
St. Joseph, Tennessee, has approved the first reading of an ordinance that would ban new cryptocurrency mining operations, AI computing facilities and data centres within the town.
The proposal would also prohibit permits, approvals and utility extensions for new high-intensity digital infrastructure if it becomes law after a public hearing and final vote.
Town leaders said the ordinance is designed to prevent commercial or industrial-scale digital infrastructure from being developed through alternative approval methods.
The measure has passed its first reading but must complete a public hearing and a final reading before taking effect.
The proposal comes months after Tennessee approved a statewide ban on cryptocurrency ATMs, citing concerns about fraud linked to virtual currency kiosks.
If adopted, the ordinance would prevent future cryptocurrency mining operations and large data centres from operating within St. Joseph's city limits.
Tennessee has become the second U.S. state to ban Bitcoin ATMs, making it a criminal offence to own or operate the machines starting July 1.
Tennessee has moved to block prediction market platforms from offering sports contracts to residents.