Image Credit: TN General Assembly
The Tennessee Conservative [By Olivia Lupia] –
As artificial intelligence (AI) remains a key focus of this year’s legislative session, one bill requiring data centers to pay for their own infrastructure or improvements and blocking power companies from unjustly raising rates has passed a House subcommittee and will move forward to additional House and Senate committees.
HB1847 by Rep. Ed Butler (R-Rickman-District 41) would require data center owners to pay the “full cost” of any infrastructure needed to support or expand the data center, including 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 expansion or upgrade projects by specifically stating that the cost of infrastructure cannot 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.
In the House Business & Utilities Subcommittee, Rep. Butler reiterated the intent of the bill is to promote growing business but still protect utility ratepayers. “In Tennessee, we love data centers, we want to have data centers, but we want to put guardrails around that to protect our ratepayers, and that’s the ultimate objective around this piece of legislation,” he said.
After adding an amendment which did not significantly alter the intent of the bill, it received a unanimous 7-0 vote in favor.
The bill will now move to the full House Commerce Committee on Wednesday, March 11. The Senate companion, SB2128, is scheduled for the Senate Commerce and Labor Committee also on Wednesday, March 11. To contact members of either committee about this bill, use the information below:
House Commerce Committee– HB1847 to be heard on March 11
HB1847 requires AI data centers to self-fund so as not to add additional strain to local utility providers
Rep.kevin.vaughan@capitol.tn.gov, rep.rush.bricken@capitol.tn.gov, rep.clark.boyd@capitol.tn.gov, rep.shaundelle.brooks@capitol.tn.gov, rep.karen.camper@capitol.tn.gov, rep.john.ray.clemmons@capitol.tn.gov, rep.mark.cochran@capitol.tn.gov, rep.tandy.darby@capitol.tn.gov, rep.jeremy.faison@capitol.tn.gov, rep.rusty.grills@capitol.tn.gov; rep.michael.hale@capitol.tn.gov, rep.ga.hardaway@capitol.tn.gov, rep.kirk.haston@capitol.tn.gov, rep.caleb.hemmer@capitol.tn.gov, rep.kelly.keisling@capitol.tn.gov, rep.justin.lafferty@capitol.tn.gov, rep.michael.lankford@capitol.tn.gov; rep.susan.lynn@capitol.tn.gov, rep.pat.marsh@capitol.tn.gov, rep.brock.martin@capitol.tn.gov, rep.jerome.moon@capitol.tn.gov, rep.dennis.powers@capitol.tn.gov; rep.greg.vital@capitol.tn.gov, rep.jason.zachary@capitol.tn.gov
Senate Commerce and Labor Committee– SB2128 to be heard on March 11
SB2128 requires AI data centers to self-fund so as not to add additional strain to local utility providers
Sen.paul.bailey@capitol.tn.gov; sen.brent.taylor@capitol.tn.gov; sen.steve.southerland@capitol.tn.gov; sen.raumesh.akbari@capitol.tn.gov; sen.jack.johnson@capitol.tn.gov; sen.shane.reeves@capitol.tn.gov; sen.john.stevens@capitol.tn.gov; sen.bo.watson@capitol.tn.gov; sen.ken.yager@capitol.tn.gov
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.
