Your power bill might get more expensive (again)

MEMPHIS, Tenn. — Data centers are bringing an unprecedented demand for power across the country. Millions of families across the South might pay the price by the end of the year.

In February, the Tennessee Valley Authority sent a letter to more than 150 power companies, including MLGW. It warned of “unpredictable” growth, in part from the “rapidly scaling loads” of data centers across the valley. FOX13 obtained the letter Wednesday evening from the TVA.

The end of the letter hinted that a rate change could be “likely in the next fiscal year.”

“That’s ridiculous,” said Kanecia Ford, a Whitehaven resident. “It’s crazy. You have to pay more for food now. You have to pay more for gas… Paying all these bills, it’s a lot.”

TVA spokesman Scott Brooks told FOX13 the board sets the annual budget in August. If the board approves a rate increase, it should go into effect in October.

Brooks said TVA has added more than 1,500 megawatts of new power generation in the past year. He said there are plans to add an additional 3,700 megawatts onto the system over the next year.

However, he said data centers make up 18% of the company’s industrial load.

“It’s certainly grown from single digits to 18% just in a couple of years,” he said. “We expect to see that industrial load growth, maybe double by 2030.”

Brooks said TVA does not know exactly how many data centers are in the valley because the vast majority are connected to local power companies. According to DataCenterMap.com, there are at least 61 data centers in Tennessee, including 13 in Memphis.

Residential customers cannot keep up.

“I think it’s crazy how they can just raise the rate like that,” said Eleanor Chandler, an East Memphis resident. “It’s unfair to everyone living here.”