Legislation

The Data Center Community Reinvestment Act of 2026 would impose a federal excise tax of 1 cent per kilowatt-hour on electricity consumed by data centers with a power capacity exceeding 1 megawatt, directly increasing operating costs for the industry. The bill defines data centers broadly as facilities that primarily contain electronic equipment for processing, storing, or transmitting digital information and meet the power threshold. Revenue generated from this tax would be allocated across multiple funds, with one-fifth each directed to the Land and Water Conservation Fund, the Housing Trust Fund, and a new Energy Technology Trust Fund, and one-fifth to the Highway Trust Fund and Superfund, creating dedicated revenue streams for environmental and infrastructure investments. For the data center industry, this represents a significant operational expense that could impact facility profitability, expansion decisions, and competitiveness, particularly for large-scale operations. The bill is currently in the early stages of the legislative process, having been referred on August 13, 2026 to the House Committees on Ways and Means, Energy and Commerce, and Science, Space, and Technology, where its provisions will be reviewed according to each committee's jurisdiction. The bill's trajectory will depend on committee deliberations and whether there is sufficient legislative support to advance it through the House and potentially the Senate.

H.RES. 1471 is a congressional resolution expressing support for a "Data Center Bill of Rights" that would grant communities expanded authority over artificial intelligence data center development and operation. The resolution identifies concerns about nondisclosure practices by data center developers, projected water consumption of up to 32 billion gallons annually by 2028, air and noise pollution risks to nearby residents, and the limited permanent job creation from even the largest facilities. The proposed rights would allow communities to ban data centers from residential areas and near schools and hospitals, reject proposed facilities through transparent local processes, impose statewide development pauses, require independent environmental and economic impact assessments, demand enforceable community benefit agreements, and enforce full tax compliance with clawback provisions. The bill would fundamentally shift regulatory authority over data center siting from state and federal levels to local governments and counties, preventing state preemption of local restrictions. Currently, the resolution has been referred to the House Committee on Energy and Commerce and the Committee on the Judiciary for consideration, meaning it remains in early legislative stages with an uncertain path forward. Given that this is a resolution expressing the sense of Congress rather than binding legislation, passage would indicate congressional intent to support local autonomy but would require separate legislative action to establish enforceable requirements on the data center industry.

The Smart Data Center Policy Act would direct the U.S. Secretary of Commerce to conduct a comprehensive study examining the feasibility and implications of locating data centers at or near military installations, airports, rail hubs, air cargo facilities, air traffic control facilities, and industrial zones across the United States. The study would assess construction costs for data centers in these locations, evaluate their effects on energy grids, environmental resources, and water systems, identify which covered locations have sufficient physical and infrastructure capacity to support new data centers, and recommend potential federal incentives to encourage such development. The bill affects a broad range of stakeholders including data center operators, military officials, airport and transportation authorities, utilities, environmental advocates, and communities near these facilities, as the study's findings could shape future federal policy on data center placement and investment. The legislation is currently in the early procedural stage, having been referred on August 3, 2026 to three House committees (Transportation and Infrastructure, Armed Services, and Energy and Commerce) for review according to their respective jurisdictions. The Secretary of Commerce would be required to submit findings to Congress within 180 days of enactment, making this a relatively time-limited directive rather than a permanent program. For the data center industry, this bill represents a potential pathway toward federal support for strategic facility placement near key infrastructure hubs, though its ultimate impact depends on the study's recommendations and whether Congress acts on them.

The Data Center Resource Disclosure Act would direct the Assistant Secretary of Commerce for Communications and Information to conduct an annual survey requesting voluntary information from data center operators about their energy and water consumption over the preceding year. The bill requires the federal government to publish survey results on an interactive map within 180 days, identify facilities that do not provide complete information, and summarize public comments received from utilities, labor organizations, state regulators, and consumer advocacy groups. The legislation also mandates a congressional report with recommendations for improving data center regulation with a focus on transparency. Currently, the bill is in the early stages of the legislative process, having been referred to the House Committee on Energy and Commerce after its introduction on July 30, 2026, by Representative Scholten and cosponsors Subramanyam and Grijalva. The measure takes a data-gathering approach to data center oversight rather than imposing direct restrictions or incentives, seeking to establish a public record of resource consumption across the industry while maintaining voluntary participation from operators. For the data center industry, the bill represents a move toward greater transparency and federal information collection that could inform future regulatory decisions, though the voluntary nature of the survey means compliance depends on operator willingness to participate.

The "Defending Our Energy and Water Act" would establish new water protection requirements for federal data centers by requiring the Office of Electronic Government to update minimum standards for new data center construction within 180 days of enactment. The bill specifically mandates that these updated standards include requirements for water resource protection, with emphasis on deploying the most water-efficient cooling systems available, and extends the sunset date of the underlying 2015 data center standards from 2026 to 2031. Additionally, the legislation amends Department of Defense energy efficiency targets to require federal data centers to identify and integrate water efficiency technologies that enhance facility resiliency while minimizing operational impacts on water resources. The bill affects federal data center development and operations, particularly those within the Department of Defense, and reflects growing concern about the significant water consumption of large-scale computing facilities in an era of increasing water scarcity. The measure is currently in the early stages of the legislative process, having been referred to both the Committee on Oversight and Government Reform and the Committee on Armed Services in July 2026, with no further action documented to date. The bill's trajectory will likely depend on committee deliberations and whether stakeholders view water conservation requirements as essential environmental stewardship or as an operational burden on federal technology infrastructure.

The Data Center Water and Energy Transparency Act of 2026 would require large data center operators to submit annual reports on their energy and water consumption to state governments or, if a state lacks its own data collection program, to the Environmental Protection Agency, Department of Energy, and Department of Agriculture. The reporting requirement applies to data centers with a peak demand of at least 25 megawatts and would mandate disclosure of monthly energy and water use figures, information about power generation methods, efficiency metrics, and five-year projections for future consumption along with proposed efficiency improvements. The bill defines key terms such as energy use, water use, power usage effectiveness, and water usage effectiveness by reference to existing federal law and international standards, establishing a standardized framework for data collection across states. For the data center industry and communities hosting these facilities, the legislation matters because it would create the first comprehensive federal transparency framework for tracking resource consumption by large data centers, enabling policymakers and the public to better understand the infrastructure demands of data-intensive computing as the sector continues to expand. The bill currently stands at the House Committee on Energy and Commerce following its introduction on July 22, 2026, and faces typical committee review procedures before any floor action. As a straightforward transparency and reporting measure without operational mandates or performance standards, the bill is unlikely to significantly restrict data center development but could inform future policy decisions related to energy and water resource management.

The Data Center Tax Accountability and Disclosure Act of 2026 would remove a valuable tax benefit from artificial intelligence data centers while imposing new transparency requirements on the data center industry. Specifically, the bill would eliminate bonus depreciation, a tax deduction that allows businesses to recover the cost of equipment more quickly, for AI data centers unless they achieve LEED Green Building certification at the Platinum or Gold level, creating a financial incentive for environmentally sustainable construction. The bill also establishes mandatory disclosure requirements requiring data center operators to report detailed information about their electricity and water consumption to the Environmental Protection Agency and affected local governments and communities. These provisions would apply to permanent or semipermanent structures with at least one graphics processing unit that dedicate at least 20 percent of operations to artificial intelligence development or operations. The bill currently has limited momentum in the legislative process, having been introduced in the Senate on July 21, 2026, and referred to the Committee on Finance without advancing further at the time of this summary. The legislation represents a policy approach that aims to balance AI infrastructure development with environmental accountability and public disclosure, though industry groups may view the tax treatment restrictions and compliance obligations as significant barriers to data center investment and expansion in the United States.

The No AI Data Centers on Federal Lands Act (H.R. 9939) would impose a comprehensive ban on the construction and operation of artificial intelligence data centers on all federally owned or managed lands in the United States, with limited exceptions for tribal lands. The bill defines AI data centers broadly to include facilities with power capacities exceeding 20 megawatts or equipped with advanced cooling systems, as well as any facilities explicitly designed to develop or operate AI models at scale, along with their associated infrastructure such as power plants, transmission lines, and water systems. Any existing AI data centers currently operating or under construction on federal lands would be required to cease operations within 30 days of enactment and subsequently be removed or demolished, with site remediation conducted under environmental laws. The legislation was introduced by a bipartisan group of representatives led by Ms. Tlaib in July 2026 and is currently referred to the House Committee on Natural Resources, where it faces substantial procedural hurdles given the committee's typical jurisdiction over land management issues and potential opposition from industries relying on federal land access. The bill directly affects data center developers and operators seeking to locate facilities on the roughly 640 million acres of federally controlled land, which represents approximately 28 percent of U.S. total land area and includes valuable sites with existing power and water infrastructure. The measure reflects growing congressional concern about AI data center resource consumption and environmental impacts, though its passage prospects remain uncertain given competing interests around federal land use and national technology infrastructure development.

H.R. 9777, titled the "Protecting Ratepayers Act," would require all data centers with a power demand of 5 megawatts or more to operate entirely off the electrical grid and public water systems, effective 180 days after enactment. The bill applies to both new data centers not yet operational and existing facilities already in operation, affecting any private company or entity that owns, operates, or maintains such facilities or plans to do so within the next five years. Data centers would be required to source all energy from captive power plants, on-site generation, or other sources completely separate from the grid, and all water from on-site or alternative sources completely separate from public water systems, including backup supplies for both. The legislation, introduced by Representative Donalds on July 20, 2026, is currently referred to the House Committee on Energy and Commerce and has not advanced further at this time. The bill's stated purpose is protecting electrical ratepayers, though it would fundamentally reshape how data centers can operate by eliminating their ability to draw from existing utility infrastructure and placing substantial operational and capital constraints on the industry. The requirement to provide entirely independent power and water systems would likely increase development costs significantly and limit viable locations for data center construction to areas where such self-sufficient systems are technically and economically feasible.

The Protecting Communities from Data Center Impacts Act of 2026 would direct the Environmental Protection Agency to commission an independent assessment by the National Academies of Sciences, Engineering, and Medicine examining how data centers affect the environment and public health. The assessment would evaluate six specific impact areas: noise pollution, air pollution, water consumption, water supply, carbon emissions, and waste generation including electronic waste. The National Academies would be required to deliver a report with findings and mitigation recommendations to Congress within 180 days of the bill's enactment. The legislation does not impose new regulations on data center operations or restrict their development, but rather establishes a formal fact-finding effort to document impacts and propose solutions. Currently, the bill has been referred to the House Committee on Energy and Commerce, where it awaits further consideration. The measure reflects growing congressional concern about data center proliferation and its effects on communities, particularly as artificial intelligence development drives increased demand for data center capacity and infrastructure.

The Artificial Intelligence Data Center Moratorium Act would impose a freeze on construction of new data centers in the United States until Congress enacts legislation to safeguard the public from artificial intelligence risks. Introduced in June 2026 by Representative Alexandria Ocasio-Cortez and nine co-sponsors, the bill directly affects technology companies, data center developers, and AI firms seeking to build or expand computing infrastructure needed to train and deploy AI systems. The legislation is grounded in findings that cite warnings from prominent tech leaders and AI researchers about potential harms from unchecked AI development, including massive job displacement, surveillance risks, and existential dangers, though the bill excerpt does not detail what specific safeguard legislation would be required to lift the moratorium. The bill currently stands in dual committee referral to the Energy and Commerce Committee and the Foreign Affairs Committee, where it will be considered for the period and in the manner determined by the House Speaker. The moratorium approach represents a significant constraint on data center development, as these facilities are essential infrastructure for AI model training and deployment, making passage of this legislation a major pivot point for the AI industry's near-term growth trajectory. The bill's prospects depend on whether supporters can build consensus around the argument that development should pause pending regulatory frameworks, or whether opposition from the tech industry and growth-focused lawmakers will prevent advancement from committee.

The full text of this bill was not available for review, so this summary is based solely on its title and current legislative status. The bill aims to balance data center expansion with consumer protection and environmental stewardship by facilitating responsible development of data centers and related infrastructure while preventing existing utility ratepayers from bearing the costs of new large-load facilities. The legislation also seeks to incentivize water reuse investments, which reflects growing concern about data centers' substantial water consumption. The bill will likely affect data center operators, utilities, electricity and water ratepayers, and communities where large-scale facilities are proposed or developed. Its passage could significantly shape the economics and environmental standards for data center projects nationwide by establishing clearer cost-allocation rules and water conservation requirements. The bill currently stands in the early stages of the legislative process, having been referred to both the Ways and Means Committee and the Energy and Commerce Committee, where its specific provisions will be reviewed and debated before any committee action.

The AI Data Center Site Selection Transparency Act of 2026 would require developers of artificial intelligence-focused data centers to publicly disclose project details at least 180 days before construction begins, including the facility location and estimated resource needs and environmental impacts. Developers would be required to notify local officials and the public through multiple channels including press releases, social media, direct mail, physical signage, and materials in multiple languages, while also commissioning independent third-party environmental impact analyses funded by the developer. The bill restricts the use of non-disclosure agreements during the development process and prohibits their use entirely when dealing with government entities or public resources. Violations would be treated as unfair or deceptive practices under the Federal Trade Commission Act, giving the FTC enforcement authority and the ability to impose penalties on noncompliant developers. The bill affects any company planning to build, expand, or operate AI data centers in the United States, potentially creating significant delays and compliance costs during the early planning stages of major infrastructure projects. As of April 2026, the bill has been referred to the House Committee on Energy and Commerce and represents a legislative push for greater community transparency and environmental accountability in AI data center development.

The Data Center Water and Energy Transparency Act of 2026 would require data center operators running facilities with peak power demand of at least 25 megawatts to submit annual reports to their states detailing energy and water consumption, efficiency metrics, and five-year projections for resource use and efficiency improvements. States would have authority to set their own reporting requirements and could assess fees on data center operators to fund data collection efforts, while states without existing collection programs would route reports to the Environmental Protection Agency and the Departments of Energy and Agriculture instead. The bill affects all substantial data center operators nationwide, imposing significant compliance obligations including monthly tracking of energy and water usage, disclosure of power generation methods, and mandatory efficiency proposals. For the data center industry, this legislation represents a shift toward increased environmental transparency and regulatory oversight that could increase operational costs through reporting requirements and state-assessed fees, potentially influencing where companies choose to build new facilities. The bill was introduced in March 2026 and is currently in the early stages of the legislative process, having been read twice and referred to the Senate Committee on Energy and Natural Resources, where it faces an uncertain path forward. Industry professionals and policymakers will likely debate whether such transparency requirements serve legitimate environmental and public interest goals or create excessive administrative burdens on data center development.

The Artificial Intelligence Data Center Moratorium Act (S. 4214), introduced by Senator Bernie Sanders in March 2026, would impose a pause on the construction of new data centers until Congress enacts legislation to address AI safety risks. The bill's operative language, while not fully excerpted here, would directly restrict the data center development industry by prohibiting new construction projects from moving forward during the moratorium period. According to the bill's findings section, proponents cite concerns about job displacement, surveillance capabilities, and existential risks from unchecked AI development, drawing on statements from technology leaders including Elon Musk, Dario Amodei, and others warning of AI's potential consequences. The bill would affect major technology companies and investors currently planning or constructing AI infrastructure, including Mark Zuckerberg's data center project in Louisiana mentioned in the findings. As of March 2026, the bill has been read twice and referred to the Senate Committee on Commerce, Science, and Transportation, where it faces an uncertain trajectory given the significant economic and technological interests opposed to restricting data center development. The measure represents a direct regulatory challenge to the rapid expansion of AI computing infrastructure in the United States.

Senate Concurrent Resolution 30 expresses Congress's support for the Ratepayer Protection Pledge, a voluntary commitment announced on March 4, 2026, by major technology companies including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI to negotiate separate utility rate structures for their data centers rather than passing infrastructure costs to regular ratepayers. The resolution acknowledges that data centers consumed over 4 percent of U.S. electricity in 2024, with projections reaching 12 percent by 2028, and notes that under traditional utility models, households, small businesses, schools, hospitals, and farms effectively subsidize the electricity infrastructure costs of highly capitalized companies. The bill calls on federal agencies including the Department of Energy and Federal Energy Regulatory Commission to support implementation of the pledge by expediting permitting and interconnection of new energy generation resources, and encourages other technology companies to adopt similar commitments. As a concurrent resolution, this measure expresses the sense of Congress rather than establishing binding law, but it signals federal support for a policy framework that aims to protect electricity affordability for general consumers while facilitating rapid data center expansion. The resolution was referred to the Committee on Energy and Natural Resources in late March 2026 and currently awaits committee consideration. The bill reflects growing congressional concern that the AI and data center boom could strain electricity infrastructure and raise costs for ordinary Americans unless large technology companies bear the full cost of the infrastructure needed to support their operations.

The No Harm Data Centers Act, introduced in the House on March 20, 2026, and currently referred to the Committee on Energy and Commerce, would give the Federal Energy Regulatory Commission authority to set electricity rates for data centers over 50 megawatts in peak demand, ensuring those rates reflect the full costs of grid infrastructure upgrades and new generation capacity needed to support them. The bill aims to prevent data centers from shifting infrastructure costs onto residential and small commercial electricity customers by requiring utilities to charge data centers directly for all expenses related to transmission, distribution, and generation facilities built to accommodate their operations. The legislation defines covered utilities broadly but exempts rural electric cooperatives, publicly owned utilities, the Tennessee Valley Authority, and federal power marketing administrations, meaning it would primarily affect private utilities in competitive markets. For the data center industry, the bill represents a significant regulatory shift that would likely increase operational costs and make site selection more expensive in jurisdictions with high infrastructure demands, potentially slowing data center expansion in certain regions while making others more attractive by comparison. The bill's success depends on passage through the House Committee on Energy and Commerce and subsequent floor votes in both chambers, making its trajectory uncertain in a Congress that may have competing priorities around data center development and energy infrastructure investment.

The Data Center Community Impact Act would require the Secretary of Energy, in coordination with the EPA and other federal agencies, to conduct a comprehensive study examining how data centers affect communities of color and low-income communities across the United States. The study would investigate multiple impacts including water consumption, energy use from fossil fuels, air quality effects from backup generators, effects on soil and agricultural land use, impacts on electrical grid rates, wastewater system effects, job creation and displacement, tax revenue flows, property values, and public health risks related to pollution and heat island effects. The bill's findings note that data centers currently account for approximately 4.4 percent of U.S. electricity consumption with projections to reach between 6.7 and 12 percent, while water consumption for data center cooling and electricity generation totaled approximately 228 billion gallons in 2023. The legislation stems from concerns that vulnerable populations face disproportionate environmental burdens and cites the example of a large-scale data center facility built near a predominantly Black neighborhood in Memphis, Tennessee that already faced existing pollution issues. Currently, the bill has been referred to the House Committee on Energy and Commerce as of March 2026 and represents a critical juncture for data center policy in the U.S., as the study could inform future federal regulation and siting decisions for the expanding data center industry. The bill does not propose immediate restrictions but rather seeks to establish a factual record about data centers' community impacts before Congress considers further regulatory action.

The GRID Act, introduced in the Senate in February 2026, would require private data centers using 20 megawatts or more of power to generate all their energy from independent sources rather than drawing from the electrical grid, with a 180-day implementation deadline for new facilities. Existing data centers would have a 10-year transition period during which they could operate under the grid if they obtain a "Zero Rate Effect Certificate" from the Department of Energy, contingent on studies determining how the data center's infrastructure costs are allocated and ensuring residential ratepayers bear no rate increases. The bill applies to any private company or entity that owns, operates, or plans to develop a data center within the next five years, effectively requiring substantial capital investment in on-site power generation such as captive power plants or renewable energy systems. The bill matters for data center development because it would fundamentally shift the economics and feasibility of locating large facilities in the United States, potentially driving investment toward alternative jurisdictions and affecting the ability of tech companies to expand server capacity domestically. The legislation currently stands at an early stage, having been read twice in the Senate and referred to the Committee on Energy and Natural Resources as of its introduction. Bipartisan sponsorship from Senator Hawley and Senator Blumenthal suggests the bill addresses concerns that cut across traditional political lines regarding the impact of data center power consumption on electricity rates and grid stability.

