OpenAI, Anthropic and other artificial intelligence companies hire Tennessee lobbyists
Leading AI companies, including OpenAI and Anthropic, have hired lobbyists in Tennessee to counter a growing backlash against data centers. This move comes as local communities are imposing moratoriums due to concerns about electricity prices and environmental impacts, and a state representative has called for pausing data center tax breaks.
America's leading artificial intelligence companies, including OpenAI and Anthropic, have initiated lobbying efforts in Tennessee this year. This move is a direct response to increasing public backlash against data center expansion, which local communities attribute to rising electricity costs and environmental concerns. The Data Center Coalition and AI venture capital firm Andreessen Horowitz are also among the 11 companies newly contracting with lobbyists for the 2026 legislative session. These new lobbying efforts join existing ones from companies like Amazon, Google, Meta, Oracle, Axon Enterprises, and Flock Safety, many of whom have significant AI and data center investments in the state.
Brendan Glavin of OpenSecrets, a political spending tracker, suggests that while AI regulation might be a factor, the primary focus of the lobbying is likely to counter the burgeoning "anti-data center movement" at the state level. Tennessee has become a hub for tech investment, with Google opening a data center in Clarksville in 2019, Meta in Gallatin in 2024, and SpaceXAI in Memphis in the same year. Amazon also established a second headquarters in Nashville in 2023, with Oracle planning a campus there.
State Representative Aftyn Behn, a Nashville Democrat, has publicly called for a halt to Tennessee's tax breaks for data centers. The state currently offers substantial incentives, including sales tax exemptions on data processing services, which the Department of Finance and Administration estimates will save companies nearly $110 million in 2026-27. The lobbying is intended to protect these incentives and facilitate continued data center development amidst legislative scrutiny and public opposition.