Tennessee Chamber Sets Data Center Principles

NASHVILLE, Tenn. — The state largest business lobby has drawn up its wish list for how Tennessee should handle the wave of data center projects, and it asks the industry to cover the cost of its own power hookups while warning governments not to single it out for extra rules.

The Tennessee Chamber of Commerce and Industry released what it calls its Digital Infrastructure Guiding Policy Principles on Wednesday, Nov. 11. The group said the framework will shape its talks with members, local leaders and state lawmakers going into the 2027 legislative session.

Electricity is at the center of the document. The Chamber says data centers should pay for the electric infrastructure needed to serve them so households and other businesses do not end up absorbing that bill. It also argues that new demand from the facilities should be paired with new power plants and grid upgrades that add real capacity, rather than just pulling more from the existing system.

Water gets its own section. The group wants operators to lean on closed-loop cooling, water reuse and other efficient systems that cut down on how much fresh water they draw.

On the neighbor side, the principles call for projects to respect nearby property owners through steps such as building setbacks, limits on noise and light, road improvements and coordination with emergency responders.

The business group also made a case for the industry. It wants permitting that is clear and predictable, says these projects should bring jobs and a bigger tax base, and says local and state agencies should not hold data centers to tougher rules than other economic development projects of a similar kind.

Chamber president and CEO Josh Brown said in the release that members across many industries are affected by digital infrastructure growth, and that the principles aim to balance the economic upside with the concerns of businesses and communities as the group works with legislators and local officials.

Filed under: Nashville TN Business News