Tenn. (WZTV) — A Facebook post from Cedar Hill Mayor John Edwards is fueling a broader debate over whether Tennessee communities should embrace the rapid growth of data centers or hit pause until more regulations are in place.

Edwards recently proposed a two-year moratorium on new data centers and cryptocurrency mining facilities in Cedar Hill, citing concerns about electricity demand, water use, air quality and the long-term impacts these large developments could have on rural communities.

While there are currently no known data center proposals in Cedar Hill, Edwards said the issue caught his attention after learning about a large project planned just across the Tennessee-Kentucky line in Franklin, Kentucky.

“It made me realize, oh, this is at our back door,” Edwards told FOX 17 News.

The mayor said he began researching data centers after hearing concerns from residents and reading about projects being proposed across the country.

“We need to get on top of this issue and figure out what we can do to protect the folks of Robertson County,” Edwards said.

Why the concern?

Data centers are physical facilities that store, process, and distribute enormous amounts of digital information. They power everything from social media platforms and cloud storage to streaming services and artificial intelligence programs.

As demand for AI continues to grow, so does demand for data centers.

According to Data Center Map, Tennessee is home to more than 60 data centers, with more than a third located in the greater Nashville area. Nashville alone has dozens of operational or planned facilities, while Gallatin has become home to one of the largest data center campuses in the region.

Meta’s Gallatin campus spans roughly 900 acres and uses approximately 300 megawatts of power, enough electricity to power roughly 200,000 homes.

Edwards worries that projects of that scale could place significant strain on local infrastructure.

“The electricity just massive gobblers of electricity,” he said.

He also points to concerns over water consumption and air quality. In Memphis, environmental groups have challenged portions of Elon Musk’s xAI supercomputer operation, arguing some power-generation equipment violated federal clean-air requirements.

Edwards said local governments should have time to study those impacts before approving similar developments.

“I don’t think that they fit specifically in Robertson County and definitely not in my community,” he said.

Industry says concerns are real, but some are outdated

Not everyone agrees that a moratorium is the answer.

Kirk Offel, founder and CEO of Overwatch Mission Critical, a company involved in data center development, said many of the concerns communities raise are legitimate but often based on older versions of the technology.

“The concerns about energy are valid. The concerns of water and the concerns of jobs are all valid, but they’re all outdated,” Offel said.

Kirk Offel, founder and CEO of Overwatch Mission Critical (Fox 17 News)

Offel argues modern data centers are increasingly being designed with closed-loop cooling systems that require little to no water. He also said developers are beginning to build power infrastructure alongside projects rather than relying solely on existing electrical grids.

He believes communities should focus on creating standards and regulations rather than trying to block projects entirely.

“Get your policymakers to figure out how to write rules and regulate,” Offel said.

Offel compared the growth of data centers to the development of highways and other transformational infrastructure projects, arguing that communities that reject them could miss out on future investment and job creation.

“Every city right now should be scrambling to find a way to put data centers in their city,” he said.

The fight over growth

The debate unfolding in Cedar Hill mirrors conversations happening across the country as local leaders weigh the economic benefits of data centers against concerns about energy use, environmental impacts and quality of life.

Critics argue large facilities can consume significant amounts of electricity and water while creating relatively few long-term jobs compared to their footprint.

Supporters counter that newer facilities are becoming more efficient and can generate tax revenue, construction jobs and future economic development.

Edwards said he is not necessarily opposed to future regulations that could make data centers safer or more sustainable. However, he believes local communities deserve more time to understand the potential impacts before welcoming large-scale projects.

Offel said he would encourage local leaders to work with developers rather than shutting the door completely.

“I wouldn’t stop him. I would just force him to meet you halfway,” Offel said, referring to Edwards’ concerns.

What’s next?

Edwards said he plans to bring his proposed moratorium before Cedar Hill leaders next month.

As artificial intelligence, cloud computing, and digital storage continue expanding, both supporters and critics agree on one thing: the conversation about data centers in Tennessee is only beginning.