Legislation

The RECLAIM Act, introduced in the Senate in October 2026, would prohibit large artificial intelligence-focused data centers from receiving any federal financial assistance or tax incentives and would impose a 100 percent federal excise tax on state and local incentives they receive. The bill defines "covered data centers" as facilities with at least 100 megawatts of contracted peak power demand where at least 50 percent of compute accelerators are AI chips used for training, fine-tuning, or inference. This means that any tax breaks, grants, loans, or other financial benefits that states or localities currently offer to attract data center development would be subject to a federal tax equal to the full value of those incentives, effectively neutralizing them. The bill would significantly reshape data center development incentives across the country by eliminating a major tool that states and municipalities have used to compete for high-value technology infrastructure projects. As of late September 2026, the bill has been referred to the Senate Committee on Finance and has not yet advanced further. Given the substantial opposition such a measure would likely face from state and local governments, technology companies, and communities seeking economic development, its passage trajectory remains uncertain.

The Make Data Centers Pay Act would amend federal power law to require data centers and high-density computing facilities with electricity loads of 20 megawatts or more to pay the full incremental cost of electricity infrastructure serving them without subsidization from other ratepayers. The bill defines "incremental cost" to include all expenses for constructing, owning, and operating power generation, storage, and transmission systems needed to serve data center operations, and it requires data centers to provide upfront financial assurances or contributions to cover the costs of necessary utility upgrades before construction begins. The legislation aims to protect residential and commercial electricity customers from bearing costs associated with the substantial power demands of data centers, artificial intelligence systems, cryptocurrency mining operations, and cloud computing facilities. The bill applies prospectively to new data center projects and maintains cost recovery obligations even if a data center exits its service contract early, ensuring utilities can recoup their infrastructure investments. Currently referred to the House Committee on Energy and Commerce, the bill would significantly increase the upfront financial burden on data center developers and operators, potentially affecting the economic feasibility and location decisions for future data center projects in regions under federal regulatory jurisdiction.

The Data Center Transparency Act of 2026 would require the Environmental Protection Agency and Energy Information Administration to collect and publicly report detailed data on the environmental and energy impacts of large data centers consuming at least 50 megawatts daily. The EPA would issue quarterly reports tracking water consumption, water reuse practices, effects on local water systems and potable water availability, pollutant discharges, and greenhouse gas emissions from data centers, with specific attention to impacts on overburdened communities. The Energy Information Administration would publish semi-annual reports on total energy consumption by data centers disaggregated by state, new data center openings, energy grid buildout related to data center expansion, and potential effects on household energy bills and costs. The bill establishes no restrictions on data center development or operations, instead focusing solely on creating systematic transparency about their resource consumption and environmental effects. Currently in the early stages of the legislative process, the bill was read twice and referred to the Committee on Environment and Public Works in late September 2026, suggesting it remains in committee review. For industry stakeholders, communities, and policymakers, the bill's significance lies in establishing baseline data that could inform future regulatory decisions while immediately increasing public visibility into data centers' substantial demands on water and electricity infrastructure.

Senate Bill 5658, introduced by Senator Wyden in late September 2026, would establish a broad prohibition on constructing data centers on federal lands, including all National Forest System lands and lands managed by the Department of the Interior, with a significant carve-out for tribal lands. The bill defines "data center" by reference to the Energy Independence and Security Act of 2007 and would apply this prohibition going forward, while also requiring that any future sales or transfers of federal land include a reversionary clause that would return the land to federal ownership if it were ever used for data center purposes, unless specifically authorized by Congress. The legislation would substantially restrict where major technology and cloud computing companies can develop new data center facilities in the United States, affecting a vast portfolio of federal property across the country. The restriction matters because federal lands represent a significant portion of available real estate in many western states, and data centers require large tracts of land, substantial water resources, and reliable power infrastructure that federal properties sometimes provide. The bill has been read twice and referred to the Senate Committee on Energy and Natural Resources as of early October 2026, where it will likely face debate regarding environmental protection concerns on one side and economic development and technology industry interests on the other. The bill's passage prospects will depend substantially on the committee's assessment and whether proponents can demonstrate that federal land protection outweighs potential economic costs to the data center industry and related computing infrastructure development.

