A Generational Opportunity: Data Centers, Growth and the Future of the Valley

When Tyler Mauldin, Lead on Google’s Energy Markets & Policy Team, took the stage during TVPPA’s first-ever Lightning Round Talks at the 2026 Annual Conference, he didn’t begin by talking about artificial intelligence, data centers or megawatts.

Instead, he talked about his grandparents.

Raised on a family farm outside Calhoun, Ga., Mauldin grew up hearing stories about life before electricity and how its invention transformed the rural communities of our region. One of his grandfathers was born in 1910 and didn’t have electricity, a washing machine, or even a vehicle until he was nearly 30 years old.

Looking at TVA’s history, Mauldin sees a direct connection between the agency’s original mission to improve the lives of those living in the Valley and today’s conversations about economic growth and technology.

“Without the TVA Act, I’m confident that I wouldn’t be standing here today talking to you on behalf of Google,” he told conference attendees.

Today, Mauldin believes the rapid growth of data centers represents another transformative moment for the Tennessee Valley — one that brings both tremendous opportunity and significant responsibility.

Google currently operates data center campuses in North Alabama and Clarksville, Tenn., and has invested more than $8 billion in those facilities since beginning operations in the Valley in 2019. As utilities grapple with growing electric demand driven by AI and cloud computing, Mauldin says finding solutions to those challenges will require a partnership between technology companies, TVA, and local power companies.

Following his presentation, TVPPA Magazine sat down with Mauldin to discuss data centers, ratepayer protection, reliability and the future of energy in the Valley.

Q: There is a lot of anxiety around explosive load growth from AI and data centers right now. What do you think people misunderstand most about data centers and their impact on the grid?

Mauldin: The biggest misconception is that having more data centers on the grid will increase electricity costs or electricity prices. Yet, studies and real-world examples show that data centers can be a part of the solution to energy affordability by contributing significantly to local economies and grid infrastructure.

The power grid has massive fixed costs — the physical poles, wires, and substations that exist regardless of how much power flows through them. Large load customers, like data centers, can help put downward pressure on utility rates by spreading the fixed cost of essential grid upgrades across more energy usage, reducing prices for all customers.

There’s always going to be community concern about major infrastructure projects. The utility industry has seen that often, whether it’s acquiring right-of-way, building transmission or siting new generation. Data centers are facing many of those same challenges.

A lot of the conversation happening around data centers today is being shaped by misinformation. Some of the concerns have merit to them, but a lot of what people are hearing is based on incomplete information.

Anytime I have the opportunity to speak with utilities or communities, I welcome it because it gives us an opportunity to clarify things and better inform the people who are working with customers and ratepayers every day.

Q: One of the themes of your presentation was ratepayer protection. How does Google approach concerns that existing customers could end up paying for data center growth?

Mauldin: As the Ratepayer Protection Pledge exemplifies, we are committed to paying for 100% of the power we use. And when we build data centers, we’ll cover the infrastructure needs directly driven by our growth because we don’t want a grandmom in Memphis footing the bill for our growth.

We’ve worked with utilities across the country on multiple ways to ensure we grow the right way and don’t shift costs onto other customers.

One of the concepts we’ve supported is what we call a capacity commitment framework. If a large-load customer wants to locate in a utility’s service territory, there should be stronger financial commitments in place. That can include higher study fees, upfront collateral requirements, longer-term contracts, minimum demand charges, and termination fees.

When you put that framework together, it allows utilities to build the infrastructure needed to support growth while protecting existing customers from stranded costs. The utility gets the confidence it needs to invest, the large-load customer gets the power it needs, and communities benefit from economic development.

Done right, data centers can actually put downward pressure on rates. Data centers are high-load-factor customers. We use electricity very consistently, almost 24 hours a day, seven days a week. That means more megawatt-hours spread across the system and greater economies of scale.

Q: You talked about being a good “grid citizen.” What does that mean to Google?

Mauldin: Google takes its social license to operate extremely seriously.

When we enter a community, we want that community to be better because Google is there. We want to be a good neighbor. We want to be a good partner. That’s what being a good grid citizen means to us.

That’s one reason you’re seeing us invest in energy efficiency and weatherization programs around the country. It’s why we’ve partnered with TVA on demand response and system flexibility programs. It’s also why we’ve worked with TVA on bringing new resources and new solutions to the Valley.

Doing this the right way is important.

We don’t view ourselves as simply showing up and asking for power. We want to be part of the solution.

Q: Demand response and flexibility have become increasingly important topics for utilities. How flexible can data center loads actually be during periods of grid stress?

Mauldin: Demand flexibility varies by the data center location, the types of workloads being run, and the customers they serve. For instance, high levels of reliability are critical for services like Search and Maps, as well as Google Cloud customers in essential industries like healthcare.

We’ve developed the capability to limit or shift a portion of machine learning (ML) workloads running in our data centers, without impacting the services people rely on 24/7. That reduces the overall data center power demand, helping to stabilize TVA’s grid during certain hours or times of the year.

Historically, we’ve planned the power system around the assumption that all new electrical loads can’t be flexed. 

That’s changing.

Google has contracted a gigawatt of demand response capacity across the country, including here in the Tennessee Valley. We’re working with TVA on when and how to systematically reduce or shift load in a way that supports reliability.

The goal isn’t to create instability.

It’s to help enable valuable capacity during periods when utilities need that support most.

Q: Some people worry that large data centers could create reliability challenges for the grid. How do you respond to those concerns?

Mauldin: Reliability is a top priority for us.

Google is actively working with utilities and reliability organizations to ensure our operations support not only what happens inside the fence of our campuses but also the stability of the grid outside the fence.

We don’t want fluctuations inside our facilities creating issues on the broader system. That’s why we’re working with utilities to put the right protections and operating procedures in place.

Demand response is a good example. It’s not about abruptly taking load offline. It’s about working in partnership with utilities to reduce demand in a coordinated way that helps balance supply and demand and maintain system reliability.

We want our load to help protect and strengthen the grid.

Q: Looking ahead, what energy technologies will be most important for supporting AI growth and economic development?

Mauldin: Nuclear will be incredibly important.

We have a goal of powering our operations with 24/7 carbon-free energy; there’s no future energy system that achieves that without nuclear playing a significant role.

At the same time, we understand that speed to power matters. We recognize that utilities are balancing affordability, reliability and the need to serve growing demand.

That’s why partnership is so important. It’s also why we signed the world’s first corporate agreement in 2024 to purchase 500 MW of nuclear energy from multiple Small Modular Reactors (SMRs) developed by Kairos Power. The initial deployment of Kairos’ advanced nuclear reactor — the Hermes 2 Plant in Oak Ridge, Tenn. — was announced last year through an innovative new 50 MW power purchase agreement (PPA) between Kairos and TVA.

The PPA is the first purchase of electricity from an advanced GEN IV SMR by a U.S. utility and will provide power to our TVA-served data centers in Montgomery County, Tenn., and Jackson County, Ala.

We don’t expect utilities to do this alone, and we don’t expect Google to do it alone. Meeting this moment the right way requires this type of collaboration between utilities, technology companies and policymakers.

The opportunity in front of us is significant. After years of flat or declining load growth, we’re seeing demand return in a meaningful way.

For Google, the Tennessee Valley is a great place to do business. TVA and the local power companies have been great partners, and we’re laser-focused on meeting this moment the right way without creating impacts for residential or commercial ratepayers.

The growth is coming. The question is how we work together to make sure everyone benefits from it.