The Data Center Transparency Act would require federal agencies to collect and publicly report detailed information about how data centers impact the environment and energy systems across the United States. Specifically, the Environmental Protection Agency would submit quarterly reports to Congress and the public detailing water consumption by data centers, water reuse practices, effects on local water systems including impacts on potable water availability and utility rates, and greenhouse gas emissions with particular attention to effects on overburdened communities. The Energy Information Administration would separately collect and report every six months on total energy consumption by data centers disaggregated by state, changes in energy consumption patterns, new data center openings, and any measurable effects on household energy bills and costs. The bill does not restrict data center development or impose new operational requirements on data centers themselves, but rather mandates transparency through systematic data collection and public disclosure. The legislation is currently in the early stages of the legislative process, having been introduced on January 8, 2026, by Representatives Menendez and Casar and referred to the House Committee on Energy and Commerce. For the data center industry and communities affected by data center siting, this bill matters because the required public reporting could influence where companies choose to build facilities and could provide evidence for future regulatory decisions or community advocacy regarding environmental and infrastructure impacts.

The Protecting Families from AI Data Center Energy Costs Act would require the Federal Energy Regulatory Commission to convene a technical conference within 90 days to examine how electricity rate structures can shield residential and small commercial customers from cost increases driven by large energy consumers, particularly artificial intelligence data centers. The conference would bring together federal regulators, state utility commissioners, ratepayer advocates, data center operators, and other stakeholders to discuss strategies and rate design options for managing these impacts. Within 180 days of the conference's conclusion, FERC would submit a report to Congress containing recommendations and best practices emerging from the discussion, though the bill itself does not mandate any specific regulatory changes or rate modifications. The legislation addresses a growing concern that massive new data center loads required for AI infrastructure could shift electricity costs to typical households and small businesses if rate structures remain unchanged, making it directly relevant to the expansion of data center development across the country. The bill passed a committee vote unanimously (44-0) in December 2025, indicating broad support for at least studying the issue, though its passage through the full chamber and Senate remains uncertain. Because the bill is purely informational and does not impose restrictions, taxes, or operational requirements on data centers themselves, it represents a modest first step toward potential future regulation rather than an immediate constraint on the industry.

Alabama's SB 270 establishes new criteria for the state's Public Service Commission to use when evaluating electricity contracts between utilities and large data centers requiring at least 150 megawatts of power. Under the bill, the commission must determine that such contracts serve the public interest by ensuring the data center pays for its incremental costs to the utility system and that the arrangement provides positive benefits to other utility customers. Those positive benefits are defined to include potential cost reductions for other customers, improvements to the utility's power system efficiency, and economic growth contributions to the local community. This legislation effectively lowers the regulatory barriers for approving data center utility contracts by specifying favorable criteria alongside cost recovery protections, making it easier for large data center projects to secure the long-term electricity agreements needed for development in Alabama. The bill has already been enacted and is set to take effect on October 1, 2026. The measure reflects Alabama's policy orientation toward attracting data center investment while maintaining that such facilities contribute broadly to the state's economy and utility system.

Senate Bill 250 would establish a specialized contracting framework for electric and gas utilities serving data centers in Alaska, requiring that costs incurred specifically to serve a data center be recovered directly from that customer rather than spread across all ratepayers. Under the bill, utilities must enter into formal contracts with data center customers, subject to regulatory commission approval, that clearly assign infrastructure costs, variable costs, and other service expenses directly to the data center rather than including them in general utility rates. The legislation includes specific provisions preventing data center-specific transmission infrastructure from being treated as part of the general "backbone" transmission system for cost-allocation purposes, at least during the initial contract term, which protects other utility customers from subsidizing data center operations. The bill also contains a safeguard prohibiting data center contracts from increasing the risk of inadequate fuel supplies for other utilities in the state. This framework is designed to facilitate data center development and investment by providing cost certainty and favorable terms for operators while preventing cost-shifting to residential and business customers. The bill has been heard by the House and is currently recessed pending further action by the legislative committee.

House Concurrent Resolution 28 is a procedural measure that suspends four specific rules of the Alaska State Legislature to expedite the legislative process for Senate Bill 250, which addresses data center development and utility service provisions in Alaska. The suspended rules normally govern how bill titles can be modified during the legislative process, and suspending them allows the legislature to make changes to SB 250's title without following standard procedural requirements. This type of rule suspension is a common parliamentary tool used when legislators want to accelerate consideration of a bill they view as time-sensitive or important. The resolution itself does not contain substantive policy on data centers; rather, it clears procedural pathways for SB 250 to move forward more quickly through the legislative process. The measure currently has been read for the first time in the House, indicating it is in the early stages of consideration. The suspension suggests the legislature views data center regulation and utility service issues as priorities warranting expedited procedures, though the actual policy decisions will be made through SB 250 itself.

House Bill 2456 would amend Arizona zoning law to prevent counties from restricting or regulating the construction and operation of small modular reactors when they are located alongside large industrial energy users such as data centers. The bill adds a new exemption to existing zoning restrictions, allowing these nuclear facilities to proceed in areas where the primary industrial user has already obtained all necessary zoning approvals, provided the reactor operator conducts public notice and holds at least one public comment session in the county. This measure directly addresses a regulatory barrier to small modular reactor deployment in Arizona by removing county-level zoning discretion over co-located projects, which is significant because data centers and other large industrial facilities increasingly seek on-site nuclear power to meet substantial and continuous energy demands. The legislation delegates the authority to define key terms such as "small modular nuclear reactor," "large industrial energy user," and "colocated with" to the Arizona Corporation Commission, ensuring technical definitions align with regulatory standards. The bill failed in the Arizona House of Representatives during the 2026 legislative session, indicating it did not advance to passage despite its pro-development orientation toward advanced nuclear energy infrastructure.

HR 1011 would eliminate a regulatory exemption that currently allows digital asset mining operations in Arkansas to operate without obtaining money transmitter licenses. Specifically, the bill would repeal an existing exemption in Arkansas Code that excludes both home-based digital asset miners and commercial digital asset mining businesses from being classified as "money transmitters" under the state's Uniform Money Services Act. By removing this exemption, the bill would reclassify digital asset mining activities as money transmission, effectively requiring all current and future mining operations to obtain and maintain licenses from the state under the more stringent regulatory framework. Any person or entity engaged in digital asset mining under the Arkansas Data Centers Act of 2023 would have until September 1, 2026 to apply for the required license. The bill died in House Committee during the 2026 fiscal session sine die adjournment, meaning it did not advance and is no longer active. The failure to advance reflects potential industry opposition to the additional regulatory compliance costs and licensing requirements that would burden data center operators and crypto mining businesses in the state.

This Arkansas resolution authorized the introduction of legislation that would have significantly changed the regulatory landscape for digital asset mining operations in the state. The proposed bill would have eliminated existing exemptions that currently shield home digital asset miners and digital asset mining businesses from money transmitter regulations under Arkansas's Uniform Money Services Act. Instead, the legislation would have reclassified these mining activities as "money transmission" activities, thereby requiring operators to obtain state licenses and comply with the associated regulatory requirements. The bill would have given existing mining operations until September 1, 2026, to apply for licensure under the new rules. This regulatory shift matters for Arkansas's data center sector because the state had previously enacted the Arkansas Data Centers Act of 2023 to attract cryptocurrency and digital asset infrastructure investment, and this change would have substantially increased compliance costs and operational burdens on those businesses. The resolution died in the Senate at the conclusion of the 2026 fiscal session without the proposed bill being enacted, meaning the current exemptions for digital asset miners remain in place.

The full text of this bill was not available at the time of this summary, so the following overview is based solely on the bill's title and its current legislative status. The bill addresses the intersection of data centers, labor practices, and electricity rates in California, suggesting it may establish requirements, standards, or incentives related to how data center operations affect workers and energy costs. Based on its title alone, the measure could impose labor protections or standards for data center employees, regulate electricity rates charged to data centers, or both. This legislation likely matters to data center operators and developers considering California locations, energy providers, labor organizations, and communities near proposed or existing facilities. The bill's practical impact remains unclear without access to its full text, as it could range from definitional measures to substantial regulatory or financial requirements. As of May 14, the bill was held in committee and remains under submission, indicating it has not yet advanced to a floor vote and may still be subject to amendment.

The full text of this California bill was not available at the time of this summary, so the following overview is based solely on the bill's title and its current legislative status. The bill's title indicates it addresses the relationship between water resources and data centers in California, suggesting it may establish new requirements, restrictions, or policies governing how data centers use or manage water in the state. While the specific provisions remain unknown without access to the full text, such legislation typically emerges from concerns about data center water consumption in a state that frequently faces drought conditions and competing demands for limited water supplies. The bill currently stands at an early stage in the legislative process, having been read a second time and ordered to third reading, meaning it has passed initial review but has not yet undergone floor debate or a final vote. Data center operators, environmental advocates, water agencies, and California residents in areas with significant data center development are likely stakeholders with interest in how this bill develops. As California continues to attract major technology companies and their infrastructure investments, any legislation addressing data center water use could have significant implications for the state's water management strategy and the future expansion of the industry.

The full text of this bill was not available for review, so this summary is based on the bill's title and legislative status. The bill addresses rate structures applicable to data centers in California, suggesting it would establish or modify how utilities or other service providers charge data center facilities for services such as electricity, water, or other infrastructure. The legislation likely affects data center operators, utility companies, and potentially local governments responsible for regulating these facilities. Rate structure policies matter significantly for data center development because they directly influence operational costs and the financial feasibility of locating or expanding facilities in California. The bill's neutral classification reflects that without knowing the specific rate terms being established, it is unclear whether the proposal would incentivize or discourage data center development in the state. The bill is currently in the third reading stage of the legislative process, indicating it has advanced through initial review and is moving toward a final floor vote.

The full text of this bill was not available at the time of this summary, so the following overview is based on the bill's title and legislative action. Based on its title, this bill appears to modify California's Environmental Quality Act (CEQA) to create streamlined environmental review processes for data center projects and clean energy power plants, likely designating them as "environmental leadership development projects" that may qualify for expedited or alternative review procedures. The bill would primarily affect data center developers and operators in California, along with clean energy project proponents, by potentially reducing the time and cost associated with environmental permitting. This streamlining matters significantly for data center development in California because CEQA review can substantially delay projects, and faster permitting could accelerate the state's ability to expand computing infrastructure and renewable energy capacity. The bill's current status indicates it has passed its second reading in the legislative chamber and has been ordered to third reading, placing it in the later stages of the legislative process. As the bill advances through the remaining legislative steps, stakeholders including environmental advocates, industry representatives, and local governments may continue to weigh in on whether the proposed streamlining appropriately balances development incentives with environmental protection requirements.

The full text of this bill was not available for review, so this summary is based on the bill's title and current legislative status. Based on its title, this California legislation would require data centers to disclose their water consumption, likely through regular reporting to state agencies or the public. The bill appears designed to increase transparency around data center operations, particularly regarding their use of water resources, which has become an increasingly scrutinized issue as data centers have expanded throughout California. The measure would primarily affect data center operators and owners, who would need to track and report water usage data, along-side state agencies responsible for collecting and potentially publishing this information. For California's data center development, this bill represents a moderate regulatory step that would add compliance obligations without directly restricting facility construction or operations, though increased transparency could influence future siting decisions or public perception. The bill is currently in its second reading stage in the legislature and has been ordered to proceed to third reading, indicating it remains active in the legislative process.

The full text of this California bill was not available for this summary, so the following overview is based solely on the bill's title and its current legislative status. Based on its title, this bill appears to establish or modify reporting requirements for data centers operating in California, likely requiring facility operators to provide information to state agencies on metrics such as energy consumption, water usage, employment, or other operational data. The bill would primarily affect data center developers and operators who would need to comply with new or revised reporting obligations. This type of transparency measure is relevant to California's ongoing efforts to monitor and regulate the data center industry, particularly given concerns about energy demand, cooling water usage, and environmental impacts in the state. The bill has advanced through the legislative process and is currently ordered for third reading, indicating it has passed initial committee review and is progressing toward a final vote in its chamber of origin. Once the full text becomes available, a more detailed analysis of the specific reporting requirements and their implications would be possible.

The full text of this California bill was not available for review, so this summary is based on the bill title and its current legislative status. The bill, titled "Electricity: data centers," appears to address regulatory or definitional matters related to how data centers interact with California's electricity system, though the specific provisions cannot be determined from the title alone. Based on its neutral classification, the bill likely contains procedural or technical provisions rather than new incentives or major restrictions on data center development. The legislation would potentially affect data center operators, electricity providers, and state energy regulators in California as it moves through the legislative process. Understanding the bill's specific provisions will be important for industry stakeholders, as California plays a central role in data center development and energy policy on the West Coast. The bill has advanced to its third reading in the legislature, indicating it has passed initial procedural steps and is progressing toward a final floor vote.

HB26-1030 would establish a new Colorado Data Center Development Authority to administer a tax incentive program designed to attract large-scale data center investments to the state. The bill offers qualified data center operators a 100 percent exemption from Colorado state sales and use taxes on data center infrastructure and equipment for 20 years, potentially extensible for an additional 10 years, contingent on meeting strict certification requirements including a minimum $250 million investment commitment, job creation targets, prevailing wage compliance, energy efficiency standards, and water stewardship practices. To receive certification, data center operators must demonstrate coordination with local utilities regarding interconnection and capacity planning, ensuring that infrastructure development aligns with the state's grid modernization goals. The bill also creates a nine-member authority board with representation from the governor, state energy office, legislature, labor organizations, and clean energy sectors to review applications and enforce ongoing compliance through annual reporting requirements. Currently, the bill has been postponed indefinitely by the House Committee on Energy and Environment, meaning it is no longer moving forward in the legislative process at this time. The legislation represents a significant effort to position Colorado as competitive in the data center market while attempting to balance economic development incentives with workforce protections and environmental considerations.

Senate Bill 26-102 would establish comprehensive requirements for large-load data centers in Colorado, defined as new facilities with peak loads exceeding 30 megawatts or existing facilities adding more than 30 megawatts of capacity. Beginning January 1, 2031, operators would be required to match 100 percent of their annual electricity consumption with renewable energy and to meet an hourly matching requirement to be determined by the Public Utilities Commission, with compliance verified before utilities can interconnect or supply power to these facilities. The bill imposes significant financial obligations on data center operators, including mandatory 15-year contracts with utilities to cover infrastructure and resource costs, contributions to demand-side management programs, and water management compliance, while prohibiting utilities from offering economic development rates to these facilities. Local governments would be required to implement model codes for data center development by June 2027, and developers siting facilities in disadvantaged communities would need to conduct cumulative impacts analyses at their own expense. Data center operators must also submit detailed site assessments and annual reports on electricity and water consumption to the state, with reporting beginning by June 2028. The Senate Committee on Transportation and Energy recently voted to postpone the bill indefinitely, which effectively halts its progress and suggests significant legislative resistance to the proposed regulatory framework.

The full text of this Delaware bill was not available for review at the time this summary was prepared. Based on its title and legislative history, the measure amends multiple sections of Delaware Code (Titles 9, 22, and 29) to modify regulations affecting data centers, suggesting comprehensive changes across several legal frameworks rather than a single targeted adjustment. The bill's passage in the House with strong support (37 yes votes against only 3 no votes and 1 absence) indicates broad legislative backing, though the specific nature of the amendments cannot be confirmed without access to the full text. The changes likely affect data center operators, property owners, municipal governments, and potentially utility providers in Delaware, as modifications to three separate code titles suggest the legislation addresses multiple aspects of data center development and operations. This legislation matters for Delaware's data center sector because it signals potential regulatory reforms that could facilitate or constrain industry growth, affect operational costs, or reshape local permitting processes. The bill has passed the House and now moves forward in the legislative process, with its ultimate effect on the state's data center landscape dependent on the specific provisions contained within the full text.

The full text of SB 353 was not available for this summary, so the following overview is based solely on the bill's title and legislative history. Based on its title, this bill would amend Delaware law to establish or modify a moratorium on data center development, which would restrict or delay new data center construction projects within the state. Such a moratorium would directly affect data center operators, technology companies planning facility expansions, and potentially the communities where these facilities would have been located. The measure reflects ongoing debates about data center development in Delaware, touching on concerns that may include environmental impact, energy consumption, local community effects, or infrastructure strain. As of the latest legislative action, the Delaware Senate voted 6 to 15 against a motion to suspend rules that would have allowed immediate consideration of the bill, indicating the measure faces significant opposition in the chamber. The bill's current status is uncertain given this failed procedural vote, though it could potentially be considered again through standard legislative processes.

Florida's SB 484, enacted as Chapter 2026-65, implements four major changes to facilitate data center development while maintaining public transparency and fair utility cost allocation. First, the law prohibits state and local agencies from entering into nondisclosure agreements that would hide information about potential data center projects from the public, with violators subject to civil fines up to $1,000. Second, it affirms that local governments retain their zoning and land development authority over data centers as "large load customers" while preventing them from imposing arbitrary restrictions on such facilities. Third, it requires the Florida Public Service Commission to establish clear tariff and service requirements ensuring that data centers bear their own costs of service without shifting expenses to other utility ratepayers. Fourth, it streamlines water permitting for large-scale data centers by establishing criteria under which water management districts must issue consumptive use permits, while allowing authorities to mandate the use of reclaimed water when feasible. These provisions collectively remove procedural barriers to data center projects while introducing mechanisms to ensure transparent decision-making, equitable cost allocation among utility customers, and responsible water resource management. Now that the bill has been enacted into law, these requirements will directly shape how data center operators, local governments, utilities, and environmental agencies interact in Florida going forward.

Hawaii House Resolution 196 requests the state's Energy Office to establish a working group that would study potential impacts of large data centers (defined as requiring five megawatts or more of electricity) on Hawaii's grid, ratepayers, water resources, and climate goals. The working group would include representatives from state energy and business offices, the Public Utilities Commission, utilities, consumer advocates, environmental organizations, and other stakeholders, with the state's Chief Energy Officer serving as chair. The resolution directs this group to examine regulatory safeguards and policy options, including mechanisms to ensure data center developers pay for necessary grid infrastructure upgrades, protections for residential and small-business ratepayers from cost increases, transparency requirements for power consumption and emissions, and strategies to mandate renewable energy use. While Hawaii has not yet received proposals for hyperscale data centers, the resolution emphasizes the state's particular vulnerability given its isolated island grids, water constraints, and constitutional duty to protect water resources, alongside concerns that rapid AI infrastructure expansion nationally could eventually reach the islands. The bill was reported out of the Finance Committee with a recommendation for adoption, indicating it has advanced through the legislative process. This proactive study approach reflects Hawaii policymakers' concerns about protecting residents and environmental resources while preparing potential regulatory frameworks before any major data center proposals materialize.

Senate Concurrent Resolution 95 requests that Hawaii's State Energy Office convene a working group to study how large data centers, particularly energy-intensive artificial intelligence and cloud computing facilities, would affect the state's electric utilities, ratepayers, water resources, and climate goals. The working group would include representatives from state agencies, utilities, consumer and environmental organizations, energy developers, and other stakeholders, with the state's Chief Energy Officer serving as chair. The resolution directs the working group to examine potential regulatory safeguards and policy options, including mechanisms to ensure data center developers pay the full cost of required infrastructure upgrades, protections for residential and small business ratepayers from increased electricity costs, and requirements for transparency regarding electricity consumption, water usage, and greenhouse gas emissions. Although Hawaii has not yet received proposals for hyperscale data centers, the resolution emphasizes that the state's isolated island grids are particularly vulnerable to large new electricity loads and that proactive planning is needed to protect ratepayers and align development with renewable energy and climate objectives. The bill is currently referred to the Energy and Environmental Protection Committee and the Finance Committee, suggesting it is in the early stages of consideration. The resolution reflects growing concerns across the United States about whether data center developers should bear infrastructure costs rather than passing them to existing electricity consumers.