The Data Center Community Empowerment Act of 2026 would require the Secretary of Energy to establish a federal assistance program providing states, local governments, and tribes with objective technical information and analysis about how proposed data centers might affect their communities. Within 180 days of enactment, the Department of Energy would need to develop a publicly accessible toolkit written in plain language for local officials, including model questions to ask developers, explanations of technical terms like megawatts and power usage effectiveness, and case studies from other communities. The bill also authorizes the Department to conduct independent analyses of data center proposals at a community's request, evaluating the reasonableness of developer claims regarding electricity demand, water use, infrastructure needs, economic impacts, and cooling technologies. The legislation would not restrict data center development, mandate specific regulations, or create financial incentives for projects; instead it aims to level the informational playing field between communities and industry by providing governments with federal technical expertise to understand project implications. The bill is currently in the early stages of the legislative process, having been introduced in the Senate and referred to the Committee on Energy and Natural Resources in September 2026. If enacted, it could significantly influence how communities evaluate data center proposals by giving them access to federal technical resources and standardized frameworks for assessing impacts on electricity grids, water supplies, infrastructure, and local economies.

The No Secrets for Data Centers Act of 2026 would void and make unenforceable predispute nondisclosure agreements (NDAs) related to data center construction and operations, specifically those involving public officials or public funds, land, or incentives. The bill would also prohibit data center operators from receiving any public incentives, such as tax breaks, grants, or bonds, if those incentives are conditioned on agreements that restrict or penalize disclosure of information about the data center project. The legislation applies only to new legal claims filed after the act's enactment and includes narrow carve-outs allowing confidential filings with utility commissions for non-incentive purposes and permitting states to enforce stronger transparency protections under their own laws. The bill affects data center developers and operators who seek government support for projects in the United States, potentially forcing greater public disclosure of project details, financial arrangements, and operational information that companies might otherwise keep confidential. Currently, the bill has been referred to three House committees: the Judiciary Committee, the Energy and Commerce Committee, and the Ways and Means Committee, with the Speaker to determine the timeline for committee consideration. The legislation represents a significant shift toward transparency in data center development, particularly for projects receiving public funding or support, and could substantially affect how companies negotiate incentive deals with state and local governments.

The Energy Cost Fairness and Reliability Act of 2026 would amend federal power law to require the Federal Energy Regulatory Commission to establish new interconnection rules specifically governing large load facilities, primarily data centers, that connect to the nation's electrical transmission system. Under the bill, data centers would be classified as "curtailable," meaning they would be required to reduce or shift their electricity consumption when requested by utilities or transmission providers to maintain grid reliability, manage congestion, or meet other operational needs. The legislation responds to Congressional concerns that rapid growth in data center development and AI computing infrastructure is straining the electrical grid, driving up electricity costs for residential consumers, and threatening grid stability and national security. The bill identifies electricity price increases in various regions as a direct consequence of infrastructure upgrades needed to serve large data center loads and frames the new regulatory requirements as necessary to balance technological innovation with long-term energy sustainability. Currently, the bill is in the early stages of the legislative process, having been referred in September 2026 to both the Committee on Energy and Commerce and the Committee on Science, Space, and Technology, where the specific provisions will be reviewed according to each committee's jurisdiction. The bill's trajectory will depend on whether committees advance it to the full House for consideration and whether it can build sufficient support given the competing interests of the technology industry, utilities, energy regulators, and consumer advocates.

The Ratepayer Protection Act would amend federal utility law to establish a new standard requiring data centers with peak electricity demand of 100 megawatts or more to pay the full incremental cost of any power generation, transmission, or distribution infrastructure upgrades needed to serve their facilities. The bill would also require data centers to provide financial assurances or upfront contributions to cover these upgrade costs before utilities can proceed with the necessary infrastructure work, shifting the financial burden entirely away from other ratepayers. This federal standard would apply across all states, though individual states that have already implemented comparable requirements would be exempt from the new timeline for compliance. The measure significantly affects data center development by increasing upfront capital requirements and financial risk for companies seeking to build large facilities, potentially making projects more expensive and less attractive. The bill's forward progress stalled in September 2026 when the Senate withdrew its motion to proceed to consideration, indicating it did not advance to a floor vote and its prospects for passage remain uncertain. For industry stakeholders and communities where data centers are proposed, this legislation represents a major shift in how infrastructure costs are allocated between large computing facilities and the broader electricity consumer base.

