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The Tennessee Conservative [By Olivia Lupia] –
A new piece of legislation has been filed that would not only require artificial intelligence (AI) data centers to pay for their own infrastructure and improvements but also block local power companies from raising rates due to the additional strain these data centers place on the grid.
SB2128/HB1847 would require owners of data centers, both new and ones looking to expand, to pay for the “full cost” of any infrastructure needed to support the data center, including expansions or upgrades to utility infrastructure necessary to support the center itself and “continue providing the same services to the utility’s existing customers.”
The proposal would also block AI companies from distributing the costs for any upgrades, stating that any infrastructure agreements the center enters with a local government, the state, or a utility cannot allow “the cost of infrastructure to be paid for by an entity or individual other than the owner or operator of the data center.”
Additionally, the bill would create protections for utility ratepayers by ensuring electric companies could not raise rates charged to any residential, industrial, or commercial customers due to increased electric demand from a data center. And before imposing any future rate hikes, power companies would have to disclose a public report certifying the increase is not attributed to a data center.
If a customer believes an electric provider has violated the requirements, they can submit a complaint to the appropriate oversight board.
Competing legislation targeting AI data centers, SB1832/HB1461, has been introduced by Democrats which would place regulations on private businesses by requiring data center operators to “devote 50 percent of the computing and data processing output of the facility for a public benefit.”
The legislation defines “public benefit” as “a positive material effect or reduction in negative material effect on individuals, businesses, and communities in this state”, including in the arenas of society, academia and education, literacy, public health and benefits, culture, and the economy.
AI regulation is quickly becoming a central feature of this year’s legislative session, with several other AI-related bills making their way through the committee process as lawmakers weigh the balance of technological innovation and human protections.
SB2128 is sponsored by Sen. Brent Taylor (R-Memphis-District 31) and the House companion, HB1847 is carried by Rep. Ed Butler (R-Rickman-District 41).
Neither bill has been assigned to a committee yet, though that is likely due to the legislation’s filing coming in tandem with inclement weather that has shut down legislative activities for the past week.
Both bills will probably receive their assignments when the legislature reconvenes next week, especially as the Jan. 30 bill filing deadline is fast approaching.
About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
