
AI Leads Data Center Growth, TN Water Avail Leads To Interest
News ClipThe UC Now·Cumberland County, TN·4/26/2026
Data center developers are reportedly showing interest in Tennessee's Upper Cumberland region due to its abundant water availability, which is crucial for cooling. A Tennessee Tech expert highlighted that artificial intelligence is driving roughly 90 percent of new data center creation nationwide. These facilities offer significant economic development and job creation potential for localities.
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Reports indicate that data center developers are eyeing the Upper Cumberland region of Tennessee, a trend attributed to the burgeoning artificial intelligence sector. Dr. Anthony Skjellum, a Computer Science Professor at Tennessee Tech, noted that AI is responsible for approximately 90 percent of current data center development. He explained that these optimized computing spaces, now often called "AI factories," are essential for running large language models like Grok and ChatGPT, which automate tasks and process information efficiently.
Skjellum emphasized that these large-scale data centers require substantial amounts of water and electricity. Tennessee's ample water resources offer an economical solution for evaporative cooling, which helps dissipate the excess heat generated by numerous servers. Beyond the technical requirements, Skjellum highlighted the significant economic benefits, estimating that a new data center can generate 50 to 150 well-paying jobs, thereby boosting an area's economic development and local revenue.