Hawaii House Concurrent Resolution 206 requests the Hawaii State Energy Office to establish a working group that would study the potential impacts of large data centers (defined as those requiring five megawatts or more of instantaneous electricity demand) on the state's electric utilities, ratepayers, water resources, and climate goals. The working group would include representatives from state energy and economic development offices, the Public Utilities Commission, electric utilities, consumer advocacy organizations, and environmental groups, with the goal of examining regulatory safeguards and policy mechanisms to ensure that data center developers bear the full costs of required infrastructure upgrades rather than shifting those expenses to existing utility ratepayers. The resolution's extensive preamble highlights specific concerns about data centers' substantial electricity and water consumption, potential grid reliability risks on Hawaii's isolated island electric systems, possible increases in greenhouse gas emissions if fossil fuel generation is expanded to meet data center demand, and the potential for cost-shifting to residential and small-business customers. The working group would examine mechanisms to protect ratepayers from increased electricity costs, require transparency regarding data center resource consumption and emissions, and align any future development with Hawaii's renewable energy and climate commitments. Having been adopted by the House and transmitted to the Senate, the resolution reflects Hawaii's proactive approach to evaluating data center regulation before any major proposals materialize in the state. The bill's adoption signals legislative concern about data center impacts but does not itself impose regulations; rather, it establishes a framework for state agencies to develop potential future policy safeguards.

Senate Resolution 90 requests that Hawaii's State Energy Office establish a working group to study how large data centers would affect the state's electricity system, water resources, utility costs, and climate commitments. The resolution acknowledges that while Hawaii has not yet received proposals for major data center facilities, rapid national growth in artificial intelligence infrastructure makes such proposals increasingly likely, and the state's isolated island electric grids face unique vulnerabilities to large new power demands. The working group, chaired by Hawaii's Chief Energy Officer and including representatives from utilities, the Public Utilities Commission, consumer and environmental organizations, and the data center industry, would examine potential regulatory safeguards such as requiring developers to fund their own grid upgrades, protecting ratepayers from increased electricity costs, establishing transparency requirements for water and emissions reporting, and ensuring facilities use renewable energy. The resolution reflects significant state-level concern that without appropriate protections, data center developers could shift infrastructure costs to existing residents and small businesses while consuming substantial water resources and potentially increasing greenhouse gas emissions. The resolution passed as of May 12, 2026, based on the latest legislative action recorded, and establishes a framework for proactive policymaking rather than waiting to respond reactively to specific development proposals.

House Bill 897 amends Idaho's sales and property tax exemptions for data center equipment and facilities, with a significant cutoff date that restricts eligibility for new projects. Under current law, qualifying data center operators can claim a 20-year tax exemption on both eligible server equipment and new data center buildings if they meet investment and job creation thresholds of at least $250 million in capital investment and 30 new jobs. The bill narrows this exemption by eliminating the tax break for new data center facility buildings (the physical structures themselves) for any projects that commence construction on or after April 1, 2026, meaning future data center operators would only qualify for exemptions on server equipment and related technology rather than the buildings that house them. This change affects data center developers and operators considering projects in Idaho after the April 2026 deadline, potentially increasing their tax burden and making Idaho less competitive for attracting large data center investments compared to other states. The legislation is currently referred to the Revenue and Taxation Committee for a concurrence recommendation, indicating it has passed initial consideration and is under further review. For industry observers and policymakers, this bill represents a significant policy shift that could reshape the economics of future data center development in Idaho and alter the state's incentive structure for attracting technology sector investments.

The full text of this Idaho legislation was not available for review at the time of this summary. Based on the bill title and legislative record, this measure establishes new restrictions on how much water data centers can consume for cooling operations, adding limitations to existing state law. The bill affects data center operators and developers considering projects in Idaho, particularly those relying on water-intensive cooling systems. This legislation matters for data center development in the state because water availability and usage restrictions can significantly impact the feasibility and cost of building and operating large data centers, which typically require substantial cooling resources. The bill was signed by the Governor on April 2, 2026, and becomes effective on July 1, 2026, making it binding law in Idaho. Those seeking detailed information about the specific water consumption limits, exemptions, and enforcement mechanisms should consult the full bill text once it becomes publicly available.

HB5755 would require Illinois municipalities to hold at least one public hearing before approving any data center siting application, with notice published in local newspapers and opportunities for public testimony and cross-examination of witnesses. The bill also establishes a "back-door referendum" mechanism that would allow 15 percent of voters in a municipality to petition for a public vote on any data center siting approval, with such referendums to be held at the next regularly scheduled election within 60 days of the application notice. The law would apply to facilities with a combined connected load of 5 megawatts or greater that provide digital data storage and processing services, as well as qualifying Illinois data centers under existing state tax incentive programs. This legislation would significantly impact data center development in Illinois by adding procedural requirements and giving local populations the ability to override municipal approval decisions, potentially slowing project timelines and creating uncertainty for developers. The bill was introduced on May 5, 2026, and has been referred to the Rules Committee, where its path forward depends on committee action and broader legislative priorities. Industry observers expect this measure would face opposition from data center developers and technology companies seeking to expand operations in Illinois, while receiving support from community groups concerned about local impacts of large industrial facilities.

SB4206 would grant Illinois counties and municipalities broad authority to regulate data center development through local ordinances, establishing standards for construction size, height, design, and the number of facilities allowed in geographic areas. The bill imposes a 3-mile buffer zone around municipal boundaries, preventing data centers from locating within that distance without explicit written consent from neighboring municipalities, and extends regulatory jurisdiction to areas 1.5 miles beyond municipal zoning boundaries. Counties and municipalities would also gain power to impose water withdrawal limitations, require water conservation systems, prevent contamination, and establish noise mitigation requirements for data centers. Any existing county data center zoning ordinances in effect before the bill's enactment would be permitted to remain in place, and all siting decisions would require at least one public hearing with newspaper notice within 30 days. The bill is currently referred to Assignments in the Illinois General Assembly and would significantly reshape the regulatory landscape for data center development in the state by shifting control from the state level to local governments, potentially creating substantial obstacles for facility siting. For industry professionals and developers, this legislation represents a major constraint on project feasibility, as data center placement would become dependent on securing approval from multiple overlapping local jurisdictions rather than operating under streamlined state guidelines.

Senate Bill 3120 amends Illinois's data center tax incentive program by adding a new water stewardship documentation requirement for facilities seeking to qualify for substantial tax credits and exemptions. Under the bill, both new and existing data centers must now provide detailed information about their water stewardship strategies as part of their application process, including documentation of whether they use closed-loop cooling systems or treated municipal wastewater, when they adopted these strategies, and proof of sustained implementation. The Department of Commerce and Economic Opportunity must also include these water stewardship details in its annual reports to the state legislature and governor, creating transparency around how incentive recipients manage water resources. The bill affects any data center operator seeking to participate in Illinois's existing incentive framework, which currently requires at least $250 million in capital investment, creation of at least 20 high-wage jobs, and achievement of carbon neutrality or green building certification. The measure represents a procedural addition to an already pro-development incentive structure rather than a new barrier to participation, as water documentation is added alongside existing requirements rather than creating new disqualifying conditions. The bill is currently in the Senate Committee on Assignments following adoption of a committee amendment, indicating it remains in the early to middle stages of the legislative process.

Illinois Senate Bill 3830 would establish new regulatory requirements for data centers operating in the state, primarily focusing on water management and environmental monitoring. The bill requires all data centers discharging water to wastewater treatment plants to identify likely pollutants in their water discharge, monitor those pollutants, and maintain detailed records of pollutant levels, effective January 1, 2027. Additionally, all data centers would be required to track and annually disclose their water consumption data to the Illinois Department of Natural Resources, which would publish aggregated and anonymized versions of this data publicly. Data centers that fail to comply with these disclosure requirements face financial penalties of up to $10,000 per violation, with the Department of Natural Resources and Illinois Commerce Commission responsible for developing implementing rules. The bill also creates a data center self-direct program allowing certain customers to receive reduced charges for renewable energy procurement based on their contribution to clean energy generation. As of the latest legislative action, the bill has been re-referred to Assignments following Senate Committee Amendment No. 2, indicating it remains in the early stages of the legislative process and faces an uncertain path forward.

Senate Bill 3761 would establish new regulatory requirements and compliance mechanisms for data centers operating in Illinois, effective January 1, 2027. The bill requires data center operators to submit detailed disclosure statements to the Illinois Commerce Commission at least 180 days before beginning construction, while all operating data centers must track and annually report their water consumption to the Department of Natural Resources, with aggregated data to be made publicly available online. To offset these regulatory burdens, the legislation creates a data center self-direct program allowing facilities to receive reductions in renewable energy procurement charges if they meet specified clean energy generation requirements, with the reduction amount increasing based on the facility's contribution to new additive clean energy. Non-compliance with disclosure requirements carries penalties of up to $10,000 per violation, and both the Department of Natural Resources and Illinois Commerce Commission must adopt implementing rules. The bill is currently in the Illinois Senate's Rules Committee and has been re-referred to Assignments, indicating it has not yet advanced beyond the early procedural stage. The high-confidence anti-sentiment classification reflects that the regulatory obligations and penalty structure appear to outweigh the financial incentives available to data center operators, though the ultimate impact on the industry depends on how aggressively these requirements are enforced and how valuable the renewable energy charge reductions prove to be.

SB2181, introduced in February 2025, would establish mandatory annual reporting of energy and water consumption for all data centers operating in Illinois, with reports due to the Illinois Power Agency by March 31 each year beginning in 2026. Data centers failing to submit required reports would face fines up to $10,000 per violation, with collected penalties deposited into the Energy Efficiency Trust Fund. The bill requires detailed disclosure of monthly energy consumption by source type and monthly water usage for cooling and other applications, along with information about efficiency improvements undertaken during the previous year. Beyond reporting requirements, the legislation directs the Illinois Power Agency to conduct a comprehensive study within 12 months examining how data centers affect electricity rates for residential, commercial, and industrial customers, environmental impacts, and potential legislative solutions to mitigate negative effects on ratepayers. The bill allows proprietary information to remain confidential while requiring the Agency to publish aggregated, anonymized data annually along with legislative recommendations. Currently in the Senate Committee on Assignments following a committee amendment, SB2181 has been classified as anti-industry legislation due to its regulatory burden and investigative focus on data center impacts, which could influence future restrictions on data center development in the state.

HB5513, introduced in February 2026 by Rep. Robyn Gabel and currently cosponsored by Rep. Debbie Meyers-Martin among others, would establish comprehensive new environmental, water, and energy regulations specifically targeting hyperscale data centers in Illinois. The bill amends multiple state statutes to require data centers to undergo cumulative impact assessments, enter into community benefits agreements, submit to Water Impact Permits with public hearings and 5-year renewal cycles, and pay annual fees based on peak energy demand, with revenues funding community intervenor compensation and public benefits programs. Data centers would also face mandatory quarterly water usage reporting, stringent energy code compliance, and annual energy and water reporting to the Illinois Commerce Commission, while the bill prohibits operators from using nondisclosure agreements to conceal community impacts. The legislation also establishes new renewable energy procurement programs and creates the Residential Automated Solar Permitting Platform Act, requiring municipalities to adopt automated solar permitting by July 2027. For data center development in Illinois, the bill would represent a significant regulatory shift that imposes substantial compliance costs and procedural requirements that industry representatives contend would discourage new facility construction and expansion. As evidenced by the recent addition of Rep. Meyers-Martin as a cosponsor, the bill continues to build legislative support in the 104th General Assembly.

Illinois Senate Bill 4016, introduced in February 2026, would establish comprehensive new regulatory requirements for hyperscale data centers operating in the state by amending multiple environmental and energy statutes. The legislation mandates that data centers undergo cumulative impact assessments, enter into community benefits agreements with affected areas, and comply with stringent water resource management including quarterly usage reporting and Water Impact Permits renewable every five years. Data centers would also be required to meet enhanced energy efficiency codes, procure renewable energy according to state standards, and pay annual fees based on their peak demand to fund two new state accounts: the Data Center Community Intervenor Compensation Fund and the Hyperscale Data Center Public Benefits and Affordability Fund. Additionally, the bill addresses residential solar development by requiring municipalities and counties to adopt automated solar permitting platforms by July 1, 2027, with provisions allowing civil action against non-complying jurisdictions. The bill has gained momentum in the legislature with the recent addition of Senator Karina Villa as a co-sponsor, indicating potential support for advancing these substantial new burdens on large data center operations. For Illinois, which has attracted significant data center investment, this legislation would represent a significant shift toward stricter environmental oversight and community protections, likely affecting the economics and feasibility of future hyperscale data center projects in the state.

SB4203 would add a new requirement to Illinois' data center tax incentive program that obligates qualifying data center operators to negotiate and execute community benefit agreements with their host municipalities or counties as a condition of receiving and maintaining tax exemption certificates. Under this requirement, operators must make minimum annual payments equal to at least 10% of the property taxes that would normally be owed on the data center facility, with at least half of those payments directed to provide tax relief for eligible homestead property owners in the community. The bill affects major data center projects that meet existing qualification thresholds, including a minimum capital investment of $250 million over 60 months and creation of at least 20 jobs at above-average wages, and would effectively reduce the net tax benefit these facilities currently enjoy while generating community revenue. For data center development in Illinois, this represents a significant policy shift that could impact the competitiveness of the state's data center incentive package compared to other jurisdictions, as the mandatory community payments would add operational costs to projects that currently benefit from substantial tax breaks. The bill was introduced on May 13, 2026, by Senator Sue Rezin and recently added Senator Erica Harriss as a co-sponsor, indicating potential momentum in the legislative process. The measure takes effect immediately upon enactment if passed.

Senate Bill 3578, the Data Center Construction by Foreign Adversaries Act, would prohibit foreign-owned or foreign-headquartered companies from building data centers in Illinois unless they obtain joint certification from three state agencies proving their facility uses only self-generated power and will not strain regional electrical grids operated by PJM or MISO. The bill defines "foreign company" as any entity at least 51 percent owned by a foreign adversary or headquartered in a country designated as a foreign adversary under federal regulations, with the definition encompassing majority-owned subsidiaries and affiliates of such entities. The certification requirement creates a regulatory approval process that would apply only to foreign companies, not domestic competitors, effectively requiring foreign entities to clear an additional hurdle before pursuing data center development projects in the state. The measure reflects growing concerns about energy consumption from data centers, which consume substantial electricity for cooling and operations, and about foreign control of critical computing infrastructure, though the practical impact of the bill would depend on how state agencies define and evaluate compliance with the certification criteria. With Senator Darby A. Hills recently added as a co-sponsor alongside the bill's original introducer Senator Sue Rezin, the legislation appears to be gaining support in the state senate, though its prospects in the full chamber and potential gubernatorial action remain unclear. For the data center industry and foreign investors considering Illinois locations, the bill would add significant uncertainty and compliance costs to project development, potentially steering foreign capital toward other states with less restrictive policies.

Kansas Senate Bill 92 extends the expiration date for existing state provisions that allow electric utilities to refuse parallel generation service to certain large load customers and to exclude those customers from peak demand calculations. The bill amends Kansas law governing distributed energy systems, which are customer-owned systems that can export excess power back to the utility grid, by maintaining the current regulatory framework that gives utilities discretion in how they serve high-capacity customers. While the bill itself is largely procedural and does not create new incentives or restrictions, the underlying law it extends is relevant to data centers because large data center operations typically qualify as the "large load customers" referenced in the legislation and may be affected by a utility's decision to deny or limit parallel generation services. The bill does not fundamentally alter data center development incentives in Kansas but preserves the status quo regulatory environment in which utilities retain flexibility in managing service to major industrial customers including data center operators. As of April 3, 2026, the bill was enrolled and presented to the Kansas Governor, indicating it has completed legislative passage and is awaiting executive action. The neutral policy classification reflects that this is primarily a technical extension of existing law rather than a substantive policy shift that would meaningfully accelerate or impede data center development in the state.

Senate Bill 531 would prohibit the installation, construction, and operation of new large load data centers (those requiring 10 megawatts or more of monthly electrical demand) in any Kansas county that has experienced a drought emergency declaration within the preceding three years. The bill targets water consumption concerns by restricting data center development in counties experiencing water stress, with county commissioners required to deny permits for such facilities during the three-year period following a drought emergency declaration. The prohibition would not apply to data centers already installed or permitted before July 1, 2026, preserving existing projects and those in the pipeline at the time of enactment. For Kansas, which has experienced increasing drought conditions in recent years and seeks to attract data center investment as an economic development tool, this bill represents a significant constraint on that industry's growth in water-stressed regions. The measure died in committee during the 2026 legislative session, indicating it did not advance for a floor vote and reflects either lack of legislative support or competing priorities among lawmakers. The bill's failure suggests that either Kansas policymakers did not prioritize water conservation restrictions on data centers or that industry stakeholders successfully lobbied against the measure.

Senate Bill 526 would have restricted Kansas' existing sales tax exemption for qualified data centers by adding a geographic zoning requirement to eligibility criteria. Specifically, the bill would require any data center seeking the tax exemption to be located on land that was zoned for industrial or manufacturing uses as of July 1, 2025, applying only to areas that were subject to local zoning regulations on or before that date. This effectively narrows where data center developers can build while still accessing the state's tax incentive, potentially limiting project flexibility and site selection options for the industry. The bill died in committee during the 2026 legislative session, meaning it did not advance for a floor vote and will not become law unless reintroduced in a future session. For data center operators and developers in Kansas, the failed bill suggests that while the current exemption remains intact without the zoning restriction, policymakers are considering imposing location-based limitations on these incentives. The outcome reflects ongoing legislative tension between offering competitive tax incentives to attract data center investment and controlling where such facilities can be developed within the state.

Senate Bill 400 would have required large data centers in Kansas, defined as facilities with a monthly maximum electrical demand of 20 megawatts or more, to use closed-loop cooling systems rather than open-loop systems that discharge water vapor to the atmosphere. The bill aimed to reduce the water consumption footprint associated with operating data centers in the state by prohibiting the use of cooling systems that directly expose or discharge water to the ambient air. Enforcement would have been handled through the courts, allowing the state attorney general or local prosecutors to seek injunctions against facilities violating the requirement. The legislation matters for data center development in Kansas because it would have imposed significant operational and capital requirements on new and existing large facilities, potentially increasing construction and operating costs while limiting flexibility in cooling system design. The bill died in committee during the 2026 legislative session, meaning it did not advance for a full vote and will not become law unless reintroduced in a future session. For industry stakeholders and policymakers, this outcome reflects ongoing tension between water conservation goals and the economic incentives of attracting data center investment to the state.

House Bill 1206 would establish new state-level regulation of water usage at large data centers in Louisiana, requiring facilities designed to operate at 100 megawatts or more and consuming over 100 million gallons of water annually to obtain permits from the Department of Environmental Quality. The permitting process would mandate that data center operators submit detailed information about their water needs, sources, and quality requirements, while the department would evaluate applications based on impacts to public health, aquatic ecosystems, and local water availability, as well as the applicant's plans for water conservation technologies such as recycling systems, reclaimed water use, or closed-loop cooling. Before issuing any permit, the department would be required to notify affected parish governments and hold a public hearing to allow community input on proposed projects. Additionally, data centers would face quarterly reporting obligations to document their water consumption, sources, and efficiency metrics, with the department authorized to establish fees for permit applications and inspections. This legislation would apply specifically to the data center industry and represents a significant new regulatory framework for a sector that has historically operated with minimal water-use restrictions in Louisiana. The bill is currently in the House Committee on Natural Resources and Environment following its initial referral, with no further action recorded to date.

