Report: Tennessee Data Center Expansions Could Leave Lasting Electrical Impact - Memphis Flyer
Published on July 14, 2026.
A report by ThinkTennessee, a Nashville-based nonpartisan think tank, has warned that the expansion of data centers in Tennessee could significantly impact electricity demand. The report found that in communities with data centers, residential electricity bills rose even as commercial bills fell. These increases were exacerbated by a 12-percent rate increase for Memphis Light, Gas & Water (MLGW), implemented over three years, raising household bills by about $5 per month. Areas hosting data centers saw electricity bills rise 1.6 percent on average, between 2023 and 2024, compared to the statewide average of 1.3 percent. While this may be good for tech business in Tennessee, it comes with risks, including sudden disconnections from data centers that suddenly lower their electricity consumption could cause outages.
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