Press Mention WREG.com August 18, 2026
SACE Quoted
Mayor Young hopes for clarity on data centers, TVA rates at open session
In this mention
Memphis Mayor Paul Young advocates for responsible energy use and rate structures ahead of a TVA open session on data center expansion. Stephen Smith, executive director of the Southern Alliance for Clean Energy, expresses concerns about TVA's accountability mechanisms for large data centers and proposes an 18-month moratorium on new facilities to allow for greater transparency and citizen protections.
What we don't know is how TVA is holding these large loads accountable, make sure that the large load is going to be the ones paying for it, not you and I. It is the largest electric load growth that we've seen. There is a phenomenal amount of speculation in this market.
Stephen A. Smith
Full transcript
by: Olivia Yepez
Posted: Aug 19, 2026 / 10:11 PM CDT
Updated: Aug 19, 2026 / 10:11 PM CDT
MEMPHIS, Tenn. — Memphis Mayor Paul Young is advocating for responsible growth and energy use ahead of an open session hosted by the Tennessee Valley Authority, set for Thursday.
With the XAI Colossus data center in Memphis set to expand, and data centers across the country growing in number, the question is – how much? How much energy? How much money? And how much of that cost will fall on everyday people?
Mayor Young says he hopes rate changes proposed by the Tennessee Valley Authority will help keep those costs off of citizens.
In a statement, Young said, "AI and data center infrastructure are developing faster than many of the policies that govern them. If we get the guardrails right, this investment can strengthen our communities. If we do not, the very places that make that growth possible can be left to carry too much of the burden."
TVA's proposed rate change, which is set to be discussed in the upcoming open session, would put higher rates on large data centers and require them to commit upfront to generation capacity demands to fund transmission and connection.
But some are concerned about how the TVA plans to keep data centers accountable.
"What we don't know is how TVA is holding these large loads accountable, make sure that the large load is going to be the ones paying for it, not you and I, said Stephen Smith, executive director with Southern Alliance for Clean Energy. "It is the largest electric load growth that we've seen. There is a phenomenal amount of speculation in this market."
Smith hopes Tennessee will enact an 18-month moratorium on new large data centers as local governments work with data centers to create greater transparency and protections for citizens.
But some political leaders and members of the Chamber of Commerce believe a lengthy pause could lead artificial intelligence companies to seek out friendly pursuits and leave Memphis with only lost opportunity.
It's hoped details could become more clear after the upcoming listening sessions.