The full text of this bill was not available for review, so this summary is based solely on its title and legislative history. According to its title, the bill would create new legislation requiring that local union labor be prioritized during the construction of enterprise data centers in Michigan. The measure appears designed to ensure that construction jobs associated with data center projects benefit local union workers, potentially affecting both data center developers and construction labor markets in the state. For data center development, this requirement could increase construction costs and project timelines, as developers would need to coordinate with local union hiring requirements rather than selecting contractors freely. The bill is currently tied to two companion measures, HB 5785'26 and HB 5787'26, suggesting a coordinated legislative approach to data center labor standards. As of April 14, 2026, the bill has been electronically reproduced but has not advanced to subsequent legislative stages.

The full text of this bill was not available for review, so this summary is based on the bill's title and legislative history. The legislation appears to amend Michigan's use tax code to create a tax exemption for enterprise data centers that meet specific construction labor standards outlined in Michigan's enterprise data center construction labor act. The exemption would likely apply to equipment, materials, or services used in building or operating qualifying data centers, potentially reducing the tax burden on companies that comply with prevailing wage or other labor requirements. This bill matters for data center development in Michigan because tax incentives can significantly influence where companies choose to locate facilities and invest capital, and this measure ties those benefits to adherence to labor standards, balancing economic development with worker protections. The bill is tied to two companion measures, HB 5786 and HB 5787, suggesting a coordinated legislative approach to data center policy. As of April 14, 2026, the bill has been electronically reproduced and remains in the early stages of the legislative process.

The full text of this bill was not available for review, so this summary is based on the bill title and legislative history alone. This Michigan legislation would amend the Public Utilities Act by adding a new section that requires contracts for data center services to be processed as "contested cases" under state utility law. Contested case procedures typically involve formal hearings, evidence presentation, and judicial review, processes that are more extensive than standard regulatory approvals. This change would likely affect data center operators, utility companies, and developers seeking to establish or expand data center facilities in Michigan by introducing additional procedural steps and potential delays to contract approval processes. The increased regulatory burden could impact the timeline and cost of data center projects in the state, potentially affecting Michigan's competitiveness in attracting data center investment compared to other jurisdictions. As of May 14, 2026, the bill has been electronically reproduced in the legislative system but has not advanced to a vote or further action.

The full text of this Michigan bill was not available at the time of this summary, so the following overview is based solely on its title and current legislative status. The bill proposes amending Michigan's public utilities law to add a moratorium provision that would prevent the Michigan Public Service Commission from approving new enterprise data center projects. This restriction would directly affect technology companies, data center operators, and investors planning to build or expand data center facilities in Michigan, as well as potentially impact communities where such facilities might otherwise locate. The moratorium matters significantly for Michigan's data center development trajectory, as it would halt new projects during a period when data center investment is occurring across many states competing for this economic activity. Currently, the bill has been referred to the House Committee on Government Operations, where it will be reviewed before any further legislative action. The proposal reflects policy concerns about data center development in the state, though the specific rationale for the moratorium is not evident from the title alone.

The full text of this bill was not available at the time of this summary. Based on the bill title and legislative history, this measure appears to amend Michigan's zoning enabling act to bring it under the authority of the state's Data Center Regulation Act. The bill would likely affect local zoning boards, data center developers, and municipalities across Michigan by establishing a statewide regulatory framework for how data centers can be sited and approved within local jurisdictions. This change matters because it could streamline the approval process for data center projects, though the exact impact depends on whether the Data Center Regulation Act contains requirements that facilitate or restrict development. The bill is currently referred to the House Committee on Government Operations. A companion bill, SB 1018, has been introduced in the Senate, suggesting this represents a coordinated legislative effort to standardize data center regulation at the state level.

The full text of this Michigan bill was not available for this summary, so the following overview is based solely on the bill's title and legislative history. The bill would create a new law establishing a moratorium on approvals for and operation of new data centers in Michigan, effectively pausing the development and launch of data center facilities in the state for an unspecified period. This legislation would directly affect data center companies seeking to build or operate new facilities in Michigan, as well as communities considering such projects. The moratorium is significant for Michigan's data center development landscape because it would halt growth in a sector that has increasingly attracted investment and generated economic activity in recent years. The bill is currently referred to the House Committee on Government Operations, which suggests it is in early stages of consideration. The bill's tie bar connection to SB 1019 indicates it may be coordinated with related legislation that could provide additional context or provisions regarding data center regulation in the state.

The full text of this bill was not available for review, so this summary is based on the bill title and legislative history. HB 6140'26 would amend Michigan's public utilities law to establish specialized electricity rates for large load commercial data centers, a category of facilities that consume substantial amounts of power. Based on the bill title and its tie-bar connection to six related bills, this legislation appears to be part of a coordinated package of measures designed to support data center development in Michigan by reducing their operating costs through favorable utility pricing. The bill likely affects utility companies operating in Michigan, data center operators and developers considering investments in the state, and potentially electricity consumers more broadly, depending on how rate structures are adjusted. For Michigan's economic development, such rate incentives could make the state more competitive in attracting data center projects, which bring capital investment, job creation, and tax revenue. The bill was electronically reproduced on June 25, 2026, and remains in the early stages of the legislative process with no further action documented since that date.

The full text of this Michigan bill was not available for review at the time of this summary. Based on its title, the legislation would create new water usage requirements and restrictions applicable to data centers operating in the state. The bill appears designed to regulate how data centers consume water, a significant operational input for cooling systems in these facilities. This measure would likely affect existing data center operators and companies considering new facility development in Michigan, potentially increasing compliance costs and operational constraints. Water usage regulations matter for Michigan's data center industry because they could influence the economic competitiveness of locating facilities in the state compared to other jurisdictions with less stringent requirements. As of June 25, 2026, the bill has been electronically reproduced and is tied to at least six companion bills (HB 6135, 6137, 6139, 6140, 6141, and 6142), suggesting this represents part of a broader legislative package addressing data center operations.

The full text of this bill was not available for this summary, so the following overview is based on the bill title and legislative history. This Michigan legislation would add new requirements to state business law governing how data centers must be decommissioned, dismantled, and remediated at the end of their operational life. The bill appears designed to establish standards and procedures for the environmental and infrastructure cleanup obligations that data center operators must fulfill when closing facilities. This measure would directly affect data center companies operating in Michigan, potentially increasing their long-term operational costs and compliance responsibilities. The legislation matters for data center development in Michigan because decommissioning requirements can significantly influence the economic feasibility of new projects and the total cost of facility ownership over decades. The bill was electronically reproduced on June 25, 2026, and is tied to at least six companion bills in the House, suggesting it is part of a broader legislative package addressing various aspects of data center regulation in the state.

The full text of this bill was not available at the time of this summary. Based on the bill title and legislative history, this measure would create a new law prohibiting public employees and officers from entering into nondisclosure agreements related to data center construction projects in Michigan. The bill appears designed to increase transparency around data center development by preventing government officials from being bound by confidentiality provisions that would restrict their ability to disclose information about such projects to the public. This legislation would likely affect data center developers, local governments, and community members by changing how information about large-scale data center projects can be shared during the planning and construction phases. The measure is currently tied to six other related bills (HB 6135'26, HB 6141'26, HB 6137'26, HB 6138'26, HB 6142'26, and HB 6139'26), suggesting it is part of a broader legislative package addressing data center development in the state. As of June 25, 2026, the bill was electronically reproduced in the legislative system and remains in early stages of the legislative process.

The full text of this Michigan bill was not available at the time of this summary, so analysis is based solely on the bill title and legislative record. The measure would create a new law requiring certain data centers to enter into community benefit agreements, which are negotiated deals between developers and local communities that typically address concerns such as local hiring, infrastructure improvements, and environmental protections. The bill appears designed to give communities a formal mechanism to negotiate directly with data center operators over the projects' local impacts and contributions. This legislation would likely affect large-scale data center projects in Michigan and could increase development timelines and costs by requiring operators to negotiate and potentially fund community-requested benefits as a condition of operation. The bill is tied to at least six companion measures (HB 6135, HB 6136, HB 6138, HB 6139, HB 6140, HB 6141, and HB 6142), suggesting this is part of a broader legislative package addressing data center regulation in the state. As of June 25, 2026, the bill has been electronically reproduced but has not yet advanced to substantive consideration.

The full text of this bill was not available for review, so this summary is based on the bill title and legislative history. According to its title, the bill would amend Michigan's public utilities law to require project labor agreements (PLAs) for certain data center contracts involving electric utilities. Project labor agreements are comprehensive labor contracts negotiated before construction begins that typically establish wages, benefits, and working conditions for all workers on a project. The bill would likely apply these requirements to data center development projects that have some connection to utility infrastructure or utility involvement, though the specific scope cannot be confirmed without the full text. This requirement could significantly affect data center developers and electric utilities in Michigan by increasing upfront planning requirements and potentially raising construction costs. The bill is currently in the early stages of the legislative process, having been electronically reproduced in late June 2026, and is tied to several companion bills that may address related aspects of data center development policy.

The full text of this bill was not available for review, so this summary is based on the bill's title and legislative history. The bill would amend Michigan's zoning enabling act to make it subject to a data center community benefit agreement act, suggesting the legislature is creating a framework that links local zoning decisions for data centers to negotiated community benefit agreements. This legislation likely affects municipalities, data center developers, and residents in areas where data centers might be located, as it would establish a process for communities to negotiate benefits in exchange for approving data center projects. For Michigan's data center industry, this represents a structured approach to development that attempts to balance economic opportunity with community input rather than relying solely on local zoning restrictions or outright opposition. The bill is tied to HB 6137, indicating companion or related legislation in the Michigan House. As of late June 2026, the bill was electronically reproduced, suggesting it remains in preliminary legislative stages.

The full text of this bill was not available for review, so this summary is based on the bill's title and legislative history. This Michigan legislation would amend the state's construction permit regulations to require an acoustic engineering report before a data center can receive a building permit. The bill appears designed to ensure that data center developers assess and document potential noise impacts from their facilities before construction begins. This requirement would likely affect data center companies planning projects in Michigan, adding both procedural steps and associated costs to the development timeline. For communities concerned about noise pollution from data center operations, the measure could provide technical documentation of expected acoustic impacts before projects are approved. The bill is currently in the early stages of the legislative process as of June 2026 and is tied to several related bills that may address complementary aspects of data center regulation.

The full text of this Michigan bill was not available at the time of this summary. Based on the bill title and legislative history, the measure would amend Michigan Public Act 3 of 1939 to establish reporting requirements for energy and water usage at data centers operating in the state. The bill likely would obligate data center operators to regularly disclose their consumption of these resources to state authorities, creating a standardized mechanism for tracking facility-level environmental impacts. This type of requirement affects data center developers and operators by imposing administrative and compliance obligations, while potentially providing state regulators and the public with better visibility into the resource demands of the growing data center industry. For Michigan's data center sector, such transparency measures are relevant as the state seeks to understand and plan for the infrastructure demands of new facilities. The bill is currently in the Michigan Senate with co-sponsor Sean McCann, indicating it has moved forward in the legislative process.

The full text of this Michigan bill was not available for review, so this summary is based on the bill title and legislative tracking information. The legislation would amend Michigan's public utilities law to require project labor agreements and prevailing wage and fringe benefit rates for certain data center contracts, a requirement that typically applies to major construction and infrastructure projects. The bill would likely affect data center developers and operators planning facilities in Michigan, as well as construction workers and labor organizations involved in data center projects. For the data center industry, this requirement could increase project costs and administrative complexity, potentially influencing investment decisions about where to locate new facilities. The measure appears to reflect policy concerns about ensuring worker protections and wage standards in the data center sector, which has experienced significant growth and development activity. As of the latest update, the bill has a named co-sponsor in the Michigan Senate, indicating active consideration in the legislative process.

The full text of this Michigan bill was not available for review, so this summary is based solely on its title and legislative history. The proposed legislation would create a new law requiring certain data centers in Michigan to enter into community benefit agreements as a condition of development or operation. Community benefit agreements are negotiated contracts between developers and local communities that typically outline commitments such as local hiring, infrastructure improvements, environmental protections, or financial contributions to offset project impacts. This requirement would represent a significant procedural change for data center projects in the state, potentially adding negotiation and compliance obligations to the development process. The bill is currently in the Michigan Senate with Jeremy Moss named as a co-sponsor, indicating it has support among lawmakers, though specific details about which data centers would be affected or what obligations these agreements might entail remain unclear without access to the full legislative text. For data center companies and communities in Michigan, this proposal signals an emerging effort to ensure that large technology infrastructure projects provide tangible local benefits beyond tax revenue and job creation.

The full text of this bill was not available for review, so this summary is based on its title and recent legislative action. The bill would amend Michigan's zoning enabling act to make it subject to a new "data center community benefit act," suggesting the state is creating a legal framework to streamline data center development while requiring developers to provide community benefits in exchange. This legislation would likely affect data center companies seeking to build in Michigan, local governments managing zoning regulations, and residents in communities where data centers are proposed. The change matters because it could remove zoning barriers to data center projects while establishing a formal process for negotiating benefits such as local investments, job creation, or infrastructure improvements to address community concerns about development. The bill is currently in the Michigan Senate with co-sponsorship from Senator Jeremy Moss, indicating active legislative support, and it is tied to SB 1050 for the 2026 legislative session, suggesting coordination with related data center legislation.

The full text of this Michigan bill was not available at the time this summary was prepared, so the following overview is based solely on the bill's title and legislative history. The legislation would amend Michigan's 1939 Public Utilities Act by adding a new section that creates a separate rate class specifically for large-load customers, a category that typically includes data centers and other energy-intensive industrial operations. By establishing a distinct rate classification, the bill could allow utilities to offer competitively priced electricity rates tailored to the consumption patterns and infrastructure needs of these major power users, potentially reducing operational costs that have historically made data center development less attractive in certain jurisdictions. For Michigan, which has been competing with other states to attract data center investments and the associated economic development benefits, such a rate structure could make the state more competitive by lowering the utility expenses that significantly impact data center profitability and site selection decisions. The bill currently has bipartisan support, as evidenced by Senator Jeremy Moss being named as a co-sponsor in the most recent legislative action, suggesting potential for advancement through the legislature. Additional details about specific rate structures, implementation timelines, or carve-outs will only become clear once the full bill text is made publicly available.

HF 2928 is a Minnesota bill that would establish new regulatory requirements and fees specifically targeting large data centers in the state. The legislation requires data centers using more than 100 million gallons of water annually to undergo preapplication review with the state Department of Natural Resources before submitting formal permit applications, and it specifies that data centers must undergo environmental review at a particular level. The bill also imposes a new fee on data centers, requires the Public Utilities Commission to establish a dedicated tariff rate for data center customers, and removes data center energy consumption from utility energy savings calculations while exempting data centers from contributing to energy conservation and optimization programs. These changes represent a significant shift in how Minnesota regulates data center development compared to other industries and other states, potentially affecting the economic competitiveness of locating new data center facilities in Minnesota. The bill was introduced on March 27, 2025, and most recently had an author added on April 9, 2026, indicating it remains in the legislative process. Industry analysts view the regulatory and financial requirements as substantial burdens on data center operators, though proponents may argue they ensure appropriate environmental and resource protections as the industry expands.

HF 4512 would require Minnesota municipalities to hold at least two public hearings before approving any rezoning petition or conditional use permit for data center construction, with at least one hearing dedicated solely to informing the public about the proposal. The bill mandates that municipalities disclose key information about proposed data centers at least 48 hours before public hearings, including the petitioner's name, the anticipated end user, the facility's location and size, details about security personnel and their armaments if the facility is near residential areas, and the estimated utility requirements for operation. The legislation also specifies that municipalities must make these disclosures regardless of any nondisclosure agreements or contracts they may have signed, potentially overriding confidentiality provisions that developers might seek. For the data center industry and municipalities, the bill represents a significant shift toward greater public transparency and community input in the approval process, which could extend development timelines and increase scrutiny of proposed projects. The bill was introduced in the 2025-2026 legislative session and recently had an author added, though its current prospects for passage remain unclear. The effective date is set for August 1, 2026, if the legislation is enacted.

SF 5100 modifies Minnesota's regulatory framework for data centers by streamlining environmental and financial requirements that currently apply to these facilities. The bill makes multiple substantive changes across water permitting, renewable energy standards, tax obligations, and utility fees, all designed to reduce barriers to data center development and operation in the state. Notably, the legislation creates a new streamlined preapplication water evaluation process for data centers that would consume more than 100 million gallons of water annually, requiring the state to assess water availability before formal permit applications are submitted. The bill also exempts certain data centers from having their electricity sales counted toward Minnesota's solar energy standards, removes specific fees that would otherwise apply to data centers, eliminates sales taxes on electricity purchases for qualifying facilities, and allows greater flexibility in energy generation redundancy arrangements. Currently referred to the Energy, Utilities, Environment, and Climate committee, the bill represents a significant policy shift toward industrial recruitment in the data center sector, though it may face scrutiny regarding its environmental implications, particularly regarding water consumption in a state with substantial freshwater resources. The scope and timing of these exemptions and streamlined processes will likely become central points of debate as the bill moves through the legislative process.

HF 4990 is a comprehensive bill that modifies Minnesota's regulatory framework for data centers across multiple areas, including water appropriations, utility solar energy standards, fee structures, and electricity tax treatment. The bill makes its first substantive change by amending water appropriation evaluation procedures for large data centers, specifically modifying how the state's Department of Natural Resources assesses projects with consumptive water use exceeding 100 million gallons annually, though the excerpt provided focuses primarily on streamlining the preapplication evaluation process rather than detailing the substantive modifications themselves. Beyond water policy, the bill addresses electricity-related regulations by exempting data center electricity sales from calculations of utilities' solar energy standards, exempts certain data centers from specified fees, removes sales tax on electricity purchases for qualifying data centers, and establishes provisions for data center energy generation redundancy. The legislation currently sits in the Environment and Natural Resources Finance and Policy Committee following its introduction on April 16, 2026, positioning it for committee review before potential advancement. For data center development in Minnesota, this bill would reduce operational costs and regulatory complexity, potentially making the state more competitive for attracting large-scale data center projects by lowering barriers to water permits, utility compliance costs, and energy expenses. The pro-industry orientation of these provisions suggests the bill is intended to facilitate data center expansion in the state, though its passage will likely depend on committee deliberations regarding environmental and utility cost concerns.

SF 5231 would repeal Minnesota's tax exemptions for data centers, eliminating a significant financial incentive that has encouraged major investment in the state's data center industry. The bill specifically removes the sales tax exemption on enterprise information technology equipment and computer software used in qualified data centers, which currently allows these facilities to avoid state sales taxes on billions of dollars in infrastructure investments. This change would affect both new data center construction projects and existing facilities, as companies would now pay Minnesota's standard sales tax rate on servers, routers, networking equipment, and related technology purchases. The bill also repeals a contingent reduction in special education aid appropriations that was previously tied to data center tax revenue, though the precise fiscal impact of these changes is not detailed in the excerpt provided. Data center operators and industry advocates argue the exemptions are essential for competing with other states for major projects, while bill supporters contend that repealing these exemptions would increase state tax revenue and reduce preferential treatment for a single industry. With the latest legislative action showing an author addition on April 29, 2026, the bill remains active in the 94th Legislature, though its prospects for passage are unclear without additional context on legislative priorities and committee assignments.

