Tennessee data centers raise questions over tax breaks, loss of revenue to state # Tennessee data centers raise questions over tax breaks, loss of revenue to state by Karen Aguilar Tue, September 8, 2026 at 12:45 PM 3 VIEW ALL PHOTOS Meta data centers operate, Saturday, Sept.
fox17.com · September 8, 2026
Tennessee data centers raise questions over tax breaks, loss of revenue to state
# Tennessee data centers raise questions over tax breaks, loss of revenue to state
by Karen Aguilar
Tue, September 8, 2026 at 12:45 PM
3 VIEW ALL PHOTOS
Meta data centers operate, Saturday, Sept. 5, 2026, near Social Circle, Ga. Tennessee State Rep. Aftyn Behn suggests a bill to pause new data center tax exemptions and require reporting on their costs to taxpayer and compliance. (AP Photo/Mike Stewart)
NASHVILLE, Tenn. (WZTV) — Tennessee State Rep. Aftyn Behn suggests a bill to pause new data center tax exemptions and require reporting on their costs to taxpayer and compliance.
This as many have spoken out against data centers, including the one proposed to be built to the Nashville Zoo.
The "Blank Check to Data Centers Act" Behn plans to file would temporarily stop the tax breaks for three years while the Department of Revenue can actually track the cost.
It aims to address the alleged lack of transparency around the financial impact of data centers in Tennessee, accusing current state agencies of not tracking or disclosing the revenue lost or grants given to these facilities.
Behn said the proposal follows research highlighting the rapid growth of data centers and the uncertainty about their true cost to taxpayers.
According to Behn, DOR and Tennessee Department of Economic and Community Development confirmed that there are 25 active exemption certificates statewide and it does not track how much revenue it has lost, or said how many grants have been given to data centers.
FOX 17 News asked DOR these questions:
1. How many data centers in Tennessee are currently getting a tax break? 2. Is the number 25, and does that mean 25 data centers or 25 companies? 3. How much money is Tennessee giving up each year because of these tax breaks? 4. If the state doesn’t know the total cost, why not?
FOX 17 News also asked the TNECD these questions:
1. How many data center projects has TNECD provided incentives or grants to in Tennessee? 2. How much in total has TNECD awarded to data center projects? 3. How does TNECD determine whether incentives for a data center provide a positive return to the state, and what does it consider when calculating that return?
FOX 17 News is waiting to hear back from the state agencies, plans to speak to Rep. Behn and is looking for another lawmaker or even advocate of data centers. Check back as we continue to update this story.