A proposed AI data center in Mountain City has encountered a major setback following a local planning vote.

The Mountain City Planning Commission voted unanimously Thursday, October 22, to deny the rezoning request associated with the project, according to WJHL.

Nearly a dozen residents spoke against the proposal during the meeting.

How the proposal reached this point

The earlier request sought to change the zoning designation of a South Shady Street property from M-1 to M-2.

The proposed modular AI factory or data center had prompted debate about the kind of development suitable for the area.

The October 22 commission vote is a new development beyond the initial announcement of a rezoning hearing.

What the decision means

The commission's reported action was a denial of the requested change, but readers should not assume that every possible future application or appeal is permanently barred.

The next step is to determine whether the applicant seeks further review, revises the proposal or decides not to proceed.

For residents, the case illustrates how public hearings and land-use decisions can influence the direction of local development.

Tri-Cities Daily will track any additional official action rather than treating the proposal as an approved construction project.