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The Governors were out-rebounded only by a 41-40 margin.
Gray finished with a game-high 29 points.
Miikka Salomaki, James Neal and Shea Weber also scored for Nashville.
In addition, junior infielder Logan Gray was one of two players selected as the league’s Preseason Co-Player of the Year.
The six-member junior class is the roster’s largest.
Davis ended with 10 points, seven rebounds and six assists as the Govs put four players in double figures.
Austin Peay returns home for a 5:15 p.m., Saturday contest against league-leading UT Martin.
For a second straight game the Governors will have the task of going on the road to play the OVC West leader.