HF 4888 would establish a temporary moratorium on new data center permits in Minnesota, halting development until the Public Utility Commission completes a comprehensive report on data center impacts and submits it to legislative committees by July 1, 2027, or potentially by January 1, 2028 if an extension is needed. Once the report is submitted, the state and local governments would still be prohibited from issuing permits, including conditional use permits, for one additional calendar year, effectively creating at least a 1.5 to 2.5 year pause on new data center projects. The required report would assess multiple development scenarios and examine critical factors including energy and water consumption, impacts on federally and state-listed species and tribal treaty rights, local economic effects on employment and property taxes, and identification of suitable locations that minimize residential disruption. The bill mandates consultation with Minnesota Tribal governments during the report development and requires that any third-party contractor creating the report undergo a conflict-of-interest evaluation to prevent bias from data center developers. This legislation reflects significant concern about the rapid expansion of data center development in Minnesota and its potential environmental, economic, and cultural consequences. The bill's status as recently authored suggests it is in the early stages of the legislative process, and its anti-development posture indicates it may face opposition from the data center industry while potentially gaining support from environmental and tribal advocacy groups.

HF 4173 modifies Minnesota's tax exemption framework for data centers by creating a new category called "qualified large-scale data center" while redefining existing data center exemptions. Under the bill, qualified large-scale data centers would require a $250 million investment threshold over 60 months and could operate across multiple non-contiguous locations, whereas traditional qualified data centers would require a $30 million investment over 48 months on contiguous parcels. The bill redefines existing qualified data center requirements by changing language from "at least" to "fewer than" 25,000 square feet, effectively narrowing the scope of the traditional exemption while expanding opportunities for larger facilities through the new category. The exemptions apply to sales and use taxes on enterprise information technology equipment, computers, servers, networking equipment, and related computer software used in these facilities, making the tax treatment more favorable for large-scale operations. The changes take effect July 1, 2026, and appear designed to attract major data center investment to Minnesota by offering more flexible location requirements and higher investment thresholds for large operations. Author Kozlowski was recently added to the bill, indicating ongoing legislative work on this measure in the 94th Legislature session.

HF 5125 would repeal Minnesota's sales and use tax exemption for data centers, a significant change to the state's tax treatment of the technology sector. The bill eliminates a previous exemption that allowed data centers to avoid paying sales tax on enterprise information technology equipment and computer software, effectively increasing the cost of establishing and operating large data center facilities in the state. The legislation also repeals a contingent reduction in special education aid appropriations that was previously tied to the data center tax exemption. The bill redefines what constitutes a "qualified large-scale data center" in state statute to require at least 25,000 square feet of connected facilities and a minimum investment of $250 million over five years, and these changes take effect July 1, 2026. For the data center industry, this represents a removal of a pro-development incentive that had made Minnesota more competitive for attracting major technology infrastructure projects. As of the most recent legislative action, Representative Pursell was added as an author to the bill, indicating ongoing engagement with the legislation during the 2025-2026 legislative session.

House Bill 3369 would impose a temporary moratorium on data center construction permits in St. Louis by pausing the acceptance, processing, and approval of all applications for data center acquisition, construction, reconstruction, or alteration until August 28, 2027. The bill defines data centers broadly to include facilities used for data processing, storage, and distribution, encompassing everything from traditional server farms and cloud computing operations to cryptocurrency mining and artificial intelligence processing infrastructure. The moratorium would apply only to departments, divisions, boards, commissions, councils, and agencies in St. Louis as a city not within a county, though applications submitted before August 28, 2026, would be exempted and processed under current procedures. Currently referred to the House Emerging Issues Committee, the bill reflects growing concerns about data center development, which typically raise questions about energy consumption, water usage, economic benefits, and infrastructure impacts in affected municipalities. If enacted, the measure would effectively freeze new data center projects in the city for approximately one year, giving policymakers time to study or develop regulations around such facilities before permitting resumes.

Missouri House Bill 2239 would establish the Artificial Intelligence Data Center Environmental Accountability Act, creating comprehensive environmental reporting and operational requirements for large AI data centers with 100 megawatts or greater capacity built, expanded, or permitted after August 28, 2027. The legislation mandates that affected facilities install closed-loop water cooling systems or equivalent alternatives, implement continuous monitoring of water usage and discharge, and submit detailed annual environmental and health reports to the Missouri Department of Natural Resources covering water consumption, energy sourcing, greenhouse gas emissions, waste management, and community health impacts. These reports would be made publicly available within 60 days of submission, and the department would issue annual summaries identifying cumulative environmental and health risks from AI data centers statewide. Operators failing to comply with the installation requirements or reporting obligations would face civil penalties of up to $50,000 per day, creating significant financial exposure for non-compliance. The bill is currently referred to the House Emerging Issues Committee, where its future progress remains uncertain. The legislation represents a notable regulatory approach to AI data center development in Missouri, imposing both operational and transparency burdens that industry observers view as potentially restrictive to facility expansion and attracting investment in the state's technology sector.

House Bill 3390, introduced by Representative Cupps in Missouri's 103rd General Assembly, would establish significant new restrictions on hyperscale data center development across the state beginning August 28, 2026. The bill defines hyperscale data centers as facilities requiring at least 25 megawatts of energy and would prohibit them entirely in agricultural, conservation, environmental stewardship, mixed-use, and residential zoning categories, while also requiring a 500-foot setback with native vegetation barriers around permitted facilities. Additional provisions would mandate compliance with federal noise abatement standards and restrict construction within ten miles of agricultural, recreational, or conservation lands and on state waters. The legislation affects current and prospective data center developers by substantially limiting available locations for new facilities and imposing operational and environmental requirements on approved projects. The bill is currently in the House Emerging Issues Committee following its initial referral, indicating it is in early stages of consideration. Given the bill's substantial restrictions on data center development, it faces potential opposition from industry stakeholders while potentially gaining support from agricultural, conservation, and residential groups concerned about land use impacts.

LB468 is a comprehensive revenue and taxation bill introduced in the Nebraska Legislature that would eliminate the existing sales tax exemption for data centers, effectively removing a key tax incentive that has been used to encourage data center investment and development in the state. The bill, which was assigned to the Revenue Committee, proposes to repeal sections 77-2701.54 and 77-2704.62 of Nebraska law, which contain the data center sales tax exemption and related definitions. By eliminating this exemption, the legislation would increase the operating and development costs for data center companies operating or considering operations in Nebraska, as they would no longer be able to avoid sales tax on equipment and materials used in data center construction and operation. The bill also addresses multiple other tax and fee provisions including changes to inheritance taxes, motor vehicle taxes, documentary stamp taxes, and various other revenue mechanisms across state government. As of its latest legislative action, LB468 has been indefinitely postponed, effectively ending its consideration in the current legislative session and suggesting that the proposal did not advance through the committee process or gain sufficient legislative support. This outcome indicates that the effort to eliminate data center tax incentives did not succeed, at least for the current legislative term.

LB1111 would establish new oversight mechanisms for data centers in Nebraska by requiring utility companies to file annual detailed reports about data center electricity consumption, forecasts, and infrastructure needs with the Nebraska Power Review Board. The bill creates a specific definition of large data centers (those using 20 megawatts or more of peak electricity demand) and requires public power suppliers to ensure that large data centers pay the full cost of service upgrades and infrastructure needed to support their operations, preventing those costs from being passed to other ratepayers. The legislation also modifies regulations for cryptocurrency mining operations, defining them as facilities between one and twenty megawatts that validate blockchain transactions. The bill matters for Nebraska's data center development because it would give the state regulatory authority to track and manage the rapid growth of these electricity-intensive facilities and would require large operators to internalize their infrastructure costs rather than spreading them across residential and business consumers. As of its latest action in the 2026 legislative session, the bill was indefinitely postponed, meaning it did not advance and is unlikely to proceed further in its current form without legislative action to reconsider it.

Nebraska's Legislative Bill 1131 would eliminate existing tax exemptions for data centers while simultaneously establishing a new tax credit program for domestic violence and human trafficking service providers. Specifically, the bill would repeal sections 77-2701.54 and 77-2704.62, which currently provide personal property tax exemptions and sales and use tax exemptions for data center operations in the state. The legislation would redirect tax revenue generated from these data center operations toward funding approximately 6 million dollars in annual tax credits distributed to tribal governments, nonprofit organizations, and coalitions that provide services to victims of domestic abuse and human trafficking. For the data center industry, this represents a significant shift in Nebraska's economic development approach, converting what had been a tax-incentive-based competitive advantage into additional operating costs. The bill was indefinitely postponed in committee as of its latest action, meaning it did not advance during the legislative session and effectively stalled its progress, though it could potentially be revived in future sessions. This legislative outcome reflects competing priorities within the state between attracting data center investment through tax incentives and funding critical social services through revenue generation.

SB439 would authorize New Hampshire municipalities to regulate data centers in commercial and industrial zoning districts while establishing a comprehensive framework of siting, design, and operational requirements that applicants must satisfy before approval. The bill defines data centers as facilities primarily used for storing, processing, managing, and transmitting digital data, and it excludes smaller on-site facilities that serve only a property owner's enterprise needs and do not lease services to third parties. Key requirements include a 150-foot setback for all mechanical and electrical equipment from public roads and residential properties, noise levels that cannot exceed ambient levels by more than 5 percent within 300 feet of residential areas, a 30-foot landscaped perimeter buffer with specific tree spacing and vegetation coverage requirements, and prohibition of data centers within 2,640 feet of passenger rail stations or high-capacity transit facilities, along with mandatory utility capacity verification from electric providers. The bill also imposes architectural design standards such as facade variations on buildings exceeding 100 feet in length and requires sidewalks with landscaped strips and shaded pedestrian pathways on development sites. The bill was laid on the table by the Massachusetts House on May 14, 2026, effectively ending its consideration in the current legislative session and preventing it from advancing further without subsequent legislative action to revive it. These requirements represent significant regulatory constraints that could substantially increase development costs and complexity for data center projects seeking approval in New Hampshire municipalities.

Assembly Bill 4945 would mandate the New Jersey Board of Public Utilities to conduct a comprehensive study on how data center development affects the state's environment, infrastructure, and finances, with findings due within twelve months of the bill's enactment. The study would examine multiple impacts including energy consumption, water usage, effects on the electrical grid, air quality and noise pollution, land use patterns including forest clearing, electronic waste generation, local infrastructure strain, potential public health effects, fiscal impacts such as utility rate increases, and energy efficiency practices across existing and proposed data centers. The bill defines data centers narrowly as facilities with at least one megawatt of computing power that house servers, networking equipment, and related infrastructure systems. As part of the research process, the Board of Public Utilities would be required to seek input from stakeholders and hold at least one public hearing before submitting its report to the Governor and state Legislature. The study would conclude with recommendations for new legislation or regulations to address the identified adverse impacts on the environment, infrastructure, and utility rates. Currently in the early stages of the legislative process, the bill has been referred to the Assembly Telecommunications and Utilities Committee following its introduction in May 2026 and has attracted bipartisan sponsorship from representatives representing Atlantic, Camden, Cumberland, Gloucester, and Salem counties.

Senate Bill 4304 would prohibit data center developers and their agents from entering into non-disclosure agreements with municipal agencies, approving authorities, or property sellers that conceal details about development plans or prevent public review of those plans. The bill defines data centers as facilities whose primary function is storing, managing, and processing digital data, including associated infrastructure like servers, network equipment, and environmental control systems. Under the proposed legislation, developers would be required to attest in their applications that no party involved in the real estate transaction has entered into agreements designed to hide development details, and municipalities would be prohibited from approving any site plan, subdivision, or other required permit if an applicant violates these restrictions. The bill declares such concealment agreements against public policy and unenforceable, though it explicitly preserves existing transparency requirements that may apply to other types of development projects. Introduced in May 2026 by Senators Linda Greenstein and Brian Stack, the bill is currently referred to the Senate Community and Urban Affairs Committee and has not yet advanced further in the legislative process. The measure would take effect immediately upon enactment if passed.

Senate Bill 4400 would require New Jersey's Department of Environmental Protection to conduct a comprehensive evaluation of how large-scale data centers impact the state's water resources, with findings due within 15 months of the bill's enactment. The study would examine both historical effects over three to seven years and projected future impacts, analyzing water consumption patterns, costs to public water systems and ratepayers, infrastructure demands, and potential reduction strategies that data center operators could implement. The legislation defines "large-scale data centers" broadly to include not only traditional server facilities but also artificial intelligence infrastructure, with specific thresholds to be established by the DEP in consultation with the Board of Public Utilities based on water use, energy demand, cooling capacity, and other resource consumption factors. The bill gives the DEP authority to require data center operators and water utilities to submit detailed information about water sourcing, usage volumes, cooling technologies, and conservation practices to support the evaluation. As introduced in the Senate and referred to the Environment and Energy Committee in June 2026, the bill takes a procedural and information-gathering approach rather than imposing immediate restrictions or incentives on data center development, making it a neutral policy measure focused on establishing a factual baseline for future regulatory decisions. The study's findings and any recommended legislation from the DEP could influence how New Jersey shapes its approach to data center expansion in a state facing increasing pressure from the artificial intelligence industry.

The "Responsible Data Center Development and Resource Protection Act" would establish a comprehensive statewide framework governing the siting and operation of large data centers (facilities with at least 25 megawatts of electrical load) in New Jersey. Before any developer can submit a municipal application for a data center project, they would be required to file a detailed resource impact statement with the State Planning Commission addressing electricity demand, water usage, environmental impacts, infrastructure upgrades, alternative energy sourcing, and cumulative environmental effects across municipal, county, and state levels. The bill would restrict data center development to brownfield sites and industrial corridors already serviced by appropriate infrastructure, and would require developers to demonstrate plans for alternative electricity generation and other sustainability measures. The legislation affects data center developers, municipalities with proposed projects, utility companies managing grid capacity, and state environmental and economic development agencies. For New Jersey's data center industry, the bill represents a significant regulatory expansion that could substantially slow development timelines and increase project costs through mandatory infrastructure upgrades and alternative energy requirements. Currently introduced in the Senate and referred to the Community and Urban Affairs Committee as of June 2026, the bill faces an uncertain path given the substantial regulatory burden it would impose on the industry.

Senate Bill 4401 would require New Jersey's Board of Public Utilities to conduct a comprehensive study examining the environmental, infrastructural, and financial impacts of data center development within the state, with a final report due within 12 months of the bill's enactment. The study would analyze critical metrics including data center energy consumption and water usage, effects on the electric grid and local power infrastructure, impacts on air quality and noise pollution, land use patterns including forest clearing, potential environmental degradation and electronic waste generation, and any associated public health effects. The bill also directs the BPU to evaluate energy efficiency practices at data centers, fossil fuel dependency, renewable energy adoption, and fiscal impacts such as increased utility rates for residents and businesses. As part of the study process, the BPU must solicit input from interested stakeholders and hold at least one public hearing to gather community perspective. The legislation matters for New Jersey's data center sector because it would establish a factual baseline on an industry with significant resource demands, potentially informing future regulatory decisions, and the study explicitly requests recommendations for legislative action or new regulations to address identified problems. Currently in early legislative stages, the bill was introduced in June 2026 and referred to the Senate Environment and Energy Committee, where it awaits further consideration.

Assembly Bill 5224, sponsored by Assemblyman Chris Tully of Bergen County, would require data center developers to provide advance public disclosure of project details at least 180 days before submitting preliminary site plans for municipal approval. Developers would be required to notify local elected officials and the public via press release about the proposed data center's location, estimated costs and tax incentives, and environmental impacts, while also establishing ongoing community engagement through media outreach, physical site signage, and multilingual informational materials. The bill defines "data centers" broadly to include facilities designed for artificial intelligence operations, covering everything from newly constructed buildings to retrofitted structures that require significant electrical loads, cooling capacity, or water use for AI computational workloads. The legislation reflects legislative concern that rapid data center expansion has created substantial impacts on local communities including increased electricity demand, water consumption, greenhouse gas emissions, and other environmental and public health effects, yet affected residents and local governments have often lacked timely or complete information about these projects. The bill was introduced on June 8, 2026, and has been referred to the Assembly Science, Innovation and Technology Committee, where it currently awaits further consideration. The measure represents a significant procedural requirement that would extend data center development timelines and provide communities with advance opportunity to evaluate and respond to large-scale facility proposals before the formal planning and zoning approval process begins.

The "Responsible Data Center Development and Resource Protection Act" would create a comprehensive state-level regulatory framework for large data centers in New Jersey, defined as facilities with at least 25 megawatts of peak electrical load. Before any developer can submit applications to a municipality for site plan approval, they would be required to prepare and submit a detailed resource impact statement to the State Planning Commission covering electricity demand, water usage, environmental impacts, infrastructure needs, greenhouse gas emissions, and workforce effects, with the statement then distributed to the Board of Public Utilities, Department of Environmental Protection, Economic Development Authority, and the host municipality for review. The bill reflects legislative concerns about rapid increases in data center electricity and water consumption, potential strain on utility infrastructure and ratepayer costs, and risks to drinking water supplies and overburdened communities, while acknowledging that data centers can provide economic benefits when properly sited. The legislation would apply to all large load data center developers seeking to build in New Jersey, effectively requiring them to clear a state approval process before engaging with local land-use procedures. The bill was introduced in June 2026 and referred to the Assembly Science, Innovation and Technology Committee, where its current status remains pending. From an industry perspective, the bill represents a significant regulatory hurdle that would delay projects and increase development costs, while from a policy perspective it aims to concentrate data center growth in already-developed areas with existing infrastructure rather than allowing dispersed development across the state.

The "End Data Center Tax Credits Act," sponsored by three New Jersey senators and passed by the Assembly with overwhelming support (74-4), restructures the state's tax incentive framework by reducing the amount of tax credits available to the Next New Jersey Program, which has supported data center development. The bill simultaneously redirects resources toward new priorities, including authorizing the Board of Public Utilities to issue tax credits for energy storage projects and establishing temporary gross income tax credits for residential ratepayers, suggesting a policy shift away from data center incentives toward renewable energy infrastructure and residential cost relief. Under the legislation, the Next New Jersey Program would operate within the same $11.5 billion overall cap that covers multiple economic development initiatives across the state over a nine-year period, effectively squeezing the available funding for data center projects compared to previous arrangements. This reduction matters significantly for New Jersey's data center industry, as the Next New Jersey Program has been a key financial incentive mechanism to attract and retain large computing facilities that require substantial tax support to justify location decisions. The bill's passage through both houses by a large margin (74-4 vote) and its framing as redirecting incentives toward energy storage and ratepayer relief indicate this represents a deliberate policy realignment rather than a technical adjustment. Data center developers and industry representatives will likely face more limited tax credit availability going forward, potentially affecting the competitiveness of New Jersey as a location for future data center investments compared to other states with more generous incentive structures.

The "End Data Center Tax Credits Act" seeks to redirect New Jersey's tax incentive resources away from data center development and toward energy storage projects and residential ratepayer relief. The bill amends the state's overall tax credit cap structure to include a new "End Data Center Tax Credits Act" program within the existing 11.5 billion dollar, nine-year cap that currently covers multiple economic development initiatives including the Next New Jersey Program, which provides incentives for data center projects. While the provided excerpt does not contain the specific mechanisms by which data center credits would be reduced, the bill's title and stated purpose indicate that it would shrink or eliminate tax credits previously available under the Next New Jersey Program to data center developers seeking to establish or expand operations in the state. The bill was introduced in June 2026 by a bipartisan group of Assembly sponsors and reflects apparent legislative concern that data center incentives consume resources that could better serve other state priorities such as energy infrastructure and utility rate relief. As of the latest legislative action noted, the bill was substituted by S4390, suggesting the proposal has advanced to the Senate and may have been substantially revised during the legislative process. For the data center industry in New Jersey, this represents a potential significant reduction in financial incentives that have previously made the state competitive for attracting such facilities, though the actual impact will depend on the final form of any enacted legislation and the specific credit reductions ultimately implemented.