The Reverse Big Ugly Tax Breaks for Data Centers Act would eliminate federal tax incentives currently available to large data center operators by removing them from eligibility for bonus depreciation and qualified opportunity zone tax benefits. The bill targets data centers with a power capacity exceeding 50 megawatts that are used for data storage, processing, and transport services, as well as artificial intelligence development and operations. Bonus depreciation allows businesses to deduct the full cost of certain assets in the year they are placed in service rather than spreading deductions over time, and qualified opportunity zone status provides tax advantages for investments in economically distressed areas; removing data centers from both programs would increase their federal tax liability. The legislation, introduced by a bipartisan group of House members on September 16, 2026, is currently referred to the Committee on Ways and Means and reflects growing concern among some policymakers about the tax incentives supporting rapid data center expansion. For the data center industry and communities considering hosting facilities, this bill represents a potential shift in the federal tax environment that could affect investment decisions and project economics. The bill's passage would apply to data center property placed in service after enactment, making its trajectory through the tax-focused Ways and Means Committee a significant indicator of congressional sentiment toward data center tax policy.

The Public Lands Accountability Act would establish new environmental and workforce requirements for hyperscale data centers seeking to develop on federally managed public lands. The bill requires that all data center permits, leases, and authorizations by the Bureau of Land Management undergo full environmental impact statements under the National Environmental Policy Act, eliminating the ability to use categorical exclusions that normally streamline approvals for routine projects. Additionally, environmental reviews must include detailed analysis of water consumption for both electricity generation and cooling systems over a ten-year period, as well as assessment of cumulative effects on regional water supplies and drought resilience. The legislation also mandates that data center applicants submit workforce plans detailing job creation, the percentage of jobs expected to go to state residents, prevailing wage commitments, and permanent employment numbers, alongside a minimum 45-day public comment period and at least one public hearing in affected communities. The bill was introduced in September 2026 and is currently under review by both the Committee on Natural Resources and the Committee on Agriculture, with no timeline yet set for further action. For the data center industry, this legislation would substantially lengthen permitting timelines and increase compliance costs for projects on public lands, potentially steering development toward private property or other jurisdictions.

The No Tax Breaks for Data Centers Act would amend the federal tax code to explicitly exclude data centers from qualification as "opportunity zone businesses" under the Internal Revenue Code. Currently, data center investments in designated opportunity zones (economically distressed areas designated for targeted investment incentives) can benefit from significant federal tax breaks, including capital gains deferrals and exclusions. This bill would eliminate that tax advantage by inserting language that disqualifies any business classified as a data center from receiving these benefits, regardless of where it locates. The change would apply to any data center investments made after the bill's enactment, potentially affecting major technology companies and investment firms planning data center expansion in economically struggling communities. The legislation currently stands in the Senate Committee on Finance after being read twice on September 16, 2026, meaning it has not yet been scheduled for committee markup or floor debate. For data center developers and investors, passage would make opportunity zones less attractive locations for facility construction, likely shifting investment toward areas offering competing state and local incentives or toward regions outside the United States entirely.

The Data Center Fairness Fee Act of 2026 would establish a federal electricity consumption charge on data centers under the Clean Air Act, requiring the Environmental Protection Agency to collect $0.01 per kilowatt-hour from data center operators beginning in 2027. Starting in 2028, facilities consuming electricity with above-average carbon intensity would face an additional $0.05 per kilogram of CO2 equivalent emissions charge, creating financial incentives for operators to source cleaner power or face escalating costs. The bill grants the EPA significant authority to set monitoring and reporting requirements for calculating greenhouse gas emissions associated with data center electricity consumption, including rules for accounting on-site renewable generation and power purchase agreements, with a provision that unverifiable data would default to the highest carbon intensity rate found among US power generators. The legislation directly impacts the operational economics of data center development and expansion, potentially making new facilities in regions with carbon-intensive power grids substantially more expensive to operate. Currently, the bill has been referred to the House Committee on Energy and Commerce as of September 2026 and remains in the early stages of the legislative process. The bill reflects a policy approach linking data center growth to environmental and energy costs, which could significantly reshape where and how the industry develops facilities across the United States.

The Responsible Data Center Siting Act of 2026 would direct the Secretary of Energy to develop best practices and guidance for where data centers should be located across the United States. In creating this guidance, the Secretary would be required to evaluate seven major categories of impact: effects on the electrical grid and transmission infrastructure, water consumption and availability, environmental quality including air and water, effects on local communities such as noise and visual impacts, national security considerations, workforce development opportunities, and local economic effects including tax implications. The bill would require the Department of Energy to publish these best practices within one year of enactment and to review and update them at least every two years thereafter, making all guidance publicly available online. The legislation does not impose any binding requirements, penalties, or restrictions on data center companies or developers, nor does it provide tax incentives or subsidies for compliant siting. This approach makes the bill advisory in nature, offering a comprehensive federal framework for considering multiple stakeholder concerns without mandating specific outcomes. As of early September 2026, the bill has been referred to the House Committee on Energy and Commerce and awaits further consideration.

