Elon Musk’s xAI, pollution and data centers — what you need to know about a Tennessee bill
- by wpln
- Apr 05, 2026
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More: Tennessee has 60 data centers. Nashville probably has more than you think.
If recent data center developments in the state are any indicator — such as Elon Musk’s xAI facility in Memphis — the legislation might lead to more pollution near data centers.
“This bill would open the door to a massive influx of unregulated methane gas plants across the state,” said Trey Bussey, an attorney with the Southern Environmental Law Center.
The bill is scheduled to be heard Tuesday before the Tennessee Senate Commerce and Labor Committee.
How the bill works
The proposed legislation defines a data center as a building that requires at least 50 megawatts of power and primarily houses equipment to process, store or transmit digital information. Currently, most data centers in the region get electricity from a utility.
If the bill passes, data center companies could also
produce their own “behind-the-meter” power or buy electricity from an “independent power producer” without needing approval from a state regulator.
Courtesy Steve Helber/Associated Press
Workers install cables during construction of a Bitcoin data center in Virginia Beach, Va., Friday, Feb. 9, 2018.
Independent power producers are sometimes referred to as “emergent power plants.” These companies would not face regulatory oversight from the Tennessee Public Utility Commission, which has previously handled cases for such plants.
“The bill’s intent is to deregulate,” Bussey said.
While data centers have options, Bussey suggested that many companies may opt to generate electricity from gas turbines, a form of
fossil fuel infrastructure that burns methane
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