Assembly Bill 4096 would require data center owners and operators in New Jersey to submit detailed water and energy usage reports to the Board of Public Utilities on a semi-annual basis, with the first reports due within three to six months of the law's effective date depending on when the facility began operating. The reporting requirements include basic facility information, comprehensive energy and water consumption data, utility service agreements, on-site power supply details, and the sources of water used by the data centers. For data centers that receive financial incentives from state agencies, the bill imposes additional reporting obligations including performance metrics such as power usage effectiveness, renewable energy factor, and water usage effectiveness, as well as sustainability indicators like average equipment intake air temperature and waste heat temperature. The measure establishes standardized definitions for key efficiency metrics and creates a framework for the state to track and potentially monitor the resource consumption patterns of data centers operating within New Jersey. The bill currently exists in a revised form, having been substituted by S3379, indicating that the legislation has been modified during the legislative process and is proceeding through the state Senate. This reporting requirement represents a data collection and transparency measure that does not impose operational restrictions or penalties on data centers but creates a standardized baseline for understanding the industry's water and energy footprint in the state.

New Jersey Senate Bill 3379 would require all data center owners and operators in the state to submit detailed water and energy usage reports to the Board of Public Utilities twice per year for an initial three-year period. The mandatory reports would include basic facility information, energy and water consumption data, and performance metrics such as power usage effectiveness and water usage effectiveness, with additional sustainability indicators required for facilities that have received state financial incentives. The BPU would be required to publish anonymized and aggregated information from at least five facilities on its website within 30 days of receiving each report, while keeping individual facility submissions confidential under state law. Data center operators would also need to notify the BPU at least 60 days in advance of any substantial changes to their operations or technologies that would affect the reported information. The bill passed the New Jersey Senate unanimously 39-0, indicating broad legislative support for increased transparency and monitoring of the data center industry's resource consumption. After the initial three-year reporting period concludes, the BPU would have authority to make these reporting requirements permanent through regulatory adoption, potentially establishing an ongoing compliance obligation for the data center sector in New Jersey.

New Jersey's Assembly Bill 796, signed into law as P.L.2026, C.32, requires all electric public utilities in the state to establish special electricity tariffs for large data centers consuming at least 100 megawatts monthly. The law mandates that these tariffs protect non-data center customers from bearing increased electricity costs caused by data center expansion while also incentivizing data centers to improve energy efficiency and capture waste heat. To achieve this protection, utilities must require new data center customers to commit to using at least 85 percent of requested service for a minimum of 10 years, post financial deposits to guard against early closure or reduced usage, and demonstrate that their projects are not duplicative of existing facilities. The Board of Public Utilities will review and approve utility tariff filings within 180 days of the law's effective date, with implementation beginning one year later. This legislation reflects a policy choice to ensure that data center growth does not shift infrastructure and operational costs to residential and non-data center business ratepayers, potentially affecting the economic competitiveness of New Jersey for data center development compared to other states with more favorable utility terms.

This New York bill would impose a moratorium on new data center permits while requiring the Public Service Commission to issue orders minimizing the impact of data centers on electricity and gas rates for all customer categories. The legislation, sponsored by Assembly Member Kelles and supported by 51 cosponsors, addresses concerns that rapid data center growth threatens the state's climate goals and increases utility costs for residents and businesses. According to the bill's findings, data center electricity consumption in New York is projected to more than double household electricity use, with 56 percent of that power currently coming from fossil fuels that carry carbon intensity 48 percent above the national average. The bill also cites analyses showing that 70 percent of locations with rising wholesale electricity prices are within 50 miles of significant data center activity, and notes additional concerns about water usage for cooling systems and conversion of agricultural land to industrial use. As of the latest action, the bill has been amended, reprinted, and recommitted to the Environmental Conservation Committee after being discharged from that committee, indicating it remains under legislative consideration. If enacted, this legislation would effectively halt new data center development in New York pending regulatory review of rate impacts, representing a significant constraint on an industry that has been expanding rapidly across the state.

Senate Bill 9144A, introduced in February 2026, would impose a comprehensive moratorium on new data center permits in New York State while requiring the Public Service Commission to issue orders minimizing the impact of data centers on electricity and gas rates for all user categories. The bill's legislative findings cite significant environmental and economic concerns, including projections that data center electricity consumption in New York could double the current usage of all households combined, with 56 percent of data center power currently sourced from fossil fuels that carry a carbon intensity 48 percent higher than the national average. The legislation also addresses secondary impacts such as water consumption for cooling systems, conversion of agricultural land to industrial use, and increased household electricity rates, which the bill attributes partly to data center development. The measure has substantial legislative support, backed by 21 co-sponsors across both chambers, with a companion Assembly bill (A10141-A) also in circulation. As of the latest action noted, the bill has been amended and recommitted to the Environmental Conservation Committee after being discharged from that committee, indicating ongoing legislative consideration. For the data center industry, this bill represents a significant regulatory obstacle that would halt new facility development in the state pending resolution of the identified environmental and rate impact concerns.

The "Data Center Water Stewardship and Reuse Act" would require large data-center facilities in New York to reduce their consumption of potable public water by implementing advanced water recycling, reuse systems, and closed-loop cooling technologies. The bill applies to facilities meeting a 10-megawatt electrical threshold or consuming over 5 million gallons of potable water annually, establishing permitting requirements, reporting standards, and enforcement mechanisms administered by the Department of Environmental Conservation. The legislation aims to address the growing environmental concern that large data centers consume substantial amounts of freshwater for cooling purposes, which can strain local water supplies and conflict with watershed protection goals. Beyond regulatory requirements, the bill includes provisions for incentives and technical assistance to help facilities comply, as well as variances and hardship exemptions, and establishes a dedicated data center water stewardship fund. The bill is currently referred to the Environmental Conservation Committee, where it will undergo review and debate before potential advancement to floor consideration. For the data center industry in New York, this legislation represents a significant regulatory development that could affect site selection, operational costs, and facility design, particularly as the state positions itself as a major hub for computing and artificial intelligence operations.

This New York bill would require hyperscale data centers (facilities with peak demand of 20 megawatts or more) that are newly constructed or substantially expanded to provide financial benefits to residential customers in their host communities. Data center operators would be required to either fund utility bill discounts or credits for local residential customers or pay to install eligible residential technologies such as heat pumps, solar panels, and battery storage systems in homes within the host community. The Public Service Commission would have ninety days to establish the specific program requirements, including determining the funding amount based on factors like the facility's expected electrical demand and the host community's total energy consumption, with priority given to low- and moderate-income households and disadvantaged communities. The bill also requires the Long Island Power Authority to establish an equivalent program for data centers in its service territory. As of the most recent action listed, the bill has been delivered to the New York State Senate, indicating it has passed the Assembly and is advancing in the legislative process. This legislation represents a significant policy shift in New York's approach to data center development by attaching mandatory community benefits requirements that place direct financial obligations on data center operators rather than treating such projects as revenue-neutral or benefits-neutral developments.

The "Stop Subsidizing Data Centers Act" (A10852B) would prohibit data centers from receiving economic development power allocations and "Recharge New York" power allocations, two major incentive programs that have historically subsidized large industrial projects in New York State. The bill defines data centers broadly to include facilities capable of consuming 20 megawatts or more of electricity and engaged in data processing, storage, hosting, or similar services. Beyond removing subsidies, the legislation establishes stricter environmental review requirements by designating the Department of Environmental Conservation as the mandatory lead agency for reviewing any project consuming over 20 megawatts and requires environmental review for projects within 10 miles of federally recognized tribal territories. The bill also creates job maintenance conditions for Industrial Development Agency financial assistance, requiring projects to return awarded assistance if they fail to maintain specified job levels within five years of completion. As of the latest action on April 8, 2026, the bill was reprinted as amended and recommitted to the Committee on Environmental Conservation, indicating it remains under active consideration in the assembly committee process. This legislation would significantly restrict data center development incentives in New York and represents a policy shift away from actively courting the data center industry through state subsidies.

The "Stop Subsidizing Data Centers Act" is New York legislation that would prohibit state economic development subsidies and power allocations from supporting data center projects. Specifically, the bill would prevent data centers from receiving allocations of economic development power under state law and would block them from accessing power from the Recharge New York program, which currently allocates up to 910 megawatts of hydroelectric power to eligible businesses. The bill defines data centers as facilities capable of using 20 megawatts or more of electricity and primarily engaged in data processing, storage, hosting, or related services. Beyond prohibiting subsidies, the legislation also strengthens environmental oversight by designating the Department of Environmental Conservation as the lead agency for reviewing any projects consuming over 20 megawatts and requiring environmental review for any data center projects located within 10 miles of federally recognized Native American territories. The bill has progressed through the Senate committee process and exists in a companion Assembly version, though its ultimate passage would require approval from both chambers. For New York's data center industry, this legislation represents a significant shift in state policy away from economic incentives that have historically supported facility development and expansion in the state.

New York's proposed "Accountability of Costs for Data Centers Act" (also known as the AC/DC Act) would require electric corporations, gas corporations, and municipalities to create separate utility rate classifications specifically for large energy use facilities, which would include data centers. Under this bill, data centers would be required to bear all costs associated with serving their operations, including infrastructure upgrades, improvements, and operational expenses, as well as all costs related to rate of return on investments made to serve these facilities. The legislation also mandates that data centers absorb all increases in commodity prices and transmission service fees that occur after the bill's effective date, and authorizes the Department of Public Service to establish financial surety requirements between utilities and large energy users. The bill seeks to prevent data centers from benefiting from cost-sharing arrangements with other utility customers and to protect residential and small business ratepayers from subsidizing data center operations. As of its latest action in October 2025, the bill (Senate Print Number 8540A) has been committed to the Committee on Energy and Telecommunications, indicating it remains in the early stages of the legislative process. The medium-confidence anti-sentiment classification reflects that the bill imposes significant financial accountability and cost burdens on data center operators rather than providing the tax incentives or regulatory streamlining that the industry typically seeks.

The New York State Sustainable Data Centers Act would establish comprehensive energy and environmental regulations for large data centers operating in the state, defined as facilities capable of using 20 megawatts of electricity or more. The bill would require annual disclosure reporting on data center energy consumption, water use, and emissions, while prohibiting utilities from offering fossil fuel incentives through power purchase agreements with these facilities. The legislation reflects concerns that data centers consume significant amounts of energy and water while contributing substantially to greenhouse gas emissions, creating obstacles to New York's climate goals under the Climate Leadership and Community Protection Act. The bill directly affects data center operators and developers by imposing compliance and reporting burdens, making fossil fuel-powered expansion less economically attractive and generally increasing the regulatory costs of data center projects in New York. As of its latest action in March 2025, the bill (S06394B) has been reported favorably from both the Committee on Energy and Telecommunications and the Committee on Environmental Conservation, suggesting it has committee support and could advance toward floor consideration. The legislation represents a shift toward stricter environmental oversight of data center development, potentially reshaping the industry's expansion strategy in the state by prioritizing renewable energy adoption and operational efficiency.

The "Accountability of Costs for Data Centers Act" (AC/DC Act) would require electric corporations, gas corporations, and municipalities in New York to create separate rate classifications specifically for large energy use facilities, such as data centers, rather than grouping them with other commercial customers. Under the bill, all costs associated with serving these facilities, including infrastructure upgrades, improvements, operational expenses, and rate of return recovery, would be assigned entirely to the large energy user classification rather than spread across other customer classes. This means data center operators would bear the full financial burden of grid upgrades and service costs needed to accommodate their operations, preventing those expenses from being subsidized by residential or small business ratepayers. The bill has advanced through committee and was amended on third reading as of September 2025, indicating it has substantial legislative support, with over 40 cosponsors across the Assembly. For data center development in New York, this legislation represents a significant policy shift toward making the industry directly accountable for infrastructure costs rather than allowing those expenses to be shared with the general utility customer base. The bill's trajectory suggests it is moving toward potential passage, which would fundamentally change the economics of data center expansion in the state by increasing the upfront and ongoing costs borne by operators.

The New York State Sustainable Data Centers Act (A09086B) would establish comprehensive regulations on energy consumption by data centers meeting or exceeding 20 megawatts of electricity capacity. The bill requires regulated data centers to submit annual disclosure reports detailing their energy use, water consumption, and greenhouse gas emissions, while also mandating public engagement processes around data center operations. A key provision prohibits utilities from offering financial incentives tied to fossil fuel power purchase agreements with data centers, effectively pushing the sector toward renewable energy sources. The legislation reflects legislative concern that data center expansion in New York State threatens the state's ability to meet renewable energy and emissions reduction goals established under the Climate Leadership and Community Protection Act, as well as concerns about water depletion and pollution from data center operations. Currently in the Committee on Energy after being amended and recommitted multiple times, the bill has substantial bipartisan sponsorship with 10 cosponsors and carries significant implications for future data center development permitting and operations within the state. If enacted, the bill would effectively constrain data center growth unless operators can demonstrate compliance with strict environmental and energy efficiency standards, making it one of the most restrictive data center regulations in the country.

Assembly Bill 11560, known as the "Responsible Data Center Development Act," would impose a one-year moratorium on permit issuance for large data centers in New York, defined as facilities with a peak power demand of 20 megawatts or greater. The moratorium applies to new permits, certificates, registrations, licenses, and other forms of approval issued by the state Department of Environmental Conservation, though it excludes modifications, renewals, and recertifications of existing facilities. Beyond the moratorium, the bill would require utilities to establish independent service classifications for large data centers, set energy efficiency standards for these facilities, mandate community benefits agreements for host communities, and establish labor standards for data center construction work. The legislation affects companies planning to develop or expand large data center operations in New York and impacts utility providers, construction workers, and communities potentially hosting these facilities. The bill's significance lies in its attempt to slow rapid data center expansion while establishing frameworks for environmental and labor protections, representing a cautious approach to an industry seeking substantial growth in the state. As of the latest action noted, the bill has been returned to the Assembly after consideration, indicating it remains in the legislative process without clear indication of passage or final defeat.

The Responsible Data Center Development Act would impose a one-year moratorium on state permits for large data centers, defined as facilities with peak electricity demand of 20 megawatts or more, though the moratorium would not apply to facilities already under construction or to renewals of existing permits. The legislation would also require utility companies to establish independent service classifications for large data centers, mandate environmental impact reports before permit approval, set energy efficiency standards for data center operations, establish labor standards for data center construction projects, and require developers to provide community benefits to host municipalities and disadvantaged communities. The bill affects data center developers, utility companies, and communities where data centers might be located, making New York's regulatory environment for data center development substantially more restrictive and requiring greater community consideration and environmental review. The bill's current status indicates it has been substituted by Assembly Bill A11560, meaning the Assembly has proposed its own version that will need to be reconciled with this Senate version before passage. For the data center industry, this legislation represents significant new barriers to expansion in New York, while environmental advocates and community groups view it as necessary protection against the rapid proliferation of power-intensive facilities.

H.B. 1180 would impose substantial new regulatory requirements on large data centers in North Carolina, defined as facilities with projected electrical demand exceeding 20 megawatts. The bill requires electric utilities to file tariffs with the North Carolina Utilities Commission that mandate data center customers enter into 10-year minimum service contracts, maintain a minimum billing demand of 85 percent of their requested capacity, and provide financial assurance or surety to protect other ratepayers from cost increases if the data center reduces operations or ceases service. These provisions are designed to ensure that data centers bear the full cost of infrastructure investments needed to serve them and shield residential and business customers from rate increases related to data center operations. The bill also repeals several existing tax provisions, becoming effective January 1, 2027, while utilities must file compliant tariffs within 180 days and cannot serve new large data centers under different terms after January 1, 2028. Currently at first reading in the North Carolina House, the bill faces significant industry opposition due to its substantial compliance costs and operational constraints, though it has advanced through initial legislative stages.

Senate Bill 1026 would establish new regulatory requirements for large electricity customers in North Carolina, defined as nonresidential customers with peak demand of 50 megawatts or higher, including data centers. The bill creates a framework requiring electric utilities to file specialized tariffs for these customers that would include mandatory conditions such as minimum 20-year contract terms, upfront payment for all infrastructure improvements, "take-or-pay" billing requirements, exit fees for early termination or underutilization, and credit assurance mechanisms to protect other ratepayers. For the largest customers (those exceeding 100 megawatts), the bill adds an additional layer of restrictions, limiting eligibility to those who either secure their own dedicated energy resources or participate in a Commission-approved cost mitigation program. These provisions would significantly increase the financial obligations and operational constraints for data center operators seeking to locate large facilities in North Carolina. The bill was withdrawn from committee in its 2025 session, meaning it did not advance and its prospects for passage remain uncertain. Given the substantial barriers to large-load customer operations that the bill proposes, the withdrawal suggests either legislative reconsideration of its approach or insufficient support to move forward at this time.

House Bill 957 would amend Ohio's tax code to prohibit the state from granting new sales tax exemptions for data center equipment and related purchases. Currently, Ohio law allows the state's tax credit authority to negotiate agreements with data center operators that reduce or eliminate sales taxes on computer equipment, cooling systems, electrical infrastructure, and building materials used in data centers, provided the projects meet certain investment thresholds (at least $100 million in capital investment over a specified period) and job creation requirements (at least $1.5 million in annual employee compensation). The bill would block any new exemption agreements from being approved, effectively removing a major financial incentive that has previously attracted data center development to the state. This prohibition would apply only to future projects, leaving existing exemption agreements in place. The measure, introduced in the 136th General Assembly by Representative Rader and eleven cosponsors, was recently referred to committee, where it awaits further consideration. If enacted, the bill would likely reduce Ohio's competitive advantage in attracting large data center investments compared to other states that maintain similar tax incentive programs.

House Bill 646 would create a temporary Data Center Study Commission in Ohio to investigate the impacts of rapidly expanding data center development across multiple dimensions. The commission would consist of thirteen members appointed by the Governor, legislative leaders from both parties, and would be required to hold at least four public meetings within six months to gather testimony from the general public and subject matter experts. The commission's examination would cover environmental effects, electrical grid impacts, water usage, pollution concerns, economic effects, agricultural impacts, national security considerations, and alleged foreign propaganda campaigns related to data centers. Within six months of the commission's establishment, it would submit a report with findings and legislative recommendations to Ohio's Governor and General Assembly before automatically dissolving. The bill's emergency designation reflects concern that data center development is occurring rapidly without adequate regulatory frameworks or public information, creating uncertainty for both local communities and potential investors. As of its latest action, the bill has been recommitted, indicating it remains in the early legislative process and may be revised before proceeding.

The Data Center Accountability and Citizen Protection Act, introduced in Ohio's legislature in 2025, would impose new disclosure and inspection requirements on data centers seeking state or local economic development assistance. Under the bill, data center applicants would be required to disclose any outstanding liabilities to the state or local governments and authorize inspection of their personal or corporate financial statements, tax records, and similar financial information. The legislation specifically carves out an exception to Ohio's confidentiality protections for economic development assistance, making development and supply agreements related to data centers and associated power generating facilities available as public records, effectively removing privacy protections that other industries receive. False statements or failure to provide required information would render applicants permanently ineligible for future economic development assistance and require repayment of any funds already received. Data center industry professionals view these requirements as regulatory barriers that increase compliance costs and reduce the competitive incentives that typically attract such capital-intensive projects to a state. With its introduction in the 136th General Assembly, the bill's progression through committee and toward passage remains to be determined, though its comprehensive scope and specific targeting of the data center sector suggest significant industry opposition is likely.

House Bill 3621 would create the Oklahoma State Data Center as a formal entity within state government, placing it under the administrative direction of the Legislative Service Bureau. The center would serve as Oklahoma's primary hub for applied population research and would function as the official point of contact between the state and the United States Census Bureau, with responsibility for conducting special censuses statewide. The bill establishes 13 specific responsibilities for the center, including preparing and maintaining population statistics, providing demographic assistance to state agencies, supporting legislative reapportionment and redistricting efforts, managing geographic information system data coordination, and overseeing the 2030 Census Complete Count Committee. The legislation affects state demographic data collection and management operations, as well as coordination between state, local, tribal, and nonprofit organizations that rely on census data for planning and federal funding allocation purposes. Despite its title referencing data centers, the bill concerns population research and census administration rather than information technology infrastructure development, making it procedurally focused with no direct implications for physical data center development or technology industry incentives in Oklahoma. The bill has been referred to the Appropriations Committee and is scheduled to take effect November 1, 2026, if enacted.