The Data Center Fair Share Act would amend federal utility law to require electric utilities to charge large energy consumers, including data centers using 100 megawatts or more of peak power, the full incremental cost of any grid infrastructure upgrades needed to serve them. Currently, these costs are typically spread across all ratepayers, meaning residential and smaller commercial customers subsidize the grid improvements that benefit large industrial users. Under this bill, data center operators would instead bear the complete expense of generation, transmission, and distribution upgrades directly, whether through upfront construction contributions or through special rates assigned to the large-load customer class. The legislation also appears to include enforcement mechanisms involving highway funding withholding for states that do not adopt these standards, though the full text of that provision is not shown in the excerpt provided. The bill is currently in the early stages of the legislative process, having been referred to two House committees in September 2026, where it faces consideration by both the Committee on Energy and Commerce and the Committee on Transportation and Infrastructure. For data center developers and operators, this bill could significantly increase the costs and complexity of establishing new facilities, particularly in regions with aging or constrained power infrastructure.

H.R. 10169, introduced by Representative Miller of Illinois in August 2026, would prohibit all federal agencies from providing financial assistance to data center construction, expansion, or substantial rehabilitation projects located on prime farmland and certain other protected farmland. The bill defines "federal financial benefit" broadly to include not only direct federal financial assistance but also tax credits, tax deductions, accelerated depreciation allowances, transferable tax benefits, and any other financial incentives provided under federal law. The restrictions would apply to any such projects that begin after the bill's enactment, using the farmland classification standards established under the Farmland Protection Policy Act. For the data center industry, this legislation would effectively eliminate a significant portion of federal incentives that currently support facility development in agricultural regions, potentially shifting projects away from rural areas with prime farmland toward urban or previously developed locations. The bill is currently in the early stages of the legislative process, having been referred to the House Committee on Energy and Commerce, where its prospects for advancement will depend on committee deliberation and broader congressional appetite for limiting data center development on agricultural land. The measure reflects growing concern among policymakers about the conversion of productive farmland to industrial uses at a time when agricultural land preservation is increasingly viewed as important for food security and rural economies.

The Ratepayer Bill of Rights Act of 2026 would require large data centers to publicly disclose their electricity and water consumption, infrastructure costs, rate impacts, and any public financial assistance they receive before beginning operations. The bill applies to data centers or groups of data centers with peak electricity demand of at least 50 megawatts or water withdrawal of at least 100,000 gallons per day, and it creates eight specific ratepayer rights including protections against cost-shifting to households and small businesses, independent assessments of water and electricity reliability before service commitments are finalized, and mandatory public notice and meetings at least 60 days before project approval. Data center operators would be required to pay all project-driven costs, post financial security, sign binding cost-recovery agreements, and fund conservation measures, with no ability to pass these expenses to existing ratepayers through rate increases or surcharges. The legislation also includes protections for rural water systems and aquifers, requires disclosure of on-site power generation and emissions, and prohibits confidentiality agreements from blocking public access to information covered by the bill. Currently in its early stage, the bill was referred to both the Committee on Energy and Commerce and the Committee on Education and Workforce on August 24, 2026, where further consideration will determine its path forward. The bill represents a significant potential shift in how data center projects are governed at the federal level, placing substantial transparency and financial burden requirements on the industry that could slow or complicate project development in affected regions.

The No Data Center NDAs Act would prohibit Members of Congress from signing nondisclosure agreements (NDAs) that restrict their access to information about data center planning and development. Specifically, the bill would prevent Congress members from being bound by NDAs when seeking information about data center investments, location planning, construction designs, or resource consumption from state or local governments or private entities. The legislation also bars the use of federal funds to implement or enforce such NDAs, effectively invalidating confidentiality agreements that would otherwise keep congressional representatives from accessing or discussing data center projects. The bill affects the relationship between Congress and data center developers or planners by requiring transparency about major facility projects that Members of Congress inquire into, which could increase public oversight and disclosure of data center operations in communities where they are planned. This matters for data center development because it removes one mechanism by which companies or local governments could limit congressional scrutiny or knowledge-sharing about large infrastructure projects that may have significant environmental, economic, or resource implications. The bill was introduced on August 20, 2026, and is currently referred to the House Committee on House Administration, where it awaits further consideration.

