As the demand for electricity mounts across the South, the Tennessee Valley Authority is set to decide what mix of energy sources it will rely on in the years ahead and whether mega users such as data centers should pay more for power.
TVA was supposed to have a new strategy in place by 2024 to replace the 2019 version of its integrated resource plan, which maps power demand across its seven-state service region and helps guide those needs with suggestions on the energy sources the utility will prioritize in the years ahead.
A new plan was further delayed in 2025, when the board was stripped of its voting power after President Donald Trump fired several members. The president's replacements now dominate the board, which will vote on a new plan Aug.
20 in Memphis to determine the future role of coal, natural gas, nuclear, solar and other energy sources across the Tennessee Valley.
Preliminary plan outlines how TVA is thinking about energy mix
Federal energy policies could play a role in how TVA meets rising power demands. In 2025, for example, laws were changed to remove tax credits for many renewable energy projects.
The preliminary plan recommends doubling down on power sources like hydroelectricity and nuclear and calls for more gas-powered generation, while also considering more solar power. TVA owns three nuclear plants and may build more in the years ahead.
Environmental and government transparency groups have criticized the plan, saying TVA should have allowed more time for public input and placed greater emphasis on renewable energy sources. The criticism comes as East Tennessee embraces a nuclear energy boom, fueled in part by Oak Ridge's Manhattan Project legacy and Trump's push to expand U.S. nuclear capabilities.
Data center power demand rising for TVA and may double by 2030
Trump also has an interest in artificial intelligence powered by data centers, which the president recently called "a tremendous thing" as communities across the country fight the facilities in their backyards.
At the same time, the White House recently issued a pledge to keep ratepayer's bills low amid a data center buildout. TVA, along with other major power providers and tech companies, have signed on.
More than 150 local power companies that buy electricity from TVA were told earlier this year that utility leaders will weigh options that include kicking data centers off the manufacturing service rate customer class and requiring data center companies to help offset TVA's costs tied to new facilities.
Data centers in early 2026 accounted for nearly 20% of all power demand from TVA’s industrial customers. That volume may double by 2030, former CEO Don Moul said in early February.
Thursday's TVA board meeting comes as Memphis sits at the center of TVA's growing debate over data centers. In February, the board voted to double the power available to Elon Musk's xAI facility in West Tennessee.
Mariah Franklin reports on technology and energy for Knox News. Email: mariah.franklin@knoxnews.com. Signal: mariahfranklin.01
This article originally appeared on Knoxville News Sentinel: TVA's next move could shift energy costs (and sources) as data centers spin up
