How many data centers are in TN? Behind the controversial sites
News ClipThe Tennessean·TN·4/23/2026
Tennessee is experiencing a surge in data center development, prompting statewide discussions about their impact on electricity, water, and real estate. Concerns are rising among residents and officials, leading to proposed legislation aimed at addressing infrastructure costs.
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Gov: Tennessee Valley Authority, Tennessee state legislature
Tennessee is emerging as a significant hub for data centers, a trend expected to intensify in the coming years despite growing criticism from residents and officials. Concerns revolve around increased electric bills, strain on water supplies, environmental impact on air quality, and the conversion of residential and agricultural land.
The state already hosts approximately 60 data centers across 10 markets, with Nashville, Memphis, and Knoxville accounting for 80% of these facilities. Nashville is the largest market with 25 data centers, including those operated by Lumen and Flexential, while Meta operates seven in Gallatin. Memphis has 13 data centers, three of which belong to Elon Musk's xAI, and Google maintains a facility in Clarksville.
The Tennessee Valley Authority (TVA) forecasts a doubling of data center demand by 2030, which constituted 18% of the industrial load in 2025. In response to this growth and associated costs, HB1847 is currently advancing through the state legislature. This bill seeks to mandate that data center developers bear the full infrastructure and electricity expenses for their facilities, preventing utility companies from passing these costs onto residential and other customers.