AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 10; Title 62; Title 65; Title 68 and Title 69, relative to data centers.
SB2112 creates a new state registration and reporting framework for large data centers in Tennessee, defined as privately owned and operated facilities with more than 20 megawatts of power capacity. Beginning January 1, 2027, a data center may not operate unless it is registered with the Department of Revenue, and the registration must include the facility’s address, responsible contact information, estimated power capacity, and the identities of its electric, water, and backup fuel suppliers. Owners or operators must update the department within 30 days if any of that information changes, and must also notify the department when the facility stops operating.
Once a data center is registered, the department must notify the relevant fuel suppliers, electric utilities, and water utilities, which are then required to report the amount of fuel, electricity, or water they supplied to the facility during each billing cycle. The department must compile those reports into monthly public reports on its website showing the most recently reported fuel and utility usage for each data center. The bill also authorizes the department to adopt rules to implement the program and establishes civil penalties and injunctive relief for noncompliance.
The bill would add a new part to Tennessee Code Annotated Title 65 and create new duties for data center owners/operators, the Department of Revenue, and utility providers. It overrides conflicting laws to require utilities and fuel suppliers to provide usage data to the department, and it makes that information publicly available through monthly online reports. It also gives the department enforcement authority through administrative penalties of up to $1,000 per day, capped at $25,000, and the ability to seek injunctive relief in Davidson County Chancery Court.
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears procedural and regulatory rather than overtly partisan. The bill is framed as a transparency and reporting measure for large data centers, with no recorded amendments, objections, or supportive testimony in the supplied context. Because there are no committee transcripts or vote records, there is no documented public split to assess.
The main likely points of contention are privacy, administrative burden, and public disclosure. Data center operators may object to mandatory registration, ongoing reporting obligations, and penalties for noncompliance, while utilities and fuel suppliers may object to being compelled to report customer-specific usage data notwithstanding other laws. Another possible concern is the bill’s requirement that the department publish monthly facility-level fuel, electricity, and water use online, which could raise confidentiality or competitive-advantage concerns. Supporters would likely emphasize transparency, resource planning, and oversight of large energy- and water-intensive facilities.