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

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

HB 1827County Government - As introduced, requires a local legislative body to approve the location of any quarry or digital asset mining facility in a public meeting. - Amends TCA Title 5; Title 6; Title 7; Title 13 and Title 68.Passed committee

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

HB 2047Taxes, Sales - As introduced, authorizes a qualified data center that applies for job tax credits to certify electronically that it has not, within the previous 12 months, been found to be in violation of the Worker Adjustment and Retraining Notification (WARN) Act, the Fair Labor Standards Act of 1938, or federal immigration laws. - Amends TCA Title 67, Chapter 6.In committee

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.

HB 2392Business and Commerce - As introduced, creates the "Tennessee Data Center Impact Review Act." - Amends TCA Title 5; Title 6; Title 7; Title 10; Title 62; Title 65; Title 68 and Title 69.In committee

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.

HB 2456Utilities, Utility Districts - As introduced, requires certain data centers to register with the department of revenue; requires fuel suppliers, and electric and water utilities that provide fuel and service respectively to registered data centers to report usage and rates to the department; requires the commissioner to compile and publish certain information based on reports received from utilities. - Amends TCA Title 5; Title 6; Title 7; Title 10; Title 62; Title 65; Title 68 and Title 69.In committee

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.

HB 2463Energy - As introduced, enacts the "Bring Your Own Generation Act." - Amends TCA Section 39-17-1002; Section 67-6-102 and Title 68.In committee

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.

HB 2061Utilities, Utility Districts - As introduced, requires certain data centers to register with the Tennessee public utilities commission; requires electric and water utilities that provide service to registered data centers to report usage and rates to the commission; requires the commission's executive director to compile and publish certain information based on reports received from utilities. - Amends TCA Title 5; Title 6; Title 7; Title 10; Title 62; Title 65; Title 68 and Title 69.In committee

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.

HB 1461Computers and Electronic Processing - As introduced, requires high performance computing (HPC) facility operators to devote 50 percent of the computing and data processing output of the facility for a public benefit; requires HPC facility operators to produce an annual report of the facility's energy consumption and carbon footprint; requires such operators to conduct an annual internal compliance audit and submit to an audit upon request by certain governmental entities. - Amends TCA Title 4; Title 8 and Title 68.In committee

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.

HB 2054Energy - As introduced, enacts the "Data Center, Artificial Intelligence, and Clean Transition Tariff Accountability Act." - Amends TCA Title 7 and Title 65.In committee

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.

HB 2464Consumer Protection - As introduced, prohibits electric utilities and high performance computing centers in this state from using transformers, parts, or equipment manufactured or sold by entities owned or controlled by foreign adversaries to support any part of their operations; requires such utilities and centers to report to the comptroller of the treasury; makes related changes. - Amends TCA Title 4; Title 7; Title 8; Title 47, Chapter 18; Title 65 and Title 68.In committee

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 LawSignals covers

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.

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.