Tennessee officials want to introduce a bill that would require data center operators to shoulder any infrastructure and energy costs that could impact residents.
According to WHBQ, the bill, the Data Center, Artificial Intelligence, and Clean Transition Tariff Accountability Act, is sponsored by Memphis Sen. London Lamar and Rep. Karen Camper. The bill aims to protect Tennessee residents and local businesses from higher electricity rates caused by large, energy-intensive users.
"Large energy-intensive users" are defined as facilities that require a peak power demand of 25 megawatts or perform cloud computing, data processing, artificial intelligence training, or comparable operations.
Republicans have introduced a similar bill, Tennessee House Bill 1847. It also proposes that data centers and AI facilities must cover all costs for infrastructure expansion, upgrades, and energy support resulting from their operations.
Data centers consume large amounts of electricity and water. This drains the environment of crucial resources and strains the energy grid. Reports show that the country lacks grid capacity for this fast-paced AI boom.
Many communities are already frustrated by air and noise pollution and rising energy costs from data and AI operations. One report from Climate Power found that electric bills in the United States increased by 13% last year.
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Communities are pushing back, leading to the cancellation of numerous data center expansion plans. The new bill would allow more data center construction, expansion, and upgrades without placing a financial strain on residents.
The bill also includes an optional "clean transition tariff." This gives large users the opportunity to pay a premium rate that would support new, clean electricity generation and grid upgrades. Intensive energy users can fund a more sustainable grid and find favor with communities, creating a cleaner future for people and the planet.
Lamar told WHBQ: "If we're going to allow these companies to come in, we need to make sure they're paying their fair share, and they're not creating undue burden on the residents that are already here."
She added: "It needs to be the right bill that is going to protect consumers, residents, and small businesses. I want people to recognize this is not just a Memphis, Tennessee, problem. This is happening all around the country."
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