(The Center Square) – An announcement of an $11.3 billion industrial campus in southeast Tennessee’s Bradley County renewed the debate about data centers, even though no data center has committed to building on the site.
What is included in Project River, a private 850-acre development by the owners and developers of Wright Brothers Construction, is a power plant that will use a combination of biomass from the forest and natural gas, according to information provided by the developers. It will provide up to 1,500 megawatts of power and will only need electricity from the Tennessee Valley Authority as a backup.
“By producing our own power and recycling our own water on-site, Project River will rebuild our local forestry industry without raising anyone’s power or water bills,” said property owner Steve Wright. “We live, work, and raise our families in this community, which is why we made sure to hire the best energy experts in America to ensure Project River would protect what makes Cleveland and Bradley County great while ensuring private investment would make our schools and public services better funded than ever.”
The company touted the possible addition of 2,600 jobs to the local economy. An estimated 1,700 would be in the forestry division, 125 in biomass handling and processing, 525 in data center jobs and 250 in power generation positions. Along with the jobs, the project would bring in additional tax revenue for Cleveland and Bradley County, according to information provided by Project River.
Groundbreaking for the project is not expected until the end of 2027, a spokesman for the company told The Center Square.
But the data center proposal generated the most speculation on social media shortly after the announcement on Wednesday. However, the company does not have a deal to build a data center on the property, despite a news release that mentions one, the spokesman said. But there have been discussions with companies, he said.
A data center would be powered by the on-site power plant and use water from the biomass-drying project, according to a fact sheet from Project River. The property is in a valley, and trees would create a natural sound barrier, according to the spokesman.
Wright Brothers has several hurdles to overcome before a data center can be considered. The company filed an application with the City of Cleveland to have the land annexed into the city, according to a news release.
The land is currently in Bradley County, which enacted data center regulations in April. Those regulations ban data centers within 3,000 feet of residences, schools or churches.
Bradley County Mayor Gary Davis said resident concerns should be heard, but this project is different than a traditional data center project.
“If it ultimately performs the way it is being presented, there could be significant benefits to our community, including jobs, investment and potentially new opportunities for our regional logging and timber industry,” Davis said in a social media post. “But those benefits, including the financial projections, need to be verified as the process moves forward.”
From tiny St. Joseph, with a population of less than 1,000, to Tennessee’s largest city, Nashville, residents and state and local officials are taking note of the influx of data centers into the state. Amid pictures of kids’ lemonade stands and employee accolades on its Facebook page, St. Joseph touts the city council’s vote to make it one of the first cities in Tennessee to ban data centers outright.
The Metropolitan Government of Nashville and Davidson County placed a temporary moratorium on data center development after Atlanta-based D.C. Blox announced a facility near the Nashville Zoo.
D.C. Blox is suing the government, saying Metro officials are refusing to process the company’s permits in what it calls in court documents a “targeted attack” that violates federal constitutional protections. The case is still pending.
State lawmakers addressed data center electricity costs by passing House Bill 1847, which requires data centers that use more than 50 megawatts of power to pay their own electricity costs. The bill was signed into law by Gov. Bill Lee.
The Tennessee Valley Authority passed a resolution on Aug. 20 setting a special rate for data centers that is about 10% higher than their normal rate.
“Maintaining low rates and high reliability for customers is our first priority,” said TVA Chair Mitch Graves in a statement made after the meeting approving the rate. “As AI and advanced industries consume more electricity, TVA’s Board is making sure that hardworking American families and small businesses aren’t left carrying the cost.”
