Tennessee

Data center activity in Tennessee

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Regulatory Environment Score
C
+5 pts

Tennessee's regulatory environment is dominated by extensive moratorium activity, with at least 111 moratoriums enacted and only 1 rejected, one of the most lopsided ratios in the country. Opposition has been notably effective, with at least 11 projects blocked compared to just 2 approved despite resistance. Zoning outcomes are modestly positive at 11 approvals versus 2 denials, but the volume is low relative to the state's size and the number of moratoriums in play. Unlike neighboring Kentucky, where moratorium counts are comparable but zoning approvals are more numerous and opposition outcomes more balanced, Tennessee's combination of near-universal moratorium adoption and effective project blocking creates a challenging development environment. The 69 active companies suggest that market interest persists, but developers face significant hurdles in moving projects forward.

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The EPA could make it harder to fight polluting data centers
News ClipAFRO News·Memphis, Shelby County, TN

The EPA could make it harder to fight polluting data centers$

The EPA is considering a proposal to eliminate federal requirements for public notice and comment periods on air pollution permits, which could make it harder for communities to oppose polluting data centers. This proposed change is highlighted by intense community opposition, including a lawsuit, against Elon Musk's data center project in Memphis, Tennessee, over environmental concerns. Opponents argue the proposal allows private deals against public interest, while the EPA claims it will streamline permitting.

9/8/2026
Memphis City Council approves ordinance to pause data center permits
News Clip5:40ABC24 Memphis·Memphis, Shelby County, TN

Memphis City Council approves ordinance to pause data center permits

The Memphis City Council approved a second reading of an ordinance to pause data center permits while the city studies long-term effects and establishes specific zoning definitions. Utility company MLGW is studying two potential projects but has not committed to serving them, with one potentially requiring 300 megawatts. Discussions surrounding the ordinance include concerns about water, air quality, economic benefits, and potential legal challenges.

9/6/2026
News ClipChattanoogan.com Breaking News·Cleveland, Bradley County, TN

Bradley County residents protest proposed data center and lumber operation

Residents in Bradley County, Tennessee, are protesting a proposed data center and lumber operation, known as "Project River," on over 800 acres of privately owned land near Cleveland. The project is currently in its visioning stage, sparking concerns about land consumption and scenic beauty versus economic development. Many residents are vocalizing their opposition to the development.

9/5/2026
News ClipMain Street Media of Tennessee·Lebanon, Wilson County, TN

Lebanon approves guidelines to limit data centers

The Lebanon City Council approved new zoning code amendments on September 1, establishing specific standards and conditions for future data center developments. These regulations, which include distance requirements, building limits, and noise thresholds, followed an earlier approval by the Lebanon Planning Commission. All applicants must now demonstrate compliance and provide utility approval letters.

9/4/2026
TVA says it's prepared for continued heat wave as electricity demand sets 2026 record
News ClipNews Channel 5 Nashville·Nashville, Davidson County, TN

TVA says it's prepared for continued heat wave as electricity demand sets 2026 record

The Tennessee Valley Authority (TVA) is prepared to meet record electricity demand during a heat wave, which surpassed levels seen in 2026. TVA officials addressed the dramatic increase in demand from AI data centers, which now account for over 10% of its total electric load. To address this, TVA is planning 6,200 megawatts of new power generation and implementing policies requiring data center developers to cover upfront infrastructure costs.

9/4/2026
Big Tech Launches Ad Campaign to Counter Opposition to AI Data Centers
News ClipCNET·Memphis, Shelby County, TN

Big Tech Launches Ad Campaign to Counter Opposition to AI Data Centers

A multimillion-dollar ad campaign named "Build American AI," backed by tech leaders and political action committees, is launching to counter growing public opposition to AI data centers. The campaign aims to reframe data centers as economic growth engines, targeting key election battleground states, following statements from former President Trump dismissing opposition. Public sentiment shows a significant majority of US adults oppose new data center builds due to concerns over energy and water consumption, environmental impact, and health.

9/2/2026
Sam Altman: 'People hate data centers—right now, at least. People are pretty negative on AI'
News ClipYahoo Tech·Memphis, Shelby County, TN

Sam Altman: 'People hate data centers—right now, at least. People are pretty negative on AI'

OpenAI CEO Sam Altman acknowledges public negativity towards data centers and AI, despite the company's plans for significant investment in compute infrastructure. The article cites examples of data center opposition, including a class-action lawsuit against Microsoft in Wisconsin and environmental concerns about an Elon Musk-backed data center in South Memphis, highlighting issues like noise, air quality, and rising power costs.

9/2/2026
Data Center moratorium ordinance passes second reading
News Clip0:29ABC24 Memphis·Memphis, Shelby County, TN

Data Center moratorium ordinance passes second reading

The Memphis City Council passed a data center moratorium ordinance on its second reading with a 10-0 vote. If passed in a final reading, this ordinance would pause data center development for up to one year, allowing city leaders to research impacts and regulations.

9/2/2026
Charlotte City Council enacts data center moratorium
News ClipMain Street Media of Tennessee·Charlotte, Dickson County, TN

Charlotte City Council enacts data center moratorium

The Charlotte City Council has passed a moratorium on data center development within city limits. This decision comes as Dickson County government is also working on standards for data center development. The mayor stated the move gives Charlotte more control over local development.

9/2/2026