HB 1847 / SB 2128 (Tennessee, 2026): data centers of 50 MW or more pay for their own electrical infrastructure; independent power producers may serve them

Public Chapter 961, signed by Gov. Bill Lee on May 7, 2026 (effective May 18, 2026). Adds T.C.A. title 7, chapter 70: "a municipality or electric utility shall not pay, or otherwise absorb, the cost of electrical infrastructure incurred to serve a data center" projected to draw 50 MW or more in its first three years, and defines independent power producers that may generate for and sell to data center owners outside the utility system. Sen. Brent Taylor, the Senate prime sponsor, described the bill as modelled on "the xAI way" of self-supplied generation in Memphis. House sponsor Rep. Ed Butler (with Barrett, Reneau, Howell, Hawk); Senate sponsor Taylor (with Walley, Yager, Bailey, Bowling, Crowe, Gardenhire, Lowe, Powers, Stevens). House passed as amended 76-14-1 on April 21, 2026; the Senate substituted HB 1847 for SB 2128 and passed it 28-0-2 on April 22, 2026, after Senate Commerce and Labor (9-0, April 7) and Senate Finance (10-1, April 21).

HB 1847