The Protecting Local Control of Data Centers Act would prohibit federal agencies from overriding or bypassing state and local land-use, zoning, siting, and permitting decisions for data centers built on non-federal land. The bill also bars the federal government from conditioning the receipt of federal funds to data centers on a requirement that state or local governments give up or limit their regulatory authority over such projects. This legislation directly affects data center developers seeking federal support or permits, as well as state and local governments that wish to maintain control over where data centers can be sited within their jurisdictions. The bill matters significantly for data center development because it codifies local authority at a time when some federal agencies have sought streamlined permitting processes or preemption powers to accelerate data center construction for artificial intelligence and other infrastructure priorities. Currently, the bill has been referred to the House Committee on Energy and Commerce as of August 2026, where it will undergo committee review before any potential floor consideration. The measure represents a significant assertion of federalism principles that would limit the federal government's ability to leverage funding or regulatory authority to facilitate data center projects over local objections.

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 non-binding resolution expressing the House's sense that communities affected by artificial intelligence data center development should have extensive rights to local control and transparency, including the ability to ban facilities near residential areas, reject proposed projects through community processes, and prevent state preemption of local regulations. The resolution calls for a "Data Center Bill of Rights" that would grant communities authority to impose construction setbacks, adopt statewide development pauses, demand clean energy use with strict pollution limits, require independent impact assessments before approval, and mandate enforceable community benefit agreements covering affordable housing, infrastructure upgrades, and workforce training. The bill responds to concerns documented in its preamble, including non-disclosure practices that obscure data center ownership and costs, projected water consumption of up to 32 billion gallons annually by 2028 in water-stressed regions, and potential public health impacts from air pollution and noise despite relatively modest permanent job creation. The resolution affects data center developers and operators seeking to build or expand facilities nationwide, as well as state and local governments currently balancing economic development incentives against community and environmental concerns. Currently, the bill has been referred to the House Committee on Energy and Commerce and the Committee on the Judiciary for consideration, and as a non-binding resolution it would express congressional sentiment rather than establish binding law, though passage could signal legislative intent to pursue more formal regulatory measures in the future.

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 annual surveys requesting data center operators across the United States to voluntarily report their energy and water consumption over the preceding year. The survey results, along with an interactive map showing facility-level data and identifying which data centers did not respond, would be published on the National Telecommunications and Information Administration website within 180 days of each survey, and the agency would submit a congressional report with recommendations on data center regulation and transparency. The bill invites input from utilities, labor organizations, state regulators, and consumer advocacy groups on the survey results, and requires coordination among the Commerce Department, Environmental Protection Agency, Department of Energy, and other relevant federal agencies. Because participation in the survey is voluntary and the legislation imposes no direct restrictions, taxes, or operational requirements on data center development, it represents an information-gathering and transparency initiative rather than a regulatory mandate. The bill was introduced in July 2026 by representatives Scholten, Subramanyam, and Grijalva and is currently referred to the House Committee on Energy and Commerce, where it awaits committee review and potential floor consideration. The measure's primary significance lies in its potential to create the first comprehensive national dataset on data center resource consumption, which could inform future policy decisions regarding the environmental footprint of the growing data center industry.

The Defending Our Energy and Water Act would amend federal law to require that new data centers operated by the federal government incorporate water resource protection requirements and use the most water-efficient cooling systems available. Specifically, the bill directs the Administrator of the Office of Electronic Government to revise minimum requirements for federal data centers within 180 days to include protections for water resources, and it amends defense authorization law to require federal data centers to identify and integrate water efficiency technologies to minimize operational impacts on water supplies and enhance resilience. The legislation affects federal data center development and operations, particularly those under the Department of Defense, by establishing new compliance standards that could increase construction and operational costs. The bill was introduced on July 30, 2026, and is currently under review by both the Committee on Oversight and Government Reform and the Committee on Armed Services, with each committee examining provisions within its jurisdiction. Water efficiency requirements for data centers matter for federal development because data centers consume significant quantities of water for cooling systems, and this bill seeks to address environmental and resource management concerns in regions where federal facilities operate. The bill's trajectory will depend on committee deliberations and support from both committees, though its dual referral suggests recognition that water and energy resource management for federal facilities involves both civilian and defense considerations.

