Tennessee Data Center News

Mar 15, 2026

AI data centres face backlash from Mayors in US cities over power use, pollution fears

Mayors in major US cities are challenging tech companies over data centre energy demands and local pollution impacts.

Main action: Mayors (including Tim Kelly of Chattanooga, Kate Gallego of Phoenix and Larry Klein of Sunnyvale) are publicly pressuring big tech over the environmental and infrastructure costs of AI data centres — citing strained power grids, water supply depletion, and local pollution. The White House also convened big tech this month to demand companies bear the cost of powering new data centres. Key project details: xAI is reported to be running at least 18 methane gas turbines at its South Memphis site; Mississippi regulators approved generators despite local resistance; APS warned that approving all proposed data centres would push electricity demand to 19,000 megawatts (more than double the grid’s record peak).
Background and other details: The discussion surfaced at SXSW in Austin, Texas where mayors raised concerns about non-disclosure agreements that keep communities uninformed until late in the process and contrasted more transparent operators (Microsoft, Google) with less transparent firms. Phoenix is highlighted as a magnet for data centres due to tax incentives and low regulation. Reporting sources include AFP and an NBC News poll showing public skepticism about AI.

Mar 12, 2026

Valley Data Center to be Acquired with Plans for Major Expansion

RadiusDC has announced a definitive agreement to acquire phoenixNAP’s Phoenix, Arizona data center and colocation business, with closing expected in Q2 2026.

Acquisition details: RadiusDC will acquire the existing Phoenix colocation facility, interconnection infrastructure, and development rights; upon closing RadiusDC will expand DC1 to 8 megawatts of IT power and develop DC2 to add up to 18 megawatts, with initial DC2 phases expected online beginning first half of 2028, positioning the Phoenix I campus to scale to approximately 26 megawatts of total critical IT power capacity; closing is subject to customary closing conditions and regulatory approvals.
Background & advisors: Approximately 80% of phoenixNAP’s global business will remain independently owned and operated by phoenixNAP, which will remain a tenant in the Phoenix facility; financial and legal advisors include J.P. Morgan (financial advisor to RadiusDC), BofA Securities (exclusive financial advisor to phoenixNAP), Gibson Dunn & Crutcher LLP, Snell & Wilmer LLP, and Cleary Gottlieb Steen & Hamilton LLP.

Mar 12, 2026

Fossil generation could rise with faster-than-expected growth in data center power demand

The U.S. Energy Information Administration (EIA) published an analysis showing that faster-than-expected electricity demand growth driven by data centers could increase natural gas and coal generation and raise wholesale electricity prices.

Main analysis and assumptions: The EIA produced a high demand growth scenario in which 2026 and 2027 growth rates are 50% higher than the February STEO in data-center-heavy regions, while other regions are +1 percentage point above STEO; the scenario assumes no additional generating capacity beyond the February STEO and applies an assumed +$0.50/MMBtu increase in natural gas delivered prices across regions.
Key modeled outcomes and metrics: Under the scenario, natural gas generation rises to +7.3% (123 BkWh) between 2025–2027 (vs 1.7% baseline), coal generation declines by 5.0% (37 BkWh) nationwide in the high case, and ERCOT 2027 wholesale prices model +$37/MWh above the February STEO (excluding ERCOT the average 2027 wholesale price is +$2.10/MWh above the STEO forecast of $48/MWh).

Mar 10, 2026

Microgrid research partnership celebrates milestone toward enhanced grid resilience

Oak Ridge National Laboratory (ORNL) and EPB of Chattanooga announced a DOE-supported demonstration of an advanced microgrid control platform, with testing at ORNL’s GRID-C and planned demonstration in EPB’s microgrids next year.

Main action: ORNL-developed advanced microgrid control platform with dynamic boundaries and nested microgrids is being tested at GRID-C and will be demonstrated in EPB’s microgrids next year; the project celebrated installation of microgrid equipment at an event marking a milestone on Monday.
Key details & background: Partnership expanded EPB’s system by adding almost 58 megawatt hours (MWh) of energy storage across a fleet of five microgrids at two sites, which can provide backup power to more than a thousand residential customers and critical facilities; ORNL and EPB have partnered for more than a decade and the work ties into ORNL’s Next-Generation Data Centers Institute and DOE’s Genesis Mission.

