New TN law aims to protect utility customers from higher bills due to data centers

A new Tennessee law aimed at protecting utility customers from the growing energy demands of data centers will take effect in July. The legislation comes as more and more data centers look to set up cyber operations across the state. Under the new law, data centers must pay for any new infrastructure required to support their operations, including substations and other power-related upgrades. Utilities are also prohibited from passing those costs on to residential and business customers. The new law also allows utilities to establish a separate customer or rate class specifically for data centers which will provide an additional safeguard against shifting costs to other customers. State lawmakers say the goal is to ensure Tennessee stays competitive, while families and businesses do not see higher electric bills because of data center expansion.