If you own property, are considering an investment, or are planning a move in Clarksville and Montgomery County, you may be watching the county’s proposed data center zoning amendment closely.
The proposal, identified as CZO-1-2026, has not been enacted. It is still moving through the public review and approval process. A public hearing is scheduled for October 5, 2026, and the Montgomery County Board of Commissioners is scheduled to vote on the proposal on October 19, 2026.
The proposed rules would establish where data centers could be located and what applicants would need to document before approval. For local real estate, the most important issues are industrial buffering, utility capacity, infrastructure costs, and the potential effect on the county’s tax base.
What is Montgomery County proposing for data centers?
The proposed amendment would add a formal definition of a data center to the Montgomery County Zoning Resolution. The definition covers facilities used primarily for computer servers, data storage, telecommunications equipment, networking systems, cooling equipment, backup power, energy storage, water treatment, and related infrastructure.
Under the proposal, data centers would be allowed only as a permitted-on-review use in M-1 and M-2 industrial zoning districts.
The proposed requirements include:
- A minimum site size of 10 acres
- A maximum site size of 100 acres
- A 100-foot setback from property lines adjoining zones other than M-1 or M-2
- A noise mitigation plan
- Documentation showing available water supply
- Written confirmation of electric and natural gas capacity
- Owner or operator responsibility for infrastructure improvements required to serve the facility
The amendment is available through the Clarksville-Montgomery County Regional Planning Commission’s current cases page, where CZO-01-2026 is listed among the county zoning cases. You can also review the CZO-1-2026 Data Centers PDF.
These requirements would not create an automatic right to build a data center. A proposed facility would still need to go through the applicable review process and public hearings.
How could the proposal affect industrial land values?
The most direct real estate impact would likely be concentrated in larger M-1 and M-2 industrial parcels.
A property would need to meet the proposed acreage range, have an appropriate zoning designation, and offer a realistic path to utility service. That means not every industrial tract would benefit equally from possible data center demand.
A qualifying parcel could become more strategically important if it has:
- Access to high-capacity electrical infrastructure
- Adequate water and wastewater service
- Natural gas availability, where needed
- Strong road access
- Sufficient room for setbacks, landscaping, equipment, and future phases
- A location that can limit conflicts with nearby residential areas
However, the proposal would also create additional due diligence requirements. Prospective buyers and operators would need to confirm utility capacity, document anticipated demand, prepare a noise plan, and account for any infrastructure costs.
That could increase the value of well-located industrial land, but it could also reduce speculative interest in parcels that lack utility access or cannot meet the proposed site standards. The effect would likely be selective rather than uniform across all industrial property.
Could the proposed rules protect nearby homeowners?
The proposal is designed to create more separation and oversight between future data centers and non-industrial properties.
The 100-foot setback would apply where a data center site adjoins a zoning district other than M-1 or M-2. In practical terms, this could help create additional space between a large industrial facility and nearby residential, commercial, or other non-industrial uses.
The proposed noise standard is also significant. A future data center applicant would need to submit a noise plan showing the location and extent of noise leaving the property. Under the proposal, noise could not exceed more than 3 decibels over existing ambient levels or 55 decibels at an adjoining property boundary that is not zoned M-1 or M-2.
The proposal identifies grading, landscaping, and site layout as possible tools for reducing noise. Depending on the site, that could include berms, building placement, landscaping buffers, or locating mechanical equipment away from neighboring properties.
These standards may reduce the risk of a future data center creating unexpected noise impacts near homes. However, they would not eliminate every potential concern. Buyers should still review the zoning and development status of nearby industrial land before purchasing a home close to an M-1 or M-2 district.
If you are evaluating a specific property, consider asking:
- What is the zoning classification of adjacent parcels?
- Are there nearby industrial tracts large enough to meet the proposed 10-acre minimum?
- Is the property inside unincorporated Montgomery County or within the City of Clarksville?
- Are there pending zoning, site plan, or development cases nearby?
- Could future construction affect traffic, views, noise, or utility infrastructure?
Our guide to Clarksville neighborhoods, commutes, schools, and home prices can also help you compare location-specific factors when considering a move.
What does utility capacity mean for Clarksville real estate?
