SB 2112

Beginning January 1, 2027, this bill prohibits a person from operating a data center in this state unless it is registered with the department of revenue ("department""). As used in such prohibition, a ""data center"" means a privately owned and operated physical facility housing computer servers, storage, and networking equipment to store, process, and distribute data and applications, and that has a power capacity of more than 20 megawatts. REGISTRATION REQUIREMENTS To register as a data center, this bill requires the owner or operator of the center to provide (i) the data center's physical address; (ii) the name, mailing address, telephone number, and email address of the person having responsible charge for the da ta center's operation; (iii) an approximation of the data center's power capacity; (iv) the name of each electric utility and water utility that provides service to the data center; (v) the name of each supplier of fuel supplied to the data center to prov id e backup power; and (vi) any additional information required by the department by rule. Any change in information must be provided to the commissioner of revenue (""commissioner"") within 30 days. UTILITY REPORTING REQUIREMENTS This bill requires the department to notify each fuel supplier, electric utility, and water utility providing service to the data center that the suppliers to report the amount of resource that it provided to the data center during the preceding billing period. Reports must be provided within 30 days of the end of each relevant billing cycle. The owner or operator of a data facility must notify the commissioner within 30 days of ceasing operations. The department must notify each fuel supplier, electr ic utility, and water utility that their reporting obligations will cease following the final billing cycle. This bill also requires the department to compile the utility reports into monthly reports that clearly state the most recently reported fuel supplied, and the electricity and water use of each data center. This bill directs the department to publish an d maintain the reports on its website. CIVIL PENALTIES If the owner or operator of a data center does not properly register with the department, this bill allows the department to assess a civil penalty of $1, 000 or less per day, up to a maximum of $25, 000. Further, the commissioner may seek injunctive reli ef to prevent the owner or operator of a data center from continuing to violate this registration requirement in the chancery court of Davidson C ounty. RULEMAKING This bill authorizes the department to promulgate rules to effectuate this bill."