Senate Bill 2112, also known as House Bill 2456, amends various sections of the Tennessee Code Annotated to establish regulations for data centers operating within the state. The bill introduces a new part under Title 65, Chapter 4, which defines key terms such as "data center," "commissioner," "department," "electric utility," and "water utility." It mandates that, starting January 1, 2027, all data centers must register with the Department of Revenue, providing specific information including their physical address, power capacity, and details of utilities supplying services. Additionally, data centers are required to notify the commissioner of any changes in their operational information and must report cessation of operations.

The bill also outlines the reporting obligations for fuel suppliers, electric utilities, and water utilities, which must report their service provision to data centers on a monthly basis. The Department of Revenue is tasked with compiling this data into monthly reports that will be published on its website. To enforce compliance, the bill allows for civil penalties of up to $1,000 per day for failure to register or update registration, with a maximum penalty of $25,000. The commissioner may also seek injunctive relief in Davidson County Chancery Court for ongoing violations. The act is set to take effect on July 1, 2026.