HB2463

Tennessee HB2463 amends the state's energy policy to promote clean energy use by data centers.

Tennessee HB2463 introduces the Bring Your Own Generation (BYOG) Act, which mandates that new data centers and artificial intelligence facilities with a peak load exceeding 100 megawatts must derive 50% of their electricity from clean energy sources. The state energy policy council will impose a clean energy transition surcharge on data centers with a peak demand of 100 megawatts or more, equal to the proportional costs of adding new clean energy resources to the grid. Fossil fuel power purchase agreements cannot qualify for state economic development incentives or reduced utility rates.