NASHVILLE, Tenn. – State Rep. Lowell Russell, R-Vonore, provided an update on a new law regulating data centers in Tennessee recently approved by the General Assembly.
House Bill 1847 established guardrails for data center operations in Tennessee, ensuring costs tied to large-scale energy demand are not shifted to taxpayers or utility customers.
“As data center development expands across the country, I’ve heard concerns from residents about the impacts these facilities can have on local communities and I share many of those concerns,” Russell said. “While I do not support a data center in Loudon or Monroe counties, Tennessee should have clear safeguards in place wherever they are developed. This law helps ensure utility customers are not left paying for related infrastructure costs.”
The law clarifies that municipalities and electric utilities are not required to absorb infrastructure costs associated with serving data centers.
Utilities may allocate certain infrastructure expenses only when improvements provide broader system benefits, comply with existing cost-sharing policies and do not result in higher rates for existing customers.
The statute also sets standards for how utilities may reimburse data center operators, requiring consistency with existing customer policies and prohibiting preferential treatment.
It also limits liability for utilities that decline to purchase power from independent producers and outlines how data centers may access power through direct connections or existing transmission system, subject to federal law and utility oversight.
This issue has also been discussed locally with residents raising questions about potential data center development and concerns about power use, costs, environmental impact and quality-of-life effects.
The law went into effect upon Gov. Bill Lee’s signature on May 7.
Lowell Russell represents District 21 in the Tennessee House of Representatives which includes part of Loudon and Monroe counties.
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