Bill > SB2128

This bill establishes new regulations for data centers in Tennessee, defining terms like "data center" as facilities primarily housing electronic equipment for digital information processing, storage, and transmission, along with necessary cooling equipment. The core provision mandates that the owner or operator of a data center, including those undergoing expansion, must bear the entire cost of any infrastructure, such as roads, bridges, water, sewer, and electric lines, required to support the data center. Furthermore, electric utilities are required to structure their rates so that the costs associated with providing electricity to data centers are solely covered by the data center's owner or operator, preventing these costs from being passed on to residential or other commercial and industrial customers. The bill also allows electric utilities to create a separate customer class for data centers and requires them to publicly document that any rate increases are not due to data center demand. Complaints regarding violations can be filed with the Tennessee Public Utility Commission or the utility's governing board. This act will take effect on January 1, 2027, and apply to actions and agreements made on or after that date.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB2128&ga=114