Guiding Principles to Strengthen State’s Digital Infrastructure
The Tennessee Chamber of Commerce & Industry released its Digital Infrastructure Guiding Policy Principles, a framework to help Tennessee become a national leader in digital infrastructure while supporting a reliable, affordable energy system; protecting communities and natural resources; and strengthening the state’s long-term economic competitiveness.
Digital infrastructure, including data centers, supports innovation across nearly every sector of Tennessee’s economy, from manufacturing and health care to finance, logistics, education and technology. The principles outline how the state can attract that investment in a way that works for employers, utilities, local governments and the communities that host new projects.
The principles will guide the Tennessee Chamber’s work with its members, local community leaders and state lawmakers as they prepare for the 2027 legislative session.
The Digital Infrastructure Guiding Policy Principles:
- Promote Predictable and Collaborative Development. Tennessee should keep a clear, predictable, and efficient regulatory and permitting environment that provides certainty for investment and protects the property rights of both developers and others in the community while ensuring appropriate planning, transparency, and accountability. Developers should work collaboratively with utilities, state and local governments, economic development organizations, and communities to identify infrastructure needs and address potential impacts.
- Support Responsible Growth and Investment. Digital infrastructure investment should create jobs, expand the tax base, strengthen communities, and support Tennessee’s position as a leader in innovation and economic development. At the same time, government entities should not place more onerous regulatory or policy constraints on digital infrastructure investments than on other similar economic development projects.
- Protect Energy Reliability and Affordability. The growth of digital infrastructure must be supported by thoughtful planning and investment to maintain a reliable and affordable energy system for Tennessee families, small businesses, and employers. Data centers should bear the costs of the electric infrastructure required to serve their operations to ensure that Tennessee businesses and families are not burdened by those costs.
- Add Energy Capacity Alongside Demand. Data center growth should be matched by investments in new electric generation and infrastructure that add capacity to Tennessee’s energy system, not simply increase demand.
- Protect Tennessee’s Water Resources. Data centers should responsibly manage water use by prioritizing water-efficient technologies, including closed-loop and water-reuse systems, efficient cooling technologies, and other best practices that minimize freshwater consumption.
- Protect Communities and Quality of Life. Digital infrastructure development should respect surrounding communities and property owners. Data centers should minimize impacts through appropriate measures such as setbacks, noise and light mitigation, traffic improvements, emergency response coordination, and other community protections.
- Support an Environment for Innovation and Competition. Tennessee should support sound policies that encourage investment and innovation, providing economic opportunities for all Tennesseans and ensuring the state is positioned as a national leader in emerging technologies.
“The Tennessee Chamber represents businesses across a wide range of industries that are directly impacted by the growth of digital infrastructure in our state,” said Josh Brown, president and CEO of the Tennessee Chamber of Commerce & Industry. “We felt it was important to establish guiding principles that recognize the economic opportunities this industry brings while also addressing the concerns of our members and communities. These principles will help guide our work with local chambers, business leaders and members of the General Assembly as we work toward policies that support responsible investment and keep Tennessee competitive.”
The full Digital Infrastructure Guiding Policy Principles are available HERE.