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HB 2392

Business 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.

114th Regular Session (2025-2026) Introduced by Michele Reneau

Creates Tennessee Data Center Impact Review Act to establish regulatory framework evaluating data center development's environmental, economic, and infrastructure effects statewide.

Taken off notice for cal in s/c Agriculture and Natural Resources Subcommittee of Agriculture & Natural Resources Committee
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Bill Summary · HB 2392

Legislative bill overview

HB 2392 creates the "Tennessee Data Center Impact Review Act," which establishes a framework for evaluating and potentially regulating data center development across Tennessee. The bill amends multiple titles of Tennessee Code, suggesting comprehensive changes affecting business operations, natural resources, taxation, and potentially land use and environmental considerations.

Why is this important

Data centers consume substantial electricity and water resources while generating significant economic activity and tax revenue. This legislation directly impacts whether and how Tennessee can balance attracting high-value technology investments against potential environmental and infrastructure strain, particularly in rural areas where data centers are often sited.

Potential points of contention

  • Environmental and resource concerns: Data centers require massive water and energy consumption, which may conflict with agricultural interests and environmental protections—evident from the Agriculture & Natural Resources Subcommittee routing
  • Tax incentives vs. public burden: Amendments to Title 68 (taxation) suggest potential tax breaks for data centers, raising questions about whether corporations should receive preferential treatment versus funding public services
  • Land use and zoning authority: Changes across multiple titles indicate potential conflicts between local control and state-level development standards, affecting how communities can restrict or encourage data center projects

Compiled from official sources — confirm details with the bill’s official record.

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