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HB 1847

Computers and Electronic Processing - As introduced, requires the owner or operator of a data center to pay for the full cost of infrastructure needed to support the data center; requires an electric utility to ensure that the cost of infrastructure needed to support the provision of electric services to the data center is paid solely by the owner or operator of the data center; makes other changes related to data centers. - Amends TCA Title 5; Title 6; Title 7; Title 13 and Title 65.

114th Regular Session (2025-2026) Introduced by Ed Butler

Tennessee law makes data center operators pay 100% of infrastructure costs utilities incur serving them, shifting expenses from ratepayers to data centers.

Received from House, Passed on First Consideration
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WeVote Research Nonpartisan
Bill Summary · HB 1847

Legislative bill overview

HB 1847 requires data center owners and operators to bear the full cost of infrastructure needed to support their facilities, including all electric utility infrastructure expansion. The bill amends multiple sections of Tennessee law governing utilities, businesses, and local government to shift infrastructure costs entirely to the data center operator rather than spreading them across utility ratepayers or municipalities.

Why is this important

Data centers require significant electrical capacity and physical infrastructure. Currently, utilities typically recover such costs through rates paid by all customers. This bill would isolate costs to individual data centers, potentially affecting how utilities finance expansions, electricity rates for other consumers, and the financial incentives for data center development in Tennessee.

Potential points of contention

  • Utility cost recovery impact: Preventing utilities from spreading data center infrastructure costs across their general ratepayer base could increase costs for other customers or reduce utility revenue needed for system maintenance and improvements
  • Economic development tradeoff: Requiring data centers to fund 100% of infrastructure costs may discourage facility investment in Tennessee compared to other states with more favorable cost structures, potentially offsetting job creation benefits
  • Definition ambiguity: The bill's language about "infrastructure needed to support" may create disputes over which costs qualify—such as grid upgrades, substations, transmission lines, or broader system improvements—leading to litigation and regulatory uncertainty

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

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