Mar 6, 2026

AI Infrastructure Brief: Power, Capital, and Silicon Collide in the Next Phase of the Data Center Buildout

Data Center Frontier summarizes multiple AI infrastructure announcements and projects scaling to gigawatts across North America.

Main announcement/action: The article reports an industry-wide acceleration of hyperscale AI data center development, including CoreWeave’s plan to add roughly 5 GW of capacity by 2030, xAI’s $659 million permit filing for Memphis “Colossus,” Nebius’s $150.6 billion Chapter 100 bond approval, and a $2.4 billion B&W/Base Electron design-build agreement to deliver 1.2 GW of natural-gas generation to supply Applied Digital AI campuses; it also cites La Caisse’s C$240 million commitment to Cologix’s MTL8 and Google’s $40 billion investment pipeline in Texas through 2027.
Context and additional details: The report documents wider trends: institutional capital flows (Blackstone exploring a public data-center vehicle; HighBrook targeting 300 MW), growth in dedicated/behind-the-meter generation (the “power island” trend), and rising political and community scrutiny (Birmingham 180-day moratorium, Oregon HB 4084 proposal, project withdrawals/controversies in Apex NC and West Louisville).

Mar 5, 2026

Hyperscalers Sign White House Pledge to Fund Data Center Power, Grid Upgrades

The White House convened seven major AI/hyperscaler companies on March 4 to sign the non‑regulatory Ratepayer Protection Pledge committing to fund new generation capacity and pay for required grid upgrades so costs are not passed to residential or commercial ratepayers.

Main announcement (signatories & commitments): The pledge was signed on March 4, 2026 by Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI, committing to build, bring, or buy new generation resources and cover the cost of all power delivery infrastructure upgrades required for their data centers; companies also agree to pay for contracted power and infrastructure whether or not they ultimately consume the electricity. The White House framed the effort as a policy response to AI-driven load growth and stated companies will negotiate separate rate structures with utilities and state governments to isolate costs from existing ratepayers.
Background & implementation details: The article cites EPRI projections (U.S. data center demand ~177–192 TWh in 2024, rising to 9–17% of national demand by 2030, up to 793 TWh in a high scenario). It documents specific company actions and figures: Google >7,800 MW contracted in Texas and a $4.75 billion Intersect Power acquisition pending; Microsoft contracted 7.9 GW in MISO; Amazon-related deals cited ~$1 billion projected customer savings (Indiana) and a $300 million Entergy transformation (Mississippi); OpenAI’s Stargate aims for 10 GW U.S. AI compute by 2029 and committed $175 million for local infrastructure in Wisconsin. The notes also record that the pledge is non‑binding and the White House disclosure does not specify independent auditing, penalties, or a defined enforcement methodology.

Feb 27, 2026 · RMI

Why Communities Can and Must Consider Electricity Affordability and Risk Together

Stephen Abbott of RMI argues that communities should consider electricity affordability and risk together and pursue diverse, distributed energy portfolios rather than relying solely on large centralized fossil-fuel generation.

Main announcement/action: Communities and local governments should adopt portfolio-based energy strategies (energy efficiency, batteries, renewables, virtual power plants, and other flexible resources) to reduce price volatility and operational risk; RMI highlights concrete examples including data center-driven load growth of 32% by 2030, and Burlington’s 59,204 MWh annual reduction from its energy efficiency program.
Background and details: The piece cites recent cost and risk evidence: ComEd provided $277 million (2024) for efficiency programs yielding an estimated $3.2 billion in customer savings; reliance on fossil fuels produced at least $390 million in excess costs for communities around the Prairie State Energy Campus over four years; typical monthly fuel charges in Florida doubled from ~$20 to ~$40 (2020–2023); utilities such as TVA are proposing large new gas facilities as a conventional response.

