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TVA Approves Gas-Powered Data Center Plan, Slashing Renewables

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Summary

The Tennessee Valley Authority approved a 2026 plan prioritizing gas plants for AI data centers over renewable energy, drawing sharp criticism from the Sierra Club. Critics say the move burdens ratepayers and undermines climate progress.

MEMPHIS, Tennessee — Today, the Tennessee Valley Authority approved its 2026 Integrated Resource Plan, setting the stage to overbuild risky gas power plants to serve A.I. data center interests.

TVA’s 2026 IRP lays out a dangerous and expensive roadmap for the people of the Tennessee Valley, where our power grid is over-reliant on risky gas plans and outdated coal plants, while dramatically shrinking the plan for renewable energy.

The TVA board also voted on a rate class for large load customers like A.I. data centers. TVA’s intentions remain clear in its IRP. TVA wants to roll out the red carpet for data centers, at the expense of the long-term future of the Tennessee Valley.

In response, Bonnie Swinford, Campaign Organizing Strategist for the Sierra Club, released the following statement:

“After so many years of advocacy and organizing from the people of the Tennessee Valley, TVA’s IRP screws over the public by serving corporate and Big Tech interests. Data centers need this gas buildout, the people need renewable energy. At a time when we are all struggling to pay our monthly bills, TVA has decided to add to our burden by serving A.I. data centers rather than the public.

We know fights like this are measured in years — and we are not deterred by this disappointing decision. Unlike the TVA board or the Big Tech developers, we are not in this fight for quick profits or political appointments. We are in this fight because the Tennessee Valley is our home, and it deserves our protection. We will continue to push for renewable energy that serves our communities while keeping our air and water clean.”

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