How Did Chattanooga Become America’s First 25-Gig City?

January 22, 2025

In the early 1980s, Chattanooga, Tennessee faced significant economic challenges due to the decline of its manufacturing sector, which led to business closures and offshoring operations. The city’s downtown, although home to several major employers, became desolate after working hours as people left for home. Despite being located along the Tennessee River, Chattanooga had lost its connection to the river, representing a broader disconnect within the community. In response, Chattanoogans embarked on a public visioning process aimed at revitalizing the city, with a commitment to transforming Chattanooga into the best mid-sized city in America. The determination of the residents to address the economic, social, and infrastructural adversities has been truly inspiring.

The Visioning Process and Initial Revitalization Efforts

The visioning process resulted in a diverse portfolio of projects, including the establishment of the Tennessee Aquarium on Chattanooga’s downtown riverfront. This initial focus on redevelopment laid the groundwork for subsequent community-led initiatives addressing a range of issues. Over the next three decades, Chattanooga experienced a wave of revitalization projects that reshaped the community. Public and private sectors collaborated to foster a spirit of innovation and community building, gradually restoring the city’s vibrancy.

In the early 2000s, Chattanooga’s municipal electric utility, EPB of Chattanooga, partnered with Hexagon AB, a global technology company, to embark on a transformative project that would become pivotal for the city’s ongoing reinvention. Utilizing Hexagon’s technology and other solutions, EPB constructed an advanced fiber-optic-based smart grid and offered 1-gigabit-per-second internet service to every home and business within its 600-square-mile service territory. This project was part of Chattanooga’s bold goal of becoming “Gig City” by leveraging innovation and technology to rebuild itself. EPB’s emphasis on technology rapidly became a cornerstone for the city’s revival.

Building the Smart Grid

The journey toward building this advanced infrastructure began in the late 1990s when EPB explored enhancing the resilience and reliability of Chattanooga’s electricity grid by deploying automated switches and connected devices across the local system. Traditional communications technologies available at that time were insufficient for the scale of EPB’s vision and quickly became obsolete. The solution lay in creating a smart grid built on a fiber-optic network, capable of delivering both reliable electricity and high-speed internet services across its entire service area. The vision was expansive, aiming to redefine the standard for municipal utility services nationwide.

Launched in 2009, during the Great Recession, the smart grid construction project was initially set to complete 90% of the network over a 10-year span. However, with the aid of a $111.5 million grant from the Department of Energy, EPB accelerated its timeline and completed the network in just two years, making it accessible to all customers. Once operational, the fiber-optic network served as the communications backbone for the most advanced and automated smart grid in the United States, enabling EPB to launch the world’s fastest community-wide internet service. The smart grid was more than an infrastructure project; it represented hope and forward-thinking resilience for Chattanooga residents.

Technological Innovations and Community Impact

The design of the fiber network was forward-thinking and future-proof from the outset. EPB incorporated additional components like advanced meters and automated IntelliRupter switches from S&C Electric Co. to complete the smart grid infrastructure, reducing power outage times and enhancing system resilience. This comprehensive approach benefited all parts of the community — whether urban, suburban, or rural — showcasing EPB’s dedication to inclusive service provision. Community members began noticing tangible improvements in service reliability almost immediately.

Hexagon’s geospatial asset management software played a pivotal role in enabling EPB to integrate its electric grid with the new fiber network. This hybrid model allowed EPB to co-locate fiber infrastructure within existing electricity infrastructure, minimizing construction costs and streamlining deployment. Furthermore, Hexagon’s technology supported both immediate and long-term needs, allowing EPB to continuously upgrade network electronics and enhance internet speeds cost-effectively. The synergy between the electric grid and fiber network soon became a benchmark in smart infrastructure design.

Overcoming Challenges and Ensuring Inclusivity

The deployment of Chattanooga’s smart grid faced numerous technical and operational challenges. One major hurdle was developing systems to sustain the ambitious infrastructure plans over the long term. The varied geographic nature of EPB’s service territory — including urban centers, suburban areas, and remote rural communities — required navigating complex deployment scenarios. Ensuring that rural areas had access to the network was a non-negotiable element of the plan, further validated by using fiber-optic connectivity for both internet services and smart grid communications, proving successful even with varying customer density. This inclusive approach was key to achieving equitable technology access for all residents.

The creation of Chattanooga’s smart grid helped bridge the digital divide, offering symmetrical high-speed internet to both urban and rural communities. These efforts were further amplified during the pandemic through initiatives like HCS EdConnect, which provided free high-speed internet to Hamilton County Schools students qualifying for free or reduced lunch, extending services to more than 16,000 students and nearly 28,000 residents. Initiatives such as these not only provided immediate relief but also underscored the long-term benefits of investing in robust digital infrastructure.

Economic and Social Benefits

The economic and social benefits resulting from Chattanooga’s smart grid and high-speed internet access have been substantial. According to a study by The University of Tennessee in Chattanooga, the grid generated $2.7 billion in community value within its first decade of operation, including the creation of nearly 10,000 jobs and the reduction of power outages by 55%. Savings from decreased outage durations alone amounted to $55 million annually, benefiting customers by preventing food spoilage and lost productivity. The smart grid proved to be a game-changer in terms of both operational efficiencies and economic returns.

The robust fiber network also played a pivotal role in attracting technology companies and high-paying jobs, turning Chattanooga into a hub for innovation. The city earned recognition as a “living laboratory” and received over $110 million in Smart City research funding from the U.S. Department of Energy. Building on this foundation, EPB continued to push the boundaries of what is achievable. In 2022, Chattanooga became the first city in the nation to offer 25-gigabit community-wide internet service, thanks to a significant upgrade to the system. The city’s remarkable transformation was rooted in a continual quest for pushing the envelope in both technology and vision.

Besides enhancing internet speeds, EPB is also bolstering grid resilience through initiatives such as energy storage facilities and microgrid installations at essential sites like the Chattanooga airport and the Chattanooga Police Services Center. These microgrids ensure that critical facilities remain powered during outages, enhancing overall grid reliability. EPB is also investing in energy storage for rural parts of its grid, reinforcing its commitment to equitable service across its entire territory. These continued investments highlight the role of foresight and preparedness in sustaining a modern urban infrastructure.

Looking Forward

In the early 1980s, Chattanooga, Tennessee, encountered serious economic challenges as its manufacturing sector began to decline. This downturn led to the closure of many businesses and the relocation of operations overseas. Although several major employers were based in the city’s downtown area, it became virtually deserted after working hours when people left for their homes. Despite Chattanooga’s picturesque setting along the Tennessee River, the city had become disconnected from the riverfront, symbolizing a broader sense of disconnection within the community itself.

Determined to address these pressing issues, the residents of Chattanooga initiated a public visioning process. Their goal was to rejuvenate the city and elevate it into the best mid-sized city in America. This effort involved widespread community engagement and collective action to foster economic, social, and infrastructural improvements.

Chattanoogans’ resolve and collaborative spirit were truly inspiring, demonstrating their commitment to overcoming adversity and to reconnecting both with each other and their environment. Through numerous revitalization projects, they aimed not only to restore Chattanooga’s economic stability but also to create a vibrant, attractive, and connected community for all its residents.

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