Tennessee data center and energy laws
What Tennessee has enacted on data center and energy, what each law requires, and what the bills still moving would do. Tennessee is one of 29 states that enacted a data center and energy law in the 2025 and 2026 sessions.
6 new Tennessee laws take effect in 2027
- Bills in scope
- 11bills in scope
- Past committee
- 2past committee
- Most recent action
- 18 May 2026most recent action
Data center and energy laws enacted in Tennessee
One data center and energy law enacted in the Tennessee Legislature in the 2025 and 2026 sessions, newest first. Each links to the legislature's own page.
- HB 1847Computers and Electronic Processing - As enacted, generally prohibits a municipality or electric utility to pay or absorb the cost of electrical infrastructure incurred to serve a data center; makes related changes. - Amends TCA Title 5; Title 6; Title 7; Title 13 and Title 65.Takes effect 1 January 2027
What it requires: The owner or operator of a data center must pay the full cost of infrastructure needed to support the data center. An electric utility must conduct ratemaking to ensure data center infrastructure costs are paid solely by the data center owner or operator and must not raise rates for residential or other commercial or industrial customers due to data center demand.
Large-load tariffs and cost allocation
Data center and energy in Tennessee, by topic
Water, cooling and emissions
5 bills. Enacted in 7 states.
Large-load tariffs and cost allocation
3 bills, 1 enacted. Enacted in 19 states.
Siting, zoning and permitting
3 bills. Enacted in 8 states.
Grid reliability and load flexibility
2 bills. Enacted in 11 states.
Tax incentives and clawbacks
1 bill. Enacted in 11 states.
On-site and co-located generation
1 bill. Enacted in 5 states.
Data center and energy bills in Tennessee
The bills not yet law, furthest along first, with what each would do.
1Enacted
1Past committee
9Introduced or inactive
11 bills in scope
Past committee
1
What it would do: Requires local legislative bodies to approve the location of any quarry or digital asset mining facility in a public meeting with at least 21 days' notice published in newspapers, on websites, posted at three locations, and mailed to residents within 500 yards.
Introduced or inactive
9
What it would do: Amends Tennessee Code Annotated Section 67-6-206(d) to allow qualified data centers applying for job tax credits to submit their certification electronically that they have not violated the WARN Act, Fair Labor Standards Act, or federal immigration laws within the previous 12 months.
What it would do: Creates the Tennessee Data Center Impact Review Act requiring data centers with over 20 megawatts power capacity to obtain permits from the water and wastewater operator board beginning January 1, 2027, based on water usage, environmental impact, and wastewater assessments.
What it would do: Requires data centers with more than 20 MW power capacity to register with the Department of Revenue beginning January 1, 2027, and mandates fuel suppliers and electric and water utilities serving registered data centers report usage to the department monthly.
What it would do: Creates the Bring Your Own Generation Act requiring data centers with peak demand of 100 MW or more to derive 50% of electricity from new carbon-free onsite sources and imposing a clean energy transition surcharge equal to 100% of proportional grid upgrade costs, while prohibiting fossil fuel PPAs from qualifying for state economic development incentives.
What it would do: Requires applicants and electric utilities to submit site assessments to localities before approving rezoning, special exceptions, or special use permits for new high energy use facilities requiring 100 MW or more of electrical power.
What it would do: Requires data centers with over 20 MW power capacity to register with the Tennessee Public Utilities Commission beginning January 1, 2027, and mandates electric and water utilities serving registered data centers report usage and rates to the commission, which must publish monthly reports of this data.
What it would do: Requires high performance computing facility operators using over 50 MW monthly to devote at least 50 percent of computing output to public benefit, submit annual energy and carbon footprint reports, conduct annual compliance audits, and face license suspension for noncompliance.
What it would do: Establishes a voluntary clean transition tariff allowing large energy-intensive users (25+ MW peak demand or data centers/AI facilities) to procure new clean power while bearing all incremental generation and grid costs, protecting residential and small business customers from rate increases.
What it would do: Prohibits electric utilities and high performance computing facilities in Tennessee from using transformers, parts, or equipment manufactured or sold by entities owned or controlled by foreign adversaries, and requires annual reporting to the comptroller of the treasury with compliance audits.
Bill titles link to the Tennessee Legislature's own page.
What counts as data center and energy legislation
In scope: Large-load tariffs and cost allocation; siting, zoning and permitting; tax incentives and clawbacks; on-site and co-located generation; water, cooling and emissions; and grid reliability and load flexibility.
Questions
Does Tennessee have a data center and energy law?
Yes. Tennessee enacted 1 data center and energy law in the 2025 and 2026 sessions, among them HB 1847. Each is listed on this page with what it requires.
When do Tennessee's data center and energy laws take effect?
HB 1847 on 1 January 2027.
Which data center and energy bills are moving in Tennessee?
1 bill not yet law has passed a committee or a chamber, the furthest along HB 1827 (passed committee).
What does Tennessee legislate on most in data center and energy?
Water, cooling and emissions (5 bills), Large-load tariffs and cost allocation (3 bills) and Siting, zoning and permitting (3 bills).
Are these summaries reviewed by a lawyer?
No. Which bills count as Data center and energy bills, and the line on what each law requires or each bill would do, are drafted by software from the bill's own text and not reviewed by an attorney. Every bill links to the legislature's own record: read the text before relying on it. The list covers bills from the 2025 and 2026 sessions.
Other practice areas in Tennessee
- AI in Tennessee27
- Alcohol in Tennessee25
- Cannabis in Tennessee35
- Children's Online Safety in Tennessee7
- Cybersecurity in Tennessee5
- Data Privacy in Tennessee14
- Employment in Tennessee34
- Healthcare in Tennessee94
- Insurance in Tennessee99
- Intellectual Property in Tennessee7
- Packaging and PFAS in Tennessee2
- Payments and fintech in Tennessee10
- Rental housing in Tennessee15
- Tobacco and nicotine in Tennessee13
- Transportation in Tennessee15
- All jurisdictions
Data center and energy legislation in other jurisdictions
49 more currently hold bills in this tracker
- Virginia83
- New Jersey68
- Congress61
- Pennsylvania38
- Michigan35
- Illinois23
- West Virginia22
- Maryland21
- New York19
- California16
- South Dakota14
- Minnesota13
- Oklahoma13
- South Carolina13
- Georgia12
- Indiana12
- Iowa11
- Montana11
- Ohio11
- Texas11
- Arkansas9
- Arizona9
- Connecticut9
- Idaho9
- Louisiana9
- North Carolina9
- Nebraska8
- Utah8
- Wisconsin8
- Delaware7
- Kentucky7
- Washington7
- Kansas6
- New Hampshire6
- Colorado5
- Florida5
- Missouri5
- Massachusetts4
- North Dakota4
- Rhode Island4
- Vermont4
- Maine3
- Oregon3
- Alaska2
- Alabama2
- Hawaii2
- Mississippi2
- New Mexico2
- Wyoming2
Know when Tennessee's data center and energy law changes
An alert when a bill moves, and one report a month on what changed in every state and Congress.