Costs of data center energy study released
New research by Think Tennessee highlights the substantial energy usage of data centers in the state, potentially increasing energy bills. In response, both Knoxville City Council and Knox County have enacted one-year moratoriums on data center development to allow time for adapting zoning rules and developing new regulations.
A new study from Think Tennessee has revealed the significant energy consumption of data centers across the state, projecting potential increases in residents' energy bills. The research indicates that power usage in Tennessee by data centers in 2025 was seven times higher than in 2020, reaching 9 million megawatts per hour, an amount sufficient to power approximately 750,000 to 1 million average U.S. homes for a year. If planned, operational, and under-construction data centers are combined, they would require enough power to light 1.3 million Tennessee homes annually.
In response to the rapid growth, the Knoxville City Council recently approved a one-year pause on data center development. Mayor India Kincannon stated this moratorium would provide the city with time to adjust its zoning rules. Following this decision, the Knoxville Planning Commission is tasked with developing recommendations for new regulations and safeguards concerning data centers.
Concurrently, Knox County also passed its own one-year moratorium on data center development at the end of June, mirroring Knoxville's efforts to manage the impact of the expanding industry.