by Leslie Lytle, Messenger Staff Writer

At the July 7 meeting, the Monteagle Planning Commission voted to recommend the Monteagle City Council adopt an ordinance severely constraining the location of data centers in Monteagle and to allow a light manufacturing facility in the C-3 interstate commercial interstate district. In both discussions, definitions played a key role: what is a data center and what qualifies as light manufacturing and sales consistent with interstate commercial and public uses?

At the June meeting, the commission tasked Southeast Tennessee Development (SETD) town planner Jonathan Rush with drafting an ordinance addressing where data centers could be located in Monteagle. Rush cited a proposed data center near the Nashville Zoo and concerns about demands on the power grid and water supply. Grundy County passed a resolution calling for a two-year moratorium on data centers locating in the county [see Messenger, May 29, 2026]. Rush pointed out a moratorium had legal ramifications, and the council as a legislative body would need to initiate the action, not the planning commission. The commission approved an ordinance amendment stipulating data centers were allowed only in Industrial Zoning and would need to be approved by the Board of Zoning Appeals as a special exception, significant constraints since Monteagle has no areas zoned for industrial use. Rush maintained a data center did not constitute commercial use since it did not generate sales tax or jobs.

Asked if the ordinance should include a concise definition, Rush said most people understood data centers to have something to do with computers and AI, but all the communities in the region initiating regulations governing data centers had different definitions. “My staff is looking to have a more solidified, in-depth data center zoning ordinance that is consistent throughout the region,” Rush stressed. He added the Institute for Public Service, the state local planning office, was also working on a statewide approach.

“This is a start, and then we could amend it,” said Commissioner Katie Trahan urging approval. The commission unanimously recommended the Monteagle City Council adopt the ordinance.

Other recommendations to the council at the July meeting lacked consensus.

Justin Dirkson, COO of Manchester-based KD3 Construction, requested approval to locate a facility at 850 Dixie Lee Avenue. The business specializes in custom homes, condominiums, shops, garages and other metal frame buildings. Dirkson said KD3 would sell building materials, including metal components manufactured on site, to both contractors and the public. Customers meet with company consultants prior to manufacture of building components. Buildings are not assembled on site. “The building goes out in pieces,” Dirkson said.

Commission Chair Richard Black argued the business did not conform with the definition of C-3 commercial zoning: “to meet specific opportunities and needs of interchanges of interstate highways to serve both public and commercial vehicles as well as addressing unique commercial opportunities and problems created by access to interstate highways, excluding uses or accommodations not directed toward interstate highways.”

“Your business does not meet that criteria,” Black insisted.

Commissioner Alec Mosley disagreed. “[The business] has a connection with the interstate,” Mosley said. “They move things on heavy trucks. It fits here as well as anywhere.”

“I think so, too,” said Trahan. “They’re not putting stuff together like in industrial.”

“I can’t find anything in your industrial use that would allow it,” Rush said.

Commissioner Nate Wilson cited ordinance. “It says ‘the planning commission may determine if light manufacturing is compatible.’ It seems like an appropriate use.”

Black countered the commission needed to define “light manufacturing. It’s a mistake allowing it in C-3.”

“I don’t know why we delay and delay,” said Commissioner Dan Sargent. Alderman Dean Lay concurred, “It’s ridiculous how we treat people who want to do business here.”

Black voted against allowing KD3 to operate a facility at the 850 Dixie Lee Highway site.

In other business, the commission approved the long discussed Downtown Zoning District amendment intended to encourage commercial development in the downtown C-1 corridor. Both Black and Trahan voted no, objecting to no minimum parking requirements.

The commission also approved the Residential Overlay amendment regulating residential development in property adjacent to the C-1 commercial corridor. At the commission’s request, Rush added a provision allowing dormitory-style living quarters, with the stay not to exceed 30 days. Black and Trahan voted no, again objecting to no required parking.