New report warns of rising electricity costs in TN as demand for data centers grow

A new report from ThinkTennessee highlights a sevenfold increase in data center electricity consumption in the Tennessee Valley region between 2020 and 2025, leading to rising residential electricity costs and grid reliability concerns. Tennessee now accounts for 16.7% of active data center construction in emerging markets, with households bearing the largest cost increases. Public opposition to data center development in Nashville has led to stricter local regulations.