Data centers can require substantial electricity, water, cooling, and other infrastructure. The proposed amendment would require applicants to identify their water sources and demonstrate that the site can be served.
If a facility would use municipal water, the applicant would need documentation from the provider regarding its ability to serve the project. Other water sources could require additional studies and applicable permits.
The proposal would also require written confirmation from the applicable electric utility and natural gas provider regarding available or planned capacity. Applicants would need to identify anticipated peak electrical demand by phase and at full build-out.
For homeowners and investors, this creates an important distinction: proximity to a potential data center site does not automatically mean nearby properties will receive better utility service or higher values. The actual outcome would depend on the project, the utility network, the infrastructure improvements required, and how those improvements affect the surrounding area.
The proposal states that the data center owner or operator would be responsible for infrastructure improvements necessary to provide utility service to the facility, consistent with applicable Tennessee law. This is intended to prevent those project-specific costs from being shifted to other utility customers.
Could data centers strengthen Montgomery County’s tax base?
A successful data center project could add substantial taxable commercial or industrial property to the county. That may support the local tax base and contribute to demand for contractors, utility work, site development, and related services.
At the same time, the tax-base opportunity must be weighed against infrastructure capacity and neighborhood compatibility. A project that requires significant utility expansion, creates noise concerns, or generates pressure on local systems could produce different results than a project that can be served efficiently within existing industrial areas.
The proposed rules appear intended to manage that balance rather than prohibit data centers entirely. They would identify appropriate industrial locations, require documentation before approval, and assign infrastructure costs to the facility owner or operator.
ClarksvilleNow reported that local officials have said there are currently no new data centers proposed in Montgomery County. The county is already home to Google’s existing data center, which predates the proposed amendment. The proposal is focused on future facilities and expansions that would fall under the new requirements if the amendment is adopted.
What should Clarksville homeowners and investors do now?
Because the amendment is only proposed, you should not treat it as a final change to Montgomery County zoning. The scheduled public hearing and Board of Commissioners vote could affect the proposal’s timing or final language.
Still, the proposal is relevant to real estate decisions today.
If you own a home near industrial property
Review the zoning and development status of nearby parcels. A proposed 100-foot setback and noise plan may reduce certain risks, but the location of a property’s neighboring land remains important to its long-term marketability.
If you own industrial land
Confirm your zoning, acreage, road access, and utility availability. A large M-1 or M-2 tract may attract interest, but buyers and operators will likely require detailed documentation before assigning a premium.
If you are considering rural land
Do not assume agricultural or rural acreage has data center potential. The proposal would limit data centers to M-1 and M-2 districts, so a realistic path to industrial zoning and utility service would be necessary.
If you are buying or selling a Clarksville home
Focus on the property’s specific location, surrounding zoning, comparable sales, condition, and buyer demand. Broader headlines about data centers are not a substitute for a property-specific valuation.
For context, the Freddie Mac Primary Mortgage Market Survey reported a 7.03% average 30-year fixed mortgage rate for the week ending September 24, 2026. This is a national benchmark, not a personal mortgage quote. Your actual financing terms may vary based on credit, loan type, down payment, lender, and other factors.
The bottom line
Montgomery County’s proposed data center zoning amendment has not been enacted. If adopted, it would concentrate future data centers in M-1 and M-2 industrial zones, require sites between 10 and 100 acres, establish 100-foot setbacks from non-industrial zones, require noise and utility documentation, and place infrastructure costs on the owner or operator.
For real estate, the likely effects would be most concentrated in larger industrial properties with strong utility access. Nearby homeowners may benefit from clearer buffering and noise requirements, while the county could gain additional taxable commercial development if suitable projects move forward.
If you want to understand how the proposal may affect your property’s market position, request a Clarksville home-value analysis. Haus can help you evaluate recent comparable sales, surrounding land use, neighborhood conditions, and the factors most likely to influence your property’s value.
For direct assistance, contact Haus.
Sources
- Clarksville-Montgomery County Regional Planning Commission: Current Cases
- CZO-1-2026 Data Centers PDF
- ClarksvilleNow: Proposed zoning update would restrict future data centers on water, electric, noise
- ClarksvilleNow: Future data centers to require public hearing under new rules proposed for Montgomery County
- Freddie Mac Primary Mortgage Market Survey
