AI and Data Centers, Coming to a Property Near You?

The 4th Industrial Revolution is in full swing. In an article published by the World Economic Forum in 2016, “We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before. We do not yet know just how it will unfold, but one thing is clear: the response to it must be integrated and comprehensive, involving all stakeholders of the global polity, from the public and private sectors to academia and civil society.”

Gubernatorial candidate Marsha Blackburn, who Time Magazine recognized as one of the top 100 leaders in AI in 2025, is calling on Tennessee to become a leader in our nation in terms of developing our AI capabilities, including the required data centers needed to get us established in order to compete in the global market.

Tennessee is not new to the data center discussion. Governor Lee signed HB1847/SB2128 on May 7, 2026, which prohibits all data centers, which it defines as “Electronic equipment used to process, store, or transmit digital information” from putting the costs on local municipalities or electric utility companies, which would then add the costs to the consumers. 

Recently, Nashville locals raised concerns about a proposal to build a data center next to the zoo. After a petition of over 400,000 signatures was filed and a packed Nashville Metro Planning Commission meeting, the proposal has been stalled. Senator Blackburn posted a response on her social media account stating, “Let me be direct: Data centers are going to be a good and important part of Tennessee’s economic growth, but we’ve got to be thoughtful about their placement…Let’s revisit the placement of a data center beside the Nashville Zoo.”

If the consumers are being protected from paying for the data centers, who is putting up the money to produce and maintain them?

President Trump has been an advocate of the advancement of AI and data centers since getting elected. In March, the White House posted an article stating that “Under President Trump’s leadership, Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI signed the Ratepayer Protection Pledge, agreeing to build, bring, or buy new generation resources and cover the cost of all power delivery infrastructure upgrades required for their data centers, ensuring such expenses are not passed to American households.”

In addition to the world’s largest AI companies funneling money into Tennessee to produce these centers, individuals such as Jeff Yass, one of America’s billionaires and a financial supporter of TikTok, regularly donates to candidates and businesses who will continue to make building data centers a priority, including donating $1M to Senator Blackburn’s Team Tennessee PAC in February, the largest donor to date.

Tennessee also provides tax incentives for companies to build these data centers in our state.  According to the Tennessee Department of Revenue, data centers receive a “1.5% reduced sales tax rate for the purchase of electricity”, in addition to tax benefits for moving their global or national headquarters here.

The federal government is pushing for the expansion of data centers. Our US Senator and Gubernatorial candidate has promised to grow the footprint here in Tennessee if she’s elected, but what are the desires of the people?  

As of the writing of this article, at least 8 counties across Tennessee have put a moratorium on building more data centers until studies can be done on the impact they have on communities.  Those counties include Davidson, Knox, Coffee, Warren, Lawrence, Anderson, Wilson, and Robertson.

Data centers produce a constant sound between 80 to 95 decibels, which impact all neighboring communities. For reference, vacuum cleaners run around 70 decibels, at the highest healthy sound level for humans.

Data centers require millions of gallons of water every day, to keep the systems cool. Communities regularly complain that once a data center is built, their water levels are impacted, wells are damaged, and water coming into the home contains particles making it unsafe to drink.

Perhaps more impactful than the constant sound and residential water systems being impacted, is the government’s use of eminent domain to take private property from homeowners. In Georgia, Georgia Power is expanding their data centers and taking private property in order to do so. Through eminent domain, where companies who are contracted by the state government, such as Georgia Power, can offer property owners a “fair” compensation for their land in order to promote the “public good”. Because data centers are considered a necessary piece to push the United States into a more competitive global position, individuals are being forced to give up their land.

The “public good” is being prioritized over individual property rights.

The 5th Amendment of the Constitution does justify the use of taking property for the greater good, as long as the state government, or their contracted agency, provides “just compensation”. But who defines what “just” is?  Is there ever a “just” compensation for a childhood home that’s been kept in a family for generations?  In rural areas, eminent domain may just take a portion of someone’s large property, which will negatively impact the property value forever. The resale value of a property with a long line of electric poles running through it is greatly different than open land.

We have not seen eminent domain be used in Tennessee to build data centers, yet. But if we have a Governor elected who is paid by private donors to expand the data center footprint in our state, what stops them? If counties continue to push back on their development, will we see more aggressive measures taken in order to put Tennessee into the spotlight as being a leader in data center development? 

To be fair, let’s look at the other two candidates running for Governor and their position on data centers in Tennessee.

Representative Monty Fritts stated on a social media post on June 17th that “Data Centers are attacking Tennessee. This river, our clean air, our clean soil that we farm to feed our families in are important to Tennessee. It is important that we have a Governor who will stand up against those corporate and globalist establishments. It is important that we fight for our families and our farmers to be able to feed ourselves healthy food.”

Congressman John Rose stated on his X account two weeks ago, “Data centers shouldn’t be built in communities that can’t meet their own power needs first. I’ll lead with policies that don’t put Tennesseans in a position to compete with Silicon Valley for electricity.”

Tennesseans, we have a choice to make on August 6th. The reality is, if we are going to continue a dependence on the internet, data centers are necessary. But deciding where they will be built, considering our natural resources and private property, is crucial to the values we hold dear in Tennessee. We must choose a Governor who will help make that happen.

Use this data center map to see those that are closest to you.

 

 

Sources:

https://www.weforum.org/stories/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/

https://time.com/collections/time100-ai-2025/7305818/marsha-blackburn/

https://www.facebook.com/votemarshablackburn/posts/let-me-be-direct-data-centers-are-going-to-be-a-good-and-important-part-of-tenne/1568521961299300/

https://www.tn.gov/content/dam/tn/revenue/documents/taxpayer_education/sales/sales-tax-for-datacenters-headquarters-callcenters.pdf

https://apps.tn.gov/tncamp/search/pub/report_full.htm?reportId=124865

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