The Tennessee Valley Authority is raising rates on all new and existing data centers by 10%, alongside a mandatory upfront fee, to cover the growing infrastructure and energy costs of supplying high-demand facilities.

TVA officials and Huntsville Utilities leaders presented the rate structure update to the Huntsville City Council to officially amend local records ahead of its implementation by October 1. Representatives emphasized that the policy applies exclusively to data centers and is designed to shield residential and standard commercial customers from the financial strain of shifting energy demands while keeping the power grid reliable and affordable.

During the city council discussion, officials noted that Meta’s facility in the North Huntsville Industrial Park—which receives direct power from TVA and water from Huntsville Utilities—was brought up, though no new data center construction projects were discussed. Meta representatives are scheduled to address the public regarding the situation at the December 3 city council meeting.