House Bill 3620 would create a formal "2030 Census Complete Count Committee" charged with developing and implementing a comprehensive strategy to ensure Oklahoma achieves a full population count in the 2030 U.S. Decennial Census. The 16-member committee would include legislative representatives from both chambers and parties, state and local government officials, nonprofit representatives, and members of ethnic and language minority communities, with staff support provided by the State Data Center of the Legislative Services Bureau. The committee's responsibilities would encompass designing multilingual and multimedia outreach campaigns, establishing annual goals to reach hard-to-count populations, increasing self-response rates, coordinating with the U.S. Census Bureau, and making recommendations to state leadership. While this bill focuses primarily on census procedures and committee administration rather than data center development regulations or incentives, it does establish operational duties for the State Data Center as the support entity for the committee. The bill is currently referred to the Oklahoma House Appropriations Committee, where funding mechanisms for the committee's operations and campaigns would likely be evaluated. This procedural legislation aims to build on lessons from the 2020 Census and position Oklahoma to maximize population count accuracy, which has downstream implications for federal funding allocations and legislative representation.

House Bill 2992, approved by Oklahoma's Governor on May 11, 2026, establishes the Data Center Consumer Ratepayer Protection Act of 2026 and becomes effective on November 1, 2026. However, the legislative text provided contains only the bill's title, enactment language, and effective date without disclosing the specific substantive provisions that would comprise the actual protections or regulatory measures. The bill is designated as not to be codified in the Oklahoma Statutes, meaning it functions as a standalone law rather than being integrated into the permanent statutory framework. Without access to the full text detailing the Act's operational requirements, rate structures, consumer safeguards, or regulatory authority vested in Oklahoma's Corporation Commission, the precise impact on data center operations, electricity costs for ratepayers, or development incentives cannot be determined from this excerpt alone. The lack of substantive detail in the available documentation makes it unclear whether this legislation would facilitate data center expansion in Oklahoma, impose new compliance requirements on operators, protect consumers from rate increases, or establish other regulatory mechanisms. Industry stakeholders and the general public will need to review the complete bill text once the law takes effect in November 2026 to understand how it affects data center investment, utility rates, and consumer protections in the state.

Pennsylvania House Bill 2150 would require all data centers operating in the state with peak electric demand of 10 megawatts or greater to submit detailed annual reports to the Department of Environmental Protection documenting their energy consumption, water usage, efficiency measures, and waste heat recovery efforts. The reporting requirement takes effect July 1, 2027, and continues annually thereafter, with data centers required to specify energy sources, monthly consumption patterns, peak load usage, and water sourcing alongside their environmental and efficiency initiatives. The Department of Environmental Protection, working with the Pennsylvania Public Utility Commission, would compile and publish annual public reports analyzing statewide data center energy and water consumption trends and environmental impacts, with findings distributed to relevant legislative committees and the Governor. The bill applies to a broad range of facilities that house servers and data storage systems and maintain backup power and cooling infrastructure, capturing both standalone data centers and campus-style operations. Currently, the bill has been referred to the House Environmental Resources and Energy Committee following amendments in March 2026, positioning it within the legislative process for potential further consideration. For the data center industry, this legislation represents a significant compliance obligation that could affect operational planning and transparency but does not currently include financial incentives or tax relief to offset reporting burdens.

Pennsylvania House Bill 2151 would establish a new state-level resource to help local municipalities develop zoning ordinances for data center facilities by creating a model ordinance template and providing technical assistance. The bill directs Pennsylvania's Local Government Commission to develop and publish this model ordinance within nine months, incorporating standards for physical dimensions, placement by zoning district, visual screening, water and electrical infrastructure documentation, noise limits, emergency planning, and requirements for community benefits agreements that prioritize local workforce participation in data center construction. The model ordinance would include optional provisions that municipalities could apply based on their specific zoning districts and community needs, with the Local Government Commission required to update the template annually and solicit ongoing feedback from environmental groups, industry representatives, and municipal organizations. This legislation matters for Pennsylvania's data center development landscape because it aims to streamline and standardize the regulatory process across the state, reducing uncertainty for both developers and communities while ensuring that local concerns about water usage, noise, visual impact, and grid capacity are systematically addressed. The bill currently resides in the House Local Government Committee following its April 2026 amendment by the House Appropriations Committee, indicating it has advanced through at least one committee review. The broad bipartisan list of cosponsors suggests this legislation has substantial support among state legislators and reflects a strategy to position Pennsylvania competitively for data center investment while maintaining community protections through consistent local oversight.

Pennsylvania House Bill 2246 would establish new regulatory requirements specifically for "covered data centers" under the state's water resources law, giving the Department of Environmental Protection authority to require detailed preapplication notification about water use, impose additional permit conditions, mandate aquifer testing, and coordinate reviews with river basin commissions and other agencies. Before beginning operations, data center developers would need to submit comprehensive information about their water withdrawal plans, usage rates, and anticipated impacts on other water users, with the department required to assess whether adequate water supplies exist and whether the project would harm existing users or water quality. The department would be authorized to deny permits if it finds a reasonably foreseeable risk of adverse impacts to adjacent water users, public water systems, private wells, or other waters of the state, and would be required to monitor water sources after projects commence to track any negative effects. The bill emphasizes water conservation measures such as closed-loop systems, water recycling, and partnerships with local utilities as conditions for permit approval. The measure currently stands referred to the Environmental Resources and Energy Committee as of the latest legislative action, having been introduced with bipartisan sponsorship in February 2026. For the data center industry in Pennsylvania, this legislation would represent a significant increase in regulatory scrutiny and potentially lengthy approval timelines, particularly for facilities in areas served by river basin commissions or with limited water availability.

House Bill 2516 would establish a comprehensive regulatory framework for commercial data centers in Pennsylvania by amending the state's Municipalities Planning Code to define data centers, require municipalities to address them in comprehensive plans, and set zoning standards for their development. The bill defines a commercial data center as a facility with a peak electrical demand of 25 megawatts or greater used to house and operate data equipment, and it requires municipalities that permit such facilities to include them in their comprehensive plans while identifying suitable locations near existing infrastructure and areas to avoid, particularly agricultural lands. Local zoning ordinances that allow data centers would need to include standards addressing setbacks from residential areas, noise and lighting controls, water supply and groundwater management protections, emergency response planning, and site decommissioning requirements, with a minimum 2,500-foot setback between data center buildings and residences specified in the bill. Significantly, the bill prohibits data centers from being built on land within agricultural security areas or subject to agricultural conservation easements, providing protections for preserved farmland while allowing municipalities to adopt even stricter requirements if desired. The bill does not require any municipality to permit data centers, giving local governments discretion over whether to allow the use within their boundaries. The legislation is currently referred to the House Committee on Local Government and reflects a pro-development approach that aims to facilitate data center growth in Pennsylvania while establishing baseline protections for residential and agricultural interests.

Pennsylvania House Bill 2515, known as the Commercial Data Center Transparency Act, would require commercial data centers with a peak power demand of 25 megawatts or greater to disclose their energy, water, and noise impacts to state regulators and local communities. The bill imposes specific reporting obligations on applicants, including disclosure statements in all permit applications related to water use, wastewater, air quality, transportation, and other environmental matters, along with detailed submissions to the Department of Environmental Protection for facilities using more than 100,000 gallons of water per day or 20,000 gallons of consumptive water use daily. Under the legislation, the Department of Environmental Protection would administer water use transparency requirements, the Department of Transportation would oversee noise monitoring, and the Office of Attorney General would enforce violations through civil penalties. The bill affects data center developers and operators seeking permits in Pennsylvania by requiring extensive documentation and public notification to counties and municipalities where projects are proposed. Currently referred to the House Energy Committee as of May 2026, the legislation reflects growing concerns among Pennsylvania policymakers and residents about the environmental costs of data center expansion, particularly regarding water consumption in regions already facing water stress. The regulatory framework would make Pennsylvania significantly more stringent in data center oversight compared to many other states, potentially influencing site selection decisions by the industry.

Pennsylvania's Senate Bill 1323, known as the Data Center Act, would establish a comprehensive regulatory framework for commercial data centers with peak demand of 25 megawatts or greater, requiring them to procure or pay for "clean firm energy" resources such as nuclear, hydroelectric, solar, wind, geothermal, battery storage, and hydrogen-fueled generation that became operational after January 1, 2025. The bill would task the Pennsylvania Public Utility Commission with overseeing compliance through contract filing and review, while also creating two new funding mechanisms: the Data Center Low-Income Home Energy Assistance Program Enhancement Account and the Pennsylvania Energy Independence Account, the latter of which would support low-income heating assistance and clean energy projects. In exchange for meeting these clean energy requirements, data centers would qualify for expedited interconnection to the grid and other regulatory benefits that could accelerate their development and deployment. The legislation explicitly prohibits cost-shifting to utility ratepayers and establishes standards for backup generation, curtailment procedures, and disclosure requirements to ensure transparency and grid reliability. Currently referred to the Pennsylvania Senate's Consumer Protection and Professional Licensure Committee as of May 20, 2026, the bill has been introduced by a bipartisan group of eight senators and represents an approach that aims to attract data center investment while conditioning that development on demonstrable commitments to clean energy and support for low-income energy assistance. The bill's pro-development classification with environmental guardrails suggests it could appeal to industry stakeholders seeking regulatory certainty and expedited permitting while also addressing concerns about energy consumption and equity from policymakers and community advocates.

Pennsylvania House Bill 2533 would amend the state's Municipalities Planning Code to allow local governments to temporarily pause applications and filings for large data center projects through an optional zoning moratorium lasting up to 18 months. During a moratorium period, municipalities would be required to conduct planning studies and infrastructure assessments related to water, wastewater, electrical capacity, public safety, and environmental impacts, then use these findings to potentially update their zoning and land development codes to regulate high-impact data centers. The bill includes safeguards such as requiring municipalities to hold a public hearing before adoption, providing applicants with a process to request waivers for hardship cases, and explicitly exempting maintenance at existing facilities and approvals already granted. The legislation affects Pennsylvania's municipal governments and the data center industry by giving local communities a structured tool to study and potentially restrict large-scale data center development, though it does not mandate that any municipality use this authority. The bill is currently referred to the House Committee on Local Government, where it awaits further consideration. For jurisdictions concerned about the rapid expansion of data centers and their potential strain on infrastructure and resources, this measure would provide time to assess impacts before committing to large projects, while the data center industry may view it as a potential obstacle to development in Pennsylvania.

Pennsylvania House Bill 2532 would repeal Article XXIX-D of the state's Tax Reform Code of 1971, which currently provides a computer data center equipment incentive program that offers favorable tax treatment for equipment purchases and installations at data centers in the state. The bill would eliminate this longstanding incentive program, which has defined and supported a broad range of data center equipment including servers, cooling systems, power infrastructure, and related technology since at least 2014. The legislation would also redirect tax revenue previously exempted or reduced under this incentive program, transferring certain taxes from computer data center equipment sales and establishing a restricted account within the Motor License Fund. For Pennsylvania's data center industry, this represents a significant policy shift that would remove a key competitive advantage the state previously offered to attract and support data center investments and operations. The bill was introduced on May 26, 2026, and referred to the House Committee on Finance on May 27, 2026, where it currently awaits consideration. If enacted, this legislation would likely reduce the financial incentives for new data center development in Pennsylvania and could affect the competitiveness of the state's data center sector compared to other jurisdictions that maintain such tax incentives.

Pennsylvania House Bill 2539 would modify the state's Computer Data Center Equipment Incentive Program by adding new environmental certification requirements and clarifying application procedures for tax incentives. Specifically, the bill requires data center operators seeking sales and use tax refunds or exemptions to obtain environmental certification within two years of receiving state certification, with acceptable standards including LEED Silver level, Energy Star, Green Globe, ISO 50001, ISO 14001, or equivalent Department of Environmental Protection-approved certifications. The legislation affects data center owners and operators in Pennsylvania who currently participate in or plan to apply for the state's tax incentive programs, potentially making these programs more accessible while adding compliance obligations focused on energy efficiency and environmental management. The bill introduces both administrative changes to the certification application process and substantive new environmental standards that operators must meet to maintain eligibility for tax benefits. Currently referred to the House Committee on Finance as of May 27, 2026, the bill represents a legislative effort to balance economic incentives for data center development with environmental performance expectations. The sixty-day implementation timeline indicates the bill is designed for relatively quick adoption once approved, suggesting lawmakers view these modifications as straightforward technical amendments to existing programs.

Pennsylvania Senate Bill 1344 would repeal Article XXIX-D of the Tax Reform Code of 1971, which established a computer data center equipment incentive program that has provided tax breaks to data center operators and tenants since 2014. The repealed program offered favorable tax treatment for qualifying data centers and their tenants during a 15-year qualification period for facility owners and operators or a 10-year period for qualified tenants, with detailed definitions covering equipment used for servers, cooling systems, power infrastructure, water conservation, software, and security systems. By eliminating this incentive program, the bill would remove tax advantages that have previously made Pennsylvania more competitive for data center investments and operations. The legislation also directs that taxes collected from certain sales of computer data equipment be transferred and establishes a restricted account in the Motor License Fund, though the excerpt does not provide full details on this revenue allocation mechanism. The bill was introduced on June 4, 2026, by state senators Coleman and Gebhard and was immediately referred to the Finance Committee, where it currently remains. The repeal of these long-standing incentives could significantly impact Pennsylvania's ability to attract new data center projects and retain existing operations, particularly as other states continue to offer competing tax incentive packages.

Pennsylvania Senate Bill 1359 would impose a three-year statewide moratorium on the development and permitting of hyperscale data centers, defined as large computer facilities with monthly power demands of at least 20 megawatts in major utility service areas or one megawatt in smaller areas. The moratorium would also block permits for expansions of existing data centers that would push them into hyperscale status, as well as related infrastructure projects such as new power plants and transmission lines needed to support these facilities. The bill would prohibit state agencies, municipalities, and public benefit corporations from accepting or approving any applications for data center development during the 36-month period, with any permits issued in violation of the law rendered void. Currently, the bill has been referred to the Pennsylvania Senate's Local Government Committee as of June 4, 2026, which is an early stage in the legislative process. The measure, introduced by Senators Muth, Comitta, and Brown, directly addresses concerns about the rapid growth of data center development and its impacts on Pennsylvania's energy infrastructure and communities. If enacted, Pennsylvania would effectively halt new hyperscale data center investment in the state while policymakers study the implications of such facilities.

Pennsylvania House Bill 2650 would eliminate the existing computer data center tax incentive program under the state's Tax Reform Code of 1971 and replace it with a new "Governor's Responsible Infrastructure Development" (GRID) certification program that imposes strict energy sourcing requirements on data centers. Under the bill, new data centers seeking tax benefits would be required to procure "clean firm energy" from sources including nuclear, hydroelectric, geothermal, solar, wind, fuel cells, and battery storage systems, with this energy capacity having been placed in service after January 1, 2025. Data centers that cannot meet these clean energy procurement requirements would have the option to make "alternative compliance payments" to the Pennsylvania Economic Development Authority at a rate calculated as double the estimated cost of solar photovoltaic electricity. The bill affects all future data center development in Pennsylvania by making tax incentives contingent on environmental compliance rather than offering them as an automatic benefit, which represents a significant shift in the state's approach to attracting data center investment. The measure has been referred to the House Finance Committee and, according to legislative tracking, carries anti-industry sentiment due to the new burdens and restrictions it places on data center certification and operations. For industry stakeholders and policymakers, this bill signals a potential pivot toward conditioning infrastructure incentives on clean energy requirements, which could either drive green data center development or deter projects that cannot meet the stringent procurement standards.

House Bill 2198 would repeal Pennsylvania's Computer Data Center Equipment Incentive Program, which previously provided tax benefits and exemptions to data center operators and their tenants. The program, established under Article XXIX-D of the Tax Reform Code of 1971, offered incentives for investments in data center infrastructure including servers, cooling systems, power supply equipment, and related technology. The incentive program had applied to computer data centers engaged in various activities, including proof-of-work cryptocurrency mining operations, and provided qualifying owners and operators with tax breaks during a 15-year certification period. The bill, introduced in February 2026 with broad bipartisan support from 35 House members, was amended in June 2026 and is currently referred to the Finance Committee. Eliminating these incentives would remove a significant financial advantage that Pennsylvania previously offered to attract data center development and operations within the state, potentially affecting both new data center investments and existing facilities benefiting from the program. The elimination of cryptocurrency mining incentives suggests legislative concern about energy consumption, environmental impacts, or other effects associated with proof-of-work mining operations in particular.

House Bill 2496 would amend Pennsylvania's Municipalities Planning Code to allow local governments to impose temporary pauses on accepting new data center development applications for up to 180 days. During such a pause, all processing timelines and application deadlines would be suspended, and municipalities could adopt, amend, or repeal zoning and land use ordinances specifically targeting data centers, with new applications submitted during the pause subject to whatever regulations are adopted. Applications submitted before a pause takes effect would continue to be processed under the rules in place when they were originally filed, and municipalities would be prohibited from considering applications during a pause by adding them to meeting agendas. The bill would limit municipalities to implementing such pauses only once every 18 months and explicitly preserves local authority to deny data center applications that fail to comply with other applicable regulations related to environmental protection, utilities, noise, safety, and other land use concerns. Currently, the bill has been re-referred to the Rules and Executive Nominations Committee in the Pennsylvania Senate after being amended by the Senate Local Government Committee. The legislation effectively gives municipalities a tool to slow or shape data center development by creating a window for regulatory changes, which would significantly impact the timeline and feasibility of data center projects in Pennsylvania.

This Pennsylvania bill modifies the state's computer data center equipment incentive program by updating definitions, application procedures, and eligibility requirements related to sales and use tax refunds and exemptions for data center operators. The legislation adds new community protection requirements that obligate data center owners and operators to notify local municipalities, conduct public meetings, consult with elected officials, and submit detailed facility footprint reports documenting their operations and any on-site electricity generation plans. These community engagement and transparency provisions represent a shift in the incentive program toward balancing tax benefits with local accountability, requiring operators to demonstrate community input and environmental planning before or shortly after certification. The bill affects data center developers and operators seeking tax incentives in Pennsylvania as well as municipalities and residents in areas where such facilities are proposed. Currently referred to the Finance committee, the bill has broad bipartisan sponsorship with over forty House cosponsors and was amended during second consideration in June 2026, suggesting it has moved through initial legislative stages with notable support. The provisions indicate Pennsylvania's intent to maintain tax competitiveness for data center investment while imposing procedural requirements that give communities visibility and voice in major facility development.

Senate Bill 1384 would fundamentally restructure Pennsylvania's tax incentive program for computer data centers by prohibiting the Department of Revenue from certifying any new facilities under the existing Computer Data Center Equipment Incentive Program and replacing it with a new Governor's Responsible Infrastructure Development (GRID) certification program. Under the new GRID framework, data centers seeking tax benefits would be required to procure "clean firm energy" from sources such as nuclear, hydroelectric, solar, wind, geothermal, or battery storage facilities placed into service after January 1, 2025, or alternatively make substantial per-megawatt-hour payments to the Pennsylvania Economic Development Authority as a compliance alternative. The bill defines clean firm energy narrowly to include only new or upgraded renewable and nuclear resources that can provide firm, dispatchable power, effectively requiring data centers to finance or directly procure new clean energy infrastructure to qualify for state tax benefits. This legislation affects any company seeking to build or expand a data center operation in Pennsylvania and represents a significant shift in state policy toward conditioning business incentives on renewable energy commitments. The bill is currently referred to the Senate Finance Committee as of July 2026, where it will likely face scrutiny from both industry stakeholders concerned about competitiveness and environmental advocates focused on Pennsylvania's clean energy transition. The measure reflects growing state-level interest in linking economic development incentives to climate and energy policy goals.