Feb 27, 2026

Data centers remain standout industry for Schneider Electric

Schneider Electric reported full-year 2025 results showing continued growth driven by AI data center demand and announced a new five-year sustainability ambition.

Main announcement/action: Schneider reported 8.9% organic revenue growth in 2025 with data centers and networks the largest end-market (accounting for 30% of orders in 2025); the company projects the data center and networks vertical to grow by >10% annually through 2030 and said data center orders accelerated toward the end of 2025 and are expected to remain strong through 2026 as projects planned for the next 18–24 months take shape.
Background and other details: Schneider highlighted 11.2% Q4 organic growth in Energy Management, North America growth of 15% year-over-year, use of ETAP and NVIDIA Omniverse in design, the Motivair acquisition for high-performance cooling, a new manufacturing facility in Tennessee to produce custom power distribution equipment, and a five-year sustainability ambition to save/electrify 1,500 TWh (2026–2030) and avoid 1.5 billion tons CO2 (2018–2030).

Feb 25, 2026

Oak Ridge National Laboratory launches the Next-Generation Data Centers Institute

Oak Ridge National Laboratory (ORNL) has announced the launch of the Next Generation Data Centers Institute (NGDCI) to develop technologies that make AI data centers more efficient, reliable, secure, and integrated with the U.S. energy system.

Main announcement: NGDCI will coordinate ORNL’s energy science, computing, and national security strengths (including MEGA-DC, OLCF, campus microgrid and GRID-C testbeds) to research six priority areas: thermal management, power system architecture, grid integration, operations and load management, security, and integrated systems modeling. The Oak Ridge Reservation has been selected by DOE as a site to advance large-scale AI data center and energy generation projects, and NGDCI will support deployment of ORNL systems Discovery and Lux.
Background and partners: The article cites rising demand (data centers >4% of U.S. electricity use; AI-driven growth could reach 17% by 2030 per EPRI) and a McKinsey estimate of $7 trillion global data center infrastructure spending by 2030 (with >40% in the U.S.). Industry collaborators explicitly named include AMD, Carrier Energy, Chemours, and NVIDIA, and the effort aligns with DOE’s Genesis Mission. UT-Battelle manages ORNL for DOE.

Feb 25, 2026

Romania’s Coal-to-NuScale SMR Conversion Secures FID, Moves Into Implementation With Caveats

Nuclearelectrica has approved a final investment decision (FID) for a 462‑MWe six‑module NuScale VOYGR‑6 SMR at the former Doicești coal plant, moving the project from analysis into Stage 3 development.

Main announcement: Nuclearelectrica shareholders approved an FID for a 462‑MWe (6×77‑MWe) NuScale VOYGR‑6 SMR at Doicești; the FID is contingent on multiple mandatory conditions (listed in RoPower and Nuclearelectrica annexes) that remain under an eight‑year confidentiality agreement. RoPower (50/50 S.N. Nuclearelectrica S.A. / Nova Power & Gas S.A.) must complete geotechnical investigations, advance licensing, finalize a pre‑EPC contract, negotiate long‑lead equipment, define supply chains, and prepare organization for pre‑EPC/EPC by May 2026, and Stage 3 (pre‑EPC) is expected to last about 15 months to produce a Class 2 cost estimate and contractor shortlist.
Background and specifics: The Doicești brownfield was a decommissioned 600‑MW coal station where Nova Power & Gas removed ~600,000 tonnes of material and refurbished site infrastructure including a ~650‑MW grid connection and water access; parallel national nuclear work includes Cernavoda Unit 1 refurbishment (contract ~C$781 million for tooling; Unit 1 investment estimate €1.85 billion) and planning for Units 3 & 4 (estimated €7 billion, with U.S. EXIM letters of interest up to $50 million and up to $3 billion). The FID announcement signals advancing commercial, engineering (NuScale and Fluor FEED), and US government‑backed support (USTDA, EXIM) but remains explicitly conditional on the confidential requirements.

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