The GRID Savings Act of 2026 would amend the Federal Power Act to give the Federal Energy Regulatory Commission (FERC) explicit authority over the interconnection procedures for large electricity loads connecting to the power transmission system. The bill defines a "covered large load" as any new or expanded nonresidential facility, including data centers, requiring at least 150 megawatts of peak electric demand at a single interconnection point, and establishes a standardized regulatory framework for how such facilities connect to the grid. The excerpt focuses on technical definitions of key terms such as interconnection facilities, network upgrades, and direct assignment facilities, which will govern how costs and responsibilities are allocated between large load customers and utilities. For data center developers, the bill matters because it would create uniform federal standards for grid interconnection rather than leaving the process to inconsistent state and regional approaches, potentially streamlining development timelines but also clarifying what costs data centers must bear for transmission system upgrades. The bill's title references "guarding ratepayers from increased demand-costs," suggesting legislative concern about whether the general public pays for grid infrastructure to support large industrial loads, though the excerpt does not yet specify the actual cost allocation mechanisms. Currently, the bill has been read twice in the Senate and referred to the Committee on Energy and Natural Resources, meaning substantive debate and amendment remain ahead before any final language is adopted.

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 eliminate a significant federal tax benefit for artificial intelligence data centers while requiring operators to disclose detailed information about their electricity and water consumption. Specifically, the bill removes AI data centers from the bonus depreciation provision of the Internal Revenue Code, a tax deduction that currently allows businesses to recover the cost of qualifying property more quickly, thereby reducing their overall tax liability. The legislation defines an AI data center as a facility where at least 20 percent of operations involve developing or operating artificial intelligence, though the tax penalty can be avoided if a data center achieves LEED Green Building certification at the Platinum or Gold level. The bill also mandates disclosure of resource use data to the Environmental Protection Agency, affected local governments, and communities served by the same utilities as the facility, imposing new compliance and reporting obligations on operators. As of its latest action in July 2026, the bill has been read twice and referred to the Senate Committee on Finance, where it awaits further consideration. For the data center industry, this legislation represents a potential dampening effect on AI facility development investments in the United States, particularly for operators unwilling or unable to meet stringent environmental certification standards, while environmental advocates and communities may view it as a necessary accountability measure.

The No AI Data Centers on Federal Lands Act, introduced in July 2026 by Representatives Tlaib, McGovern, Grijalva, Ramirez, Pocan, and Watson Coleman, would establish a comprehensive prohibition on the construction and operation of artificial intelligence data centers on all federally owned or managed land across the United States. 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 associated infrastructure such as transmission lines, power substations, natural gas plants, and water cooling systems needed to support them. If enacted, the legislation would require federal agencies to cease operations and order removal of any existing AI data centers and related infrastructure within 30 days of passage, with site remediation carried out according to environmental cleanup standards. The bill currently has a high likelihood of restriction given that it explicitly bars development of a major industrial sector on roughly 28 percent of U.S. land, which would significantly reshape where data center operators can build large-scale AI computing facilities in the country. The measure is now pending before the House Committee on Natural Resources following its referral in late July 2026. The bill's prospects depend on broader congressional sentiment regarding AI infrastructure development, federal land use, and the balance between industrial expansion and land conservation priorities.

The Protecting Ratepayers Act would require all data centers with a power demand of 5 megawatts or more to operate entirely independently from public electricity grids and municipal water systems, with a compliance deadline of 180 days after enactment for both existing and newly built facilities. This mandate would apply to any private company that owns, operates, or maintains a data center, as well as those planning to build one within the next five years, forcing affected operators to generate all power through on-site facilities or captive power plants and source all water from independent reservoirs or alternative supplies. The bill's stated purpose, reflected in its title, is to protect utility ratepayers by preventing data centers from drawing on public infrastructure, though industry experts argue the requirement would substantially increase operational costs and technical complexity for data center operators while potentially limiting future development in the sector. The legislation was introduced by Representative Donalds on July 20, 2026, and is currently pending review in the House Committee on Energy and Commerce, where it will undergo scrutiny from members with varying interests in technology infrastructure, energy policy, and consumer protection. The bill's impact would be significant for data center development across the United States, as major technology companies and cloud service providers currently rely on grid connections for efficiency and cost effectiveness, making the off-grid requirement a major operational restructuring. The measure's trajectory remains uncertain, as it faces potential opposition from the technology industry while possibly attracting support from lawmakers concerned about strain on local utilities and rising consumer energy costs.

