By Sardar Khan, Opinion Contributor
Tennessee is standing at a defining moment in its economic journey. In Memphis and across Shelby County, we are seeing how artificial intelligence, cloud computing, advanced logistics, and digital tools are transforming industries and shaping the future of work. Our region has the opportunity to strengthen its economy, create high-quality jobs, and ensure that Tennessee remains a leader in the nation’s digital infrastructure by welcoming world-class data centers.
Some Tennesseans have asked what these facilities mean for our local communities. Those questions deserve thoughtful answers, and the broader picture is overwhelmingly positive. Data centers are not simple warehouses of equipment. They are major economic engines that create jobs, support small and midsize businesses, and place Tennessee at the center of the nation’s digital infrastructure.
When a data center is built, it brings hundreds of millions of dollars in private investment. That investment flows directly to construction crews, steel fabricators, electricians, fiber installers, truck drivers, landscapers, security teams, and dozens of local suppliers. Those dollars circulate through the region and create stable, long-term work for Tennessee residents. For Memphis, a city built on logistics, reliability, and a skilled workforce, the alignment could not be stronger.
Data centers also expand the tax base in a durable and predictable way. Property tax revenue from these projects strengthens schools, roads, utilities, and broadband without placing added strain on existing services. Cities and counties gain stable revenue that they can reinvest in the priorities that matter to families and small businesses. This is how we grow the economy without raising taxes or burdening local budgets.
Workforce development is another major advantage. Tennessee employers consistently highlight the need for more skilled electricians, technicians, and maintenance workers to support today’s advanced industries. Data center projects help build that pipeline. Across the country, organizations like Google have invested in apprenticeship programs that train hundreds of new electrical and maintenance workers, including specialized skills related to AI tools and digital infrastructure. Those programs create a clear path from classroom to career and help keep young families rooted in their communities. Tennessee has the opportunity to secure the same kind of partnerships and long-term benefits for Memphis and Shelby County.
Energy is often part of the conversation, but many concerns are based on outdated and false assumptions. Modern data centers operate with remarkable efficiency. They rely on advanced cooling technology, AI-driven power management, and increasing levels of renewable or carbon-free energy. Closed-loop and air-cooled systems significantly reduce water usage, a crucial factor for communities committed to sustainability. Backup generators run only during emergencies or brief testing windows required by law.
Concerns about rising electricity rates also deserve context. The primary drivers of higher utility bills are grid upgrades, transmission improvements, and weather-related demand, rather than data centers. In fact, the steady and predictable power use of data centers can help stabilize long-term costs by spreading fixed grid expenses across a larger customer base. When data centers finance new substations, transformers, and power lines, they improve grid reliability for everyone and reduce the financial burden on households and small businesses. In many cases, these investments help keep costs more predictable over time.
Tennessee is well-positioned to benefit from this moment. Our state boasts a strong workforce, a favorable business climate, and an economy that seamlessly blends traditional industries with rapid innovation. Hosting data centers strengthens Tennessee’s standing in the national technology sector and ensures that the next generation of digital infrastructure is built here rather than overseas. China is rapidly expanding its computing capacity, and the United States cannot afford to fall behind. Tennessee can support America’s competitive edge by welcoming responsible, forward-looking high-tech investment.
Data centers also support the systems that Tennessee families and businesses rely on daily. Hospitals, manufacturers, universities, and small businesses all require fast, secure, and reliable computing power. By hosting data centers locally, Tennessee ensures that its employers can thrive in a digital-first economy, rather than watching opportunities shift to other states.
Tennessee has consistently demonstrated its ability to grow responsibly while preserving the character of our communities. With practical planning, clear expectations, and continued investment in modern, efficient infrastructure, data centers align naturally with our state’s ambitions and future. They are not a disruption to our way of life. They are a practical tool for strengthening local economies and preparing every region of our state for a future driven by technology.
Tennessee has a real opportunity to establish a modern, high-tech economy. In Memphis and across Shelby County, supporting data center development means creating well-paying jobs, boosting local businesses, strengthening the power grid, and building lasting economic growth for our communities. These projects are not obstacles to progress; they are drivers of it. By embracing data centers, Tennessee positions itself to lead the nation in technology, innovation, and opportunity.
Sardar Khan is a portfolio entrepreneur and tech business owner and consultant of Clarity Point Consultancy in Memphis.