Senate Bill 1345 would amend Pennsylvania's Municipalities Planning Code to give local governments the option to temporarily halt the acceptance and review of new applications for "high impact data centers" through either an ordinance or resolution. The moratorium would be capped at 18 months and would apply to various types of applications related to data center projects, including zoning changes, conditional use permits, variances, land development plans, and building permits tied to data center approvals, though it would not affect applications unrelated to data centers or prevent enforcement of existing violations. During the moratorium period, municipalities would be required to undertake planning activities such as infrastructure capacity assessments for water, wastewater, and electrical systems; public safety impact analysis; environmental and community evaluations; and potential drafting of new zoning or land development regulations specific to data centers. Before adopting such a moratorium, a municipality must hold a public hearing with proper notice and provide findings that justify the need for the pause and explain how it relates to the planned studies and ordinance development work. The bill currently has completed second consideration in the Senate and would allow communities concerned about the rapid expansion of data center facilities to gain time for comprehensive planning before approving new projects. This legislation would give Pennsylvania municipalities a tool to manage the pace and impact of data center development in their jurisdictions, particularly in areas experiencing or anticipating pressure from data center proposals.

Pennsylvania Senate Bill 1408, known as the Data Center Nondisclosure Agreement Prohibition Act, would ban public agencies in the state from entering into agreements with data center owners or operators that restrict the disclosure of information about the facility's construction, development, location, or the terms of any such agreement itself. The bill defines data centers broadly as facilities housing servers or data storage systems equipped with backup power and cooling infrastructure, and it applies to all Commonwealth and local agencies as defined under Pennsylvania's Right-to-Know Law. Under the proposed legislation, any agreement violating this prohibition would be declared void and unenforceable, effectively preventing both state and local governments from committing to confidentiality in their dealings with data center developers. The bill matters for data center development in Pennsylvania because it introduces a transparency requirement that could affect negotiation dynamics between local communities and data center companies, potentially making it harder for companies to keep project details private during preliminary discussions or to negotiate confidential terms related to incentives, infrastructure needs, or operational plans. The bill was referred to the Communications and Technology Committee on July 20, 2026, and its progression will depend on committee action, though the neutral framing suggests it is positioned as a disclosure mandate rather than an incentive or burden on the industry itself. The legislation would take effect 60 days after passage if enacted.

South Carolina's Data Center Development Act would establish a comprehensive regulatory framework for data center facilities by creating a dedicated Development Office within the Department of Environmental Services and implementing a streamlined permitting process for data centers with a combined electrical load of at least one megawatt. The legislation applies performance-based rather than prescriptive operational standards covering energy efficiency and water usage, requires annual reporting from operators, and mandates environmental impact assessments and infrastructure adequacy reviews before siting approval. The bill addresses the significant utility demands of data centers by giving the Public Service Commission authority over rate structures and cost allocation methodologies to protect existing ratepayers while accommodating this new category of large electricity consumer. To encourage development on previously used industrial sites, the act provides financial incentives for brownfield locations and establishes a two-year transition period prioritizing technical assistance and guidance over enforcement to help the industry adapt to new requirements. The bill also requires data center operators to submit decommissioning plans with financial assurances, implement noise and light mitigation measures, and protect confidential business information shared with state regulators. As of the latest legislative action, a scrivener's error has been corrected, indicating the bill is moving forward in the legislative process with high confidence support for establishing South Carolina as a competitive data center development location.

Tennessee's Public Chapter 961 prohibits municipalities and electric utilities from paying for or absorbing the costs of electrical infrastructure needed to serve data centers, instead requiring data center owners and operators to bear the full financial burden of these upgrades. The law applies to new data centers, expansions of existing facilities, and modifications, and defines infrastructure broadly to include not only electrical equipment like substations and transformers but also related systems such as water, wastewater, natural gas, telecommunications, and storm water facilities. Electric utilities are further required to ensure through their ratemaking practices that data center infrastructure costs are borne solely by the data center operator and are not passed along to residential customers or other commercial and industrial customers, with utilities authorized to create a separate customer class for data centers if necessary to comply with this requirement. The legislation allows residents and other utility customers to file complaints with the Tennessee Public Utility Commission or a utility's governing board if they believe the utility has violated these cost-allocation rules. As enacted legislation, this law is now in effect and represents Tennessee's policy choice to facilitate data center development by removing the financial obstacles that might otherwise deter such projects from locating in the state. The measure reflects a pro-development approach that shifts infrastructure investment responsibility entirely to the private sector while protecting existing utility customers from bearing any portion of the costs associated with data center operations.

Tennessee's Public Chapter 961, enacted through Senate Bill 2128 and House Bill 1847, fundamentally restructures how data center infrastructure costs are allocated in the state by requiring data center owners and operators to pay the full cost of all electrical, water, telecommunications, and other utility infrastructure needed to support their facilities, with no ability for municipalities or electric utilities to absorb or subsidize those expenses. The law applies to new data centers, expansions of existing facilities, and modifications, and it explicitly prohibits electric utilities from raising rates on residential customers or other commercial and industrial customers to offset the costs of serving data centers, with utilities required to make public written findings certifying that any rate increases are unrelated to data center operations. The legislation covers a broad range of infrastructure including electrical transmission lines, substations, transformers, water and wastewater systems, natural gas lines, fiber optic connections, and storm water facilities, defining "cost of infrastructure" to encompass all expenses that can be capitalized under accounting standards plus any fees imposed by municipalities or utilities as conditions of service. Electric utilities are given the option to create a separate customer class for data centers to ensure cost separation, and the law establishes complaint mechanisms allowing affected customers and utility membership organizations to challenge utilities before the Tennessee Public Utility Commission or local utility governing boards if they believe costs are being improperly shifted. This legislation has already been enacted, making it current law in Tennessee and setting a restrictive framework that will significantly impact data center development economics and site selection decisions in the state. The bill represents a substantial policy shift that prioritizes protecting existing utility customers from cost-shifting while placing the full financial burden of facility-specific infrastructure on data center operators.

Vermont's H.727, the "Vermont Sustainable Data Centers Act," establishes a comprehensive regulatory framework designed to manage large-scale data center development in the state by requiring the Public Utility Commission to create a separate ratepayer class for facilities using 20 megawatts or more of power, implement standardized tariffs that allocate infrastructure costs directly to data centers, and mandate specific contract provisions including minimum 10-year service agreements, collateral requirements, and minimum payment obligations. The bill also requires data centers to obtain a certificate of public good from the Commission before construction, with approval contingent on findings that the facility will not interfere with regional development, will maintain grid efficiency and reliability, will provide economic benefit to the state and residents, and will not cause undue adverse environmental or community impacts. The legislation affects data center operators, electricity distribution companies, existing residential and business ratepayers, and municipalities where such facilities might be sited. The bill matters for Vermont's data center development because it establishes substantial regulatory barriers and cost-allocation mechanisms that industry stakeholders argue will discourage investment in the sector while proponents contend will protect existing ratepayers and communities from bearing infrastructure costs. As of the latest legislative action, the Governor vetoed the bill and that veto was sustained by a vote of 83 to 52 in the legislature, effectively killing the measure for the current session and indicating strong legislative divisions over whether such regulatory restrictions serve the state's interests.

Senate Bill 521 would require all new data centers and substantially expanded data center facilities in Virginia to install and maintain rainwater harvesting systems capable of capturing runoff from at least 30 percent of their roof surface area. The harvested rainwater would be used for non-potable purposes such as irrigation or cooling systems rather than for human consumption. The bill defines a "substantial expansion" as an increase in a data center's footprint exceeding 10 percent and establishes that rainwater harvesting systems must be designed, installed, and inspected by personnel certified by the American Society of Sanitary Engineering to meet safety and performance standards. The legislation was introduced on January 14, 2026 and referred to the Senate Committee on Agriculture, Conservation and Natural Resources, where it has continued from the previous legislative session. For data center operators and developers, this mandate would impose capital costs and ongoing compliance requirements as they plan new facilities or major expansions in the state. The bill reflects growing state interest in water conservation and sustainable infrastructure practices, though industry stakeholders may view the requirement as an additional regulatory burden on data center development.

Senate Bill 336 directs Virginia's State Corporation Commission to evaluate the feasibility and impact of restricting data center use of older Tier 2 diesel generators, which produce higher emissions, and requiring the industry to transition toward cleaner Tier 4 equivalent generators. The evaluation would examine whether data centers should be limited to using Tier 2 generators only during sudden and unforeseeable outages rather than for planned maintenance, and would assess the feasibility of requiring annual retrofits of at least 20 percent of data center Tier 2 fleets over a five-year period until full compliance is achieved. The Commission would also study how other states regulate data center generators and compare data center generator regulations to those governing hospitals and public universities within Virginia. The bill imposes no immediate restrictions on data center operations but rather requires a comprehensive study with findings due to the legislature by October 15, 2026, representing a continuation of discussion from the previous legislative session. For the data center industry, this represents a potential regulatory pathway that could significantly increase operational costs and compliance burdens if implemented based on the Commission's recommendations. The study reflects growing state concern about emissions and operational planning within the rapidly expanding data center sector in Virginia.

Virginia's Great Outdoors Act would establish a new data center land conservation tax beginning July 1, 2028, with revenues of at least $250 million annually dedicated to land preservation, conservation, and support for Virginia tribal communities. The bill amends Virginia's tax code to create this special tax on data center operations and directs the collected revenues to support the protection and preservation of ecologically, culturally, or historically significant lands, recreational areas, and working farms and forests. A portion of revenues would be deposited into a newly created Virginia Tribal Commitment Fund to assist tribal nations with land acquisition, cultural revitalization, and capacity building. For data center operators and developers considering Virginia locations, this legislation represents a significant ongoing operational cost that would not exist in other jurisdictions, potentially affecting the economic competitiveness of the state for data center investment. The bill has been introduced in the 2027 legislative session and is currently referred to the House Committee on Finance, meaning it has not yet advanced beyond the initial committee stage. Given the bill's "continued from last session" status and its assignment to a key fiscal committee, the trajectory will likely depend on whether there is sufficient support among lawmakers to advance it forward for floor consideration and votes.

Senate Bill 93, introduced in Virginia's 2027 session, would amend the state's tax code to clarify exemptions and tax treatment for tangible personal property, with specific provisions affecting data centers and financial institutions. The bill modifies sections 58.1-609.3 and 58.1-1203 of the Code of Virginia, which govern commercial and industrial sales tax exemptions and bank franchise tax calculations. While the excerpt provided does not show the specific data center provisions in full detail, the bill addresses which types of property and equipment qualify for tax exemptions when used by various industries and entities. The legislation is currently in the Senate Finance and Appropriations Committee following its introduction by Senators Roem and Delegate Maldonado in January 2026 and continuation from the prior legislative session. For data center operators and financial institutions operating in Virginia, the clarifications in this bill could affect their tax obligations on equipment, machinery, and other tangible property used in their operations. Understanding how these tax exemptions apply will be important for companies evaluating the cost of establishing or expanding data center facilities in the state.

Senate Bill 466, introduced in Virginia's 2027 legislative session, seeks to amend the state's electric utility rate-setting statute to allow utilities to recover infrastructure costs associated with serving data center customers. The bill modifies Section 56-585.1 of the Virginia Code, which governs how the State Corporation Commission determines rates and returns for investor-owned electric utilities, by creating mechanisms that enable utilities to recoup investments in electric distribution infrastructure specifically dedicated to large data center operations. This change would reduce financial barriers for utilities serving data centers by ensuring they can recover the substantial upfront capital costs of building out specialized infrastructure to meet the intense and unique power demands of these facilities. The bill affects electric utilities, data center operators and developers, and potentially electricity consumers whose rates could be influenced by these new cost recovery provisions. For Virginia's data center industry, this legislation represents a potentially significant development incentive by making it more economically feasible for utilities to invest in the infrastructure necessary to attract and serve major data center clients. The bill has been continued from a previous legislative session and is currently referred to the Senate Committee on Commerce and Labor, suggesting ongoing deliberation on how to balance utility financial interests with broader economic development goals.

House Bill 1515, introduced in Virginia's 2027 legislative session, would impose a temporary moratorium on local government approval of new data center projects by prohibiting localities from granting final approval for rezoning, special exceptions, special use permits, site plans, or plans of development related to data center siting. The moratorium would remain in effect until the earlier of two conditions: either July 1, 2028, or until all pending utility interconnection requests from existing data center customers have been fulfilled, whichever comes first. This measure directly affects data center developers, utility companies, and local governments in Virginia, as it effectively pauses the approval process for new data center facilities during a period when electricity demand from data centers has become a significant policy concern. The bill matters for Virginia's data center industry because the state has become a major hub for such facilities, and this moratorium could delay or prevent new projects from moving forward while pending interconnection issues are resolved. The bill is currently referred to the House Committee on Rules and represents a continuation of legislative efforts from the previous session, suggesting ongoing policy debate around data center expansion and its infrastructure impacts. The anti-development sentiment underlying this proposal indicates growing concern among Virginia lawmakers about the strain data centers place on the electrical grid and local resources.

House Bill 503, introduced in the Virginia General Assembly on January 14, 2026, proposes to amend the state's electric utility rate regulations to allow utilities to recover costs that are substantially related to serving data center customers. The bill modifies section 56-585.1 of the Virginia Code, which governs how the State Corporation Commission determines fair rates of return and cost recovery for investor-owned electric utilities. By explicitly permitting utilities to recoup expenses tied to data center service provision, the legislation removes potential financial barriers that could otherwise discourage utilities from investing in the infrastructure necessary to support data centers, which typically require significant and specialized electrical capacity. This change could facilitate data center development and expansion in Virginia by ensuring that utilities can maintain economic viability while meeting the substantial power demands of this sector. The bill was referred to the House Committee on Labor and Commerce and has continued from the previous legislative session, indicating ongoing consideration by lawmakers. For industry professionals and policymakers tracking data center development in Virginia, this legislation represents an important regulatory adjustment that could influence the state's competitiveness in attracting data center investments.

This Virginia bill would create a local residential renewable energy incentive program funded by tax revenue growth from data centers. Localities with at least 20 data centers would be required to establish special funds that capture incremental tax revenue from increases in data center property values above a baseline set on July 1, 2026, while directing normal baseline tax revenue to general budgets as usual. The accumulated incentive funds must be used first to reduce residential utility bills, then to invest in renewable energy resources with priority given to residential solar and battery storage systems, with at least 15 percent of new data center revenue dedicated to these investments. The bill creates a mechanism that allows communities to benefit directly from data center growth through renewable energy projects rather than letting all tax increases flow into general municipal budgets, potentially reducing local opposition to data center expansion. The legislation has been continued from a previous session and remains in the House Finance Committee, indicating ongoing deliberation about its implementation details and fiscal impacts. For data center developers and property owners, the bill represents an incentive framework that ties their operations to community energy benefits while for residents it could mean direct utility bill reductions and expanded access to solar installations funded by data center growth.

Virginia House Bill 591 would establish state policy to encourage responsible data center operations while balancing grid reliability, affordability, and renewable energy deployment. The bill directs the Commonwealth to take six specific actions, including promoting coordination between data centers and grid operators to share information on energy usage and renewable resource deployment, incentivizing data center participation in demand response programs and energy storage systems, and encouraging flexible energy practices that align consumption with renewable generation availability. The legislation also requires large-scale data centers to contribute equitably to infrastructure costs to prevent shifting expenses to residential and small business ratepayers, and mandates that data centers report their water and energy usage along with sustainability and grid support program participation to state and federal agencies. Additionally, the bill directs the state to promote cybersecurity and supply chain security measures to protect Virginia data centers from foreign adversary compromise. The bill is currently in the 2027 legislative session and has been referred to the House Committee on Labor and Commerce after being engrossed with amendments. As a pro-development measure with provisions addressing environmental and grid concerns, the bill appears designed to attract data center investment to Virginia while establishing frameworks to manage the industry's significant energy and infrastructure demands.

Senate Bill 393, known as Virginia's Great Outdoors Act, would establish a new "data center land conservation tax" designed to generate no less than $250 million annually beginning July 1, 2028, with revenues dedicated to land preservation and conservation efforts across the Commonwealth. The bill creates a framework for distributing these tax revenues to protect lands of ecological, cultural, or historical importance, as well as recreational areas and working farm and forest lands, while also establishing a Virginia Tribal Commitment Fund to support tribal nation building, cultural revitalization, and tribal land acquisition. For the data center industry in Virginia, this legislation represents a significant ongoing financial obligation that will increase operational costs for data center operators and developers, potentially affecting the economics of new facility construction and expansion in the state. The bill was introduced on January 14, 2026, and referred to the Committee on Agriculture, Conservation and Natural Resources, where it continues from the previous legislative session. This measure reflects a policy decision by Virginia lawmakers to link data center development to environmental and cultural conservation funding, though the substantial annual revenue requirement may influence industry investment decisions and competitiveness relative to other states. The current status indicates the bill remains under committee consideration with no indication of imminent floor action.

Virginia House Bill 607 would direct the Department of Environmental Quality to conduct a three-year study examining the cumulative air pollution impacts from data center generators across areas with high concentrations of these facilities. The study would analyze multiple operational scenarios including planned outages, grid strain events, demand response use, and primary power supply use, while evaluating how emissions vary by generator type and number of simultaneous operations. The bill specifically requires the department to assess exposure risks to vulnerable populations including elderly residents, schools, daycares, hospitals, low-income communities, and majority-minority communities, as well as to examine how generator operation timing correlates with existing air quality conditions and public health outcomes. Currently carried over from the previous legislative session, the bill represents a precursor step that could establish the factual and scientific foundation for future regulatory decisions about data center generator permitting and air quality monitoring in Virginia. For the data center industry in Virginia, this study signals potential policy tightening around generator operations, as the current permitting system evaluates generators individually rather than cumulatively, and the bill's focus on environmental justice communities suggests regulatory changes could be more restrictive in densely populated or already-polluted areas. The Department must report its findings and recommendations to relevant legislative committees by October 1, 2029.

Engrossed Substitute Senate Bill 6231 removes Washington state's tax exemption for equipment replacement at data centers, a change designed to increase state revenue for general fund services. The bill eliminates the sales tax exemption that previously applied to purchases of replacement server equipment and related power infrastructure at qualifying data centers, effectively increasing operational costs for data center operators. The legislation caps new exemption certificates at six per year for refurbished data centers and prohibits any new certificates for refurbished facilities after July 1, 2026, while allowing existing exemptions to gradually expire through 2048. This change represents a significant shift in Washington's approach to data center tax incentives, as the legislature determined that the long-standing exemption no longer aligns with modern economic policy priorities and that revenue is needed for essential state services. The bill affects all data center operators seeking to replace or upgrade equipment in the state, potentially making facility expansions or modernization projects more expensive and less competitive compared to other jurisdictions. With an effective date of June 11, 2026, the measure is expected to generate additional state revenue while potentially reducing Washington's attractiveness as a location for new data center development or expansion.

House Bill 4983 authorizes the West Virginia Department of Commerce to create and enforce regulatory rules governing the certification of high impact data centers and microgrid districts within the state. The bill specifically approves a legislative rule (145 CSR 20) that was initially filed in January 2026, modified in response to legislative review committee objections, and refiled in late January, with one amendment requiring that certification standards address the "use or access of water" alongside other criteria. This authorization is significant because it establishes a formal certification process that gives data center developers clear pathways for regulatory recognition and potentially streamlined permitting, which can reduce barriers to launching major data center projects in West Virginia. The legislation was enacted in March 2026 and took effect immediately upon passage, making it operative law as of that date. For industry stakeholders and communities, the rule framework will determine what qualifications and standards data centers must meet to achieve "high impact" status, a designation that likely carries implications for tax incentives, infrastructure investment, or other favorable regulatory treatment. The inclusion of water access and use language reflects West Virginia's consideration of data centers' operational needs and environmental impacts, particularly relevant given that cooling water is a critical resource for large data center facilities.