Tennessee's aging utilties face challenges from growing technology, population base
Tennessee's aging utility infrastructure faces significant challenges from a growing population and increased electricity and water demands, particularly from large-scale data centers. Experts discussed the need for proactive municipal planning and efficient asset management to cope with projected surges in utility consumption across the state. Solutions like mini-nuclear sites for power and water utility regionalization were also explored.
Tennessee's utility infrastructure faces growing strain from a projected population increase to 9 million by 2050, alongside surging electricity and water demands from electric vehicles and large-scale data centers. During a workshop at the Tennessee Municipal League’s annual Conference and Expo in Kingsport, experts Jon Sparkman, director of engineering with Tennessee American Water, and Scott Stephens, vice president of business development with SiteLogiq, highlighted the critical need for municipalities to proactively manage these challenges.
The state currently hosts 63 data centers, but many larger facilities are expected, contributing to a projected 85% increase in Tennessee's electricity usage (195 TWh) over the next 25 years. Stephens anticipates that mini-nuclear sites may be necessary to power these new data centers due to current power generation limitations. Sparkman detailed the impact on water resources, distinguishing between closed-loop (recirculating) and open-loop (evaporative) cooling systems, noting that large data centers can consume millions of gallons daily. He emphasized the importance of balancing new demand with existing ratepayers and ensuring adequate source water capacity, particularly in areas like Chattanooga.
Both experts stressed the importance of robust asset management plans for utilities to track infrastructure condition, anticipate maintenance needs, and optimize efficiency. Sparkman warned about the financial risks if utilities over-invest for data centers that might not remain long-term, high-volume customers due to technological changes. The discussion also touched on the fragmentation of water utilities nationwide and how regionalization, as explored by the Tennessee Department of Environment and Conservation and the Comptroller's Office, could help manage aging infrastructure, new regulations (like those for PFAFS), and fluctuating populations more effectively.