Senate Bill 2112 aims to regulate the operation of data centers in Tennessee by establishing a registration requirement with the Department of Revenue. Starting January 1, 2027, data center owners or operators must register their facilities, providing essential information such as the physical address, contact details, power capacity, and the names of utilities supplying services. Additionally, they are required to notify the commissioner of any changes to this information within thirty days and must inform the department if the data center ceases operations. The bill mandates that utilities report the amount of fuel, electricity, or water supplied to the data center, with the department compiling this data into monthly reports available on its website.

To enforce compliance, the bill allows the department to impose civil penalties of up to $1,000 per day for registration failures, capped at $25,000. Furthermore, the commissioner can seek injunctive relief in Davidson County's chancery court to address ongoing violations. The department is also authorized to create rules to implement the provisions of this act, which is set to take effect on July 1, 2026.