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HB 2456

Utilities, 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.

114th Regular Session (2025-2026) Introduced by Justin Pearson

Tennessee requires large data centers to register with the state and mandates utilities report their energy/water consumption and rates to increase public transparency on resource usage.

Action Def. in s/c Business and Utilities Subcommittee to 3/18/2026
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Bill Summary · HB 2456

Legislative bill overview

HB 2456 requires large data centers to register with Tennessee's Department of Revenue and mandates that fuel suppliers, electric utilities, and water utilities serving these facilities report their usage and rates to the state. The Department of Revenue Commissioner would then compile and publish this information for public access.

Why is this important

Data centers consume enormous amounts of electricity and water—resources with significant environmental and infrastructure implications. Public transparency about these consumption patterns and the rates paid could reveal whether large data centers receive preferential utility pricing, inform community planning around resource capacity, and enable policymakers to assess whether current tax and regulatory frameworks adequately account for their impact on local utilities and ratepayers.

Potential points of contention

  • Competitive concerns: Data centers may argue that publishing their usage and rates creates competitive disadvantages by exposing proprietary operational information and negotiated contracts to competitors
  • Regulatory burden: Utilities may resist additional reporting requirements as costly administrative overhead, potentially raising compliance costs that could be passed to other ratepayers
  • Definition scope: The bill's definition of "certain data centers" appears vague—unclear thresholds for what qualifies could create confusion and inconsistent application across the state

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

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