The Ratepayer Protection Act would amend federal utility regulation to require large data centers to pay the full cost of electricity infrastructure upgrades needed to serve them, rather than spreading these costs across all ratepayers. The bill defines large-load customers as non-residential facilities with peak electric demand of 100 megawatts or more that primarily operate data centers, and would require utilities to recover all generation, transmission, and distribution upgrade costs from these facilities even if the data center later terminates service. Before proceeding with infrastructure upgrades, utilities would be required to obtain financial assurances or contributions from data centers to cover these costs upfront. The legislation is currently in the early stages of the congressional process, having been introduced in July 2026 and referred to the Committee on Energy and Natural Resources where it has been read twice. State regulatory authorities and utilities would have one year to begin considering the standard and two years to complete their review and make determinations on implementation. For the data center industry, passage could significantly increase the upfront capital costs and financial liability associated with locating facilities in new regions, potentially slowing expansion plans or shifting development to areas with existing infrastructure.

The FAIR Data Act would amend federal utility regulation to prohibit investor-owned electric utilities from passing data center infrastructure costs on to residential and small business customers. Specifically, the bill bars utilities from recovering expenses related to data centers with peak electricity demand exceeding 75 megawatts, including costs for grid upgrades needed to serve those facilities, by charging these costs to residential or small business ratepayers. The legislation applies to state-regulated investor-owned utilities and requires state regulatory authorities to consider and implement this standard within specified timeframes, with some exceptions for states that have already adopted comparable rules. For the data center industry, this represents a significant cost shift, as operators would need to bear the full expense of grid infrastructure upgrades themselves rather than having those costs distributed across utility customer bases. The bill's impact on data center development could be substantial, potentially making facility location decisions less attractive in states that enforce the rule, as operators would face higher direct infrastructure expenses. Currently referred to the House Committee on Energy and Commerce, the bill faces uncertain passage given the competing interests between residential consumer protection and the data center industry's infrastructure needs.

The Protecting Communities from Data Center Impacts Act of 2026 would direct the Environmental Protection Agency to commission the National Academies of Sciences, Engineering, and Medicine to conduct a comprehensive assessment of how data centers affect the environment and public health. The assessment would examine six specific impact areas: noise pollution, air pollution, water consumption, water supply, carbon emissions, and waste including electronic waste. Following the assessment, the National Academies would develop recommendations aimed at reducing these impacts and must submit their findings and recommendations to Congress within 180 days of the bill's enactment. The legislation creates no new regulations, restrictions, or incentives affecting data center operations or development; instead, it is a fact-finding and advisory measure designed to establish a scientific baseline for understanding data center impacts. Currently, the bill has been referred to the House Committee on Energy and Commerce, where it remains in the early stages of the legislative process. The bill's passage would likely influence future policy decisions about data center regulation but would not, by itself, change how data centers operate or where they can be built.

The Artificial Intelligence Data Center Moratorium Act would prohibit the 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 targets the infrastructure that powers AI development and deployment by halting facility expansion during a period of regulatory uncertainty. The bill's findings cite warnings from prominent technology leaders and AI researchers, including Elon Musk, Dario Amodei, Demis Hassabis, and Geoffrey Hinton, who have raised concerns about job displacement, surveillance implications, and existential risks from unchecked AI advancement. The proposed moratorium would significantly impact major technology companies and cloud service providers that rely on data center construction to expand AI computational capacity, potentially slowing AI model training and deployment across the industry. Currently, the bill is under consideration by both the Committee on Energy and Commerce and the Committee on Foreign Affairs, with the Speaker to determine the duration of review for provisions within each committee's jurisdiction. Given the broad scope of the moratorium and its implications for technology sector operations, the bill's passage would depend on evolving congressional sentiment regarding AI regulation and safety concerns versus economic and competitive pressures favoring continued data center development.

The Power and Water for Families Act of 2026 is a federal bill that would establish new cost-allocation rules for large electrical load customers, particularly data centers and artificial intelligence computing facilities. Under the legislation, data center operators would be required to bear the full incremental costs of power generation, transmission, and distribution infrastructure upgrades needed to serve their facilities, rather than having these costs distributed among all ratepayers. The bill also encourages investment in water recycling systems for data centers to reduce freshwater consumption from aquifers and rivers. The legislation frames these requirements as necessary to protect existing utility customers from cost increases while still enabling responsible data center development that maintains American competitiveness in artificial intelligence. Currently, the bill has been referred to both the House Committee on Ways and Means and the Committee on Energy and Commerce for consideration, with the specific timeline for review to be determined by the Speaker. The bill's passage would likely affect how data centers are financed and developed across the country by shifting infrastructure investment burdens from general ratepayers to the data center operators themselves.

The Data Infrastructure Energy Measurement and Standards Act directs the National Institute of Standards and Technology (NIST) to develop standardized best practices and methodologies for measuring energy and water consumption in data centers, including the power demands of artificial intelligence model training and inference operations. The legislation requires NIST to conduct research on measurement accuracy, identify gaps in data collection and availability, and work with the Department of Energy to create shared metrics and data mechanisms that would improve forecasting of energy and water demand across the industry. The bill affects data center operators, energy utilities, researchers, and policymakers by establishing a common framework for how data center efficiency and resource use are measured and reported, which is particularly important as AI workloads and data center expansion continue to grow. The measure passed committee with strong bipartisan support on a 34-1 vote in its amended form, indicating likely approval in the House and suggesting this foundational standards-setting approach has broad backing. The legislation does not impose restrictions on data center development or create specific efficiency mandates, but rather provides the measurement infrastructure and transparency that policymakers and utilities need to make informed decisions about future energy planning and regulation. This bill matters for data center development because standardized measurement practices will enable better understanding of the sector's actual energy footprint and support more accurate forecasting of grid demand, which are prerequisites for balanced policy decisions about data center siting and expansion.

The POWER Up Act would amend the Federal Power Act to establish clear Federal Energy Regulatory Commission (FERC) jurisdiction over the direct interconnection of large load facilities, defined as those with peak electricity demand of 100 megawatts or greater, to the interstate electric transmission system. The bill applies specifically to facilities or groups of facilities under common ownership at single or contiguous sites, and the FERC would be permitted to adjust this threshold if needed to ensure grid reliability and fair transmission service. Within 18 months of enactment, the FERC would be required to issue standardized procedures and agreements for interconnecting these large load facilities, including those that combine both load and generation at a single connection point. This centralized federal permitting process is directly relevant to data center development, as large data centers typically require 100+ megawatts of power and would benefit from streamlined, uniform interconnection procedures rather than navigating fragmented state and local requirements. The bill explicitly preserves state and local authority over facility siting, construction permitting, retail electric rates, and local distribution systems, meaning states retain significant control despite the federal jurisdiction over interstate transmission connections. Currently in its early stages, the bill was introduced on June 17, 2026, read twice, and referred to the Senate Committee on Energy and Natural Resources, where it would undergo further review and potential revision before any floor consideration.

The Local Control Protection Act would significantly restrict data center development by strengthening local government authority over zoning decisions and conditioning federal tax incentives on compliance with community benefit agreements. The bill prohibits federal courts from hearing challenges to local zoning denials for data centers of 20 megawatts or more, and it bars federal agencies from issuing permits to developers who sue to overturn local zoning rejections, effectively preventing developers from appealing adverse local decisions through the courts. To qualify for federal tax credits, data center developers would be required to negotiate legally binding community benefit agreements with local governments that address local tax contributions, infrastructure improvements such as road and water systems, environmental monitoring, and implementation of workforce utilization plans prioritizing local hiring and partnerships with apprenticeship and vocational programs. The bill applies to individual data centers and clusters of facilities under common ownership with a combined power demand of 20 megawatts or higher, covering most large-scale data center projects. The legislation is currently in the early stages of the congressional process, having been referred to both the House Committee on Ways and Means and the Committee on the Judiciary, with the timeline for further consideration to be determined by the Speaker. The bill represents a substantial shift in the balance between federal development authority and local land use control, with potential significant implications for the speed and cost of future data center construction across the country.

The Artificial Intelligence Environmental Impacts Act of 2026 would direct the Environmental Protection Agency to conduct a comprehensive study on the environmental effects of AI data centers and their supporting energy infrastructure, while also requiring the National Institute of Standards and Technology to establish a consortium focused on these impacts and tasking the EPA with developing a standardized reporting system for data center environmental data. Rather than imposing new restrictions or regulations on data center construction or operation, the bill is limited to information-gathering and coordination activities designed to build a factual foundation for understanding how rapid AI expansion affects energy consumption, water usage, air and water quality, electronic waste generation, and electricity prices across different communities. The bill's findings emphasize that data center energy demand has tripled over the past decade and is expected to double or triple again by 2028, with projections that hyperscale facilities could consume between 16 and 33 billion gallons of water annually by 2028, while also noting that certain communities including low-income and rural areas face disproportionate environmental and economic risks from this growth. Currently, the bill has been read twice and referred to the Senate Committee on Environment and Public Works as of June 9, 2026, where it will undergo further consideration before any floor vote. The legislation reflects congressional interest in understanding AI's environmental footprint but takes no immediate regