Data center developers address concerns

As local officials continue to gather more information on data centers, developers behind the proposed Hixson Data Center spent Monday morning attempting to answer many of the concerns that have dominated local discussion over the last week.

During a question-and-answer session hosted by Warren First, representatives from the proposed project - Ray and Alex Hixson - were joined by McMinnville Mayor Ryle Chastain, Warren County Executive Terry Bell and a panel that included representatives from Caney Fork Electric, Ben Lomand Connect, IT professionals and concerned citizens.

One of the first topics addressed was a question many residents have asked online: Who knew about the project and when?

Chastain said city officials only recently learned about the proposal and stressed that no formal application has been submitted.

“As far as the city goes, there has been nothing submitted in an official capacity,” said Chastain.

Chastain noted that Hixson representatives met recently with city officials Sean Garrett and Nolan Ming to provide a high-level overview of the project, but emphasized that no approvals or agreements have been made.

“Those two individuals do not have the unilateral authority to make any decisions like that,” said Chastain, referring to city staff members who attended the meeting. "When a proposed project - anything of this magnitude - needs to come before the city, there's a very extensive process. They have to submit proposals to community development. It has to go through codes review, the planning commission, there has to be public hearings and input from the community - and none of that has happened or transpired at this point."

Alex Hixson, director of development for the proposed facility, said conversations with McMinnville Electric System began roughly 13-14 months ago as developers explored the feasibility of the project. He said discussions with Ben Lomand followed approximately 11 months ago regarding fiber connectivity needs.

Bell said he was informed about the proposal weeks ago, but realizes this project is going to be more of a city issue.

“The county has no jurisdiction over this project inside the city limits,” said Bell. "Regardless of what happens out in the county - anything we do would not affect this project at all because the city has total control.

"We do not have control over Caney Fork. We don't have control over Ben Lomand or the water infrastructure on this project here. As far as the county, there's been nothing submitted to the county because there will not be even when this project goes forward."

The discussion then shifted to what has become perhaps the biggest public concern: whether the data center could strain local resources.

Hixson pushed back on fears that the facility would place a major burden on the city's water supply.

“We're not trying to destroy water supplies,” said Hixson.

According to Hixson, the current design would use approximately three million gallons of water annually. Hixson pointed out the city of McMinnville can provide five million gallons of water daily.

“It comes out to about the average of 31 McMinnville residents or households,” said Hixson.

Electricity has generated similar concerns, particularly as residents worry data centers could increase utility costs or reduce capacity for existing customers.

Chastain said McMinnville Electric System does not currently have the capacity to power a project of this size. Hixson responded that the facility was never intended to draw power from the local electrical grid and would instead operate using Bloom Energy fuel cells powered by natural gas.

“We talked to (MES) about a year and two months ago when we first started. They made it very clear that they will not be providing any power to this project. They will not be able to and they do not want to. So, it is not going to happen," said Alex Hixson. "No electric rate should not be raised because of us."

John Chisam, representing Caney Fork Electric, echoed that concern from the utility side, but noted that in these situations, many require large industrial customers to absorb infrastructure costs rather than shifting those expenses to existing customers.

Questions were also raised about emissions, noise and environmental impact.

Hixson acknowledged that any industrial project creates some impact, but argued the facility is being designed differently than many of the massive data centers that have drawn criticism nationally.

“We're not claiming no environmental impact, but we are saying that we're trying to do it the most efficient and safe way possible,” said Hixson.

Ray Hixson urged residents to continue asking questions before forming conclusions.

“We're not asking anybody to ignore any of these concerns. We're not asking for blind trust,” said Ray Hixson. “We're asking for you to take the chance and listen and understand and ask any more questions that you need to understand it.”

What a proposed Hixson Data Center could provide, according to Alex and Ray, is high-paying jobs. Preliminary numbers provided Alex was a payroll of $2.1 million a year for 23 jobs, along with noting that revenue through taxes could net the city and county over $2 million each.

While developers sought to ease concerns Monday, local governments are continuing to examine the issue.

The McMinnville Board of Mayor and Aldermen will meet Wednesday at 6 p.m. to consider a moratorium on data centers, bitcoin mining facilities, microchip manufacturing facilities and similar high-impact uses while regulations can be developed.

“The point of this temporary stay is to buy the city time to learn more about these ventures and adopt zoning codes and regulations in their regard,” said Chastain.

Warren County's Economic and Agriculture Committee has placed "Discuss Data Center” on its Tuesday agenda, signaling county leaders are beginning to examine what authority may be available if similar projects are proposed outside city limits in the future.

Bell noted Monday that Warren County currently lacks zoning regulations and has fewer tools available than municipalities when it comes to regulating development.

“We want to protect our residents here,” said Bell.

The county committee meeting is scheduled for Tuesday at 5 p.m. in the Full Court Room of the Warren County Administrative Building, while the city's public hearing on the proposed moratorium will take place Wednesday at 6 p.m. in the City Hall board room. Public comments will be heard at both meetings.

Information from Warren County Joy and Warren First was used in this story.