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Lawmakers pass data‑center guardrails after floor debate over ratepayer protections

April 21, 2026 | 2026 Legislature TN, Tennessee


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Lawmakers pass data‑center guardrails after floor debate over ratepayer protections
Representative Butler carried HB 1847, which he described as a bill that “puts some guardrails around data centers to protect consumers.” Butler said the measure, as amended on the floor, seeks to balance industry investment and consumer safeguards and renewed his motion for passage.

Representative Pearson challenged the changes adopted in committee and on the floor, arguing the bill as amended had strayed from its original intent. Pearson said the bill now applies only to the largest facilities and contains exceptions that allow utilities to bill residents for infrastructure built to serve private data centers. “This amendment makes a general statement about protecting residents, but has several exceptions…allowing local power companies to reimburse data centers for infrastructure cost,” Pearson said, warning the measure could shift costs to constituents and provide insufficient transparency.

Butler responded on the floor that the current amendment sets a 50‑megawatt threshold and that the bill provides safeguards for ratepayers. After extended discussion over thresholds, utility authority and transparency, the House voted to pass HB 1847 as amended.

Next steps: the bill passed third reading in the House and will proceed in the legislative process toward the Senate or, if the Senate language is already conforming, toward enrollment for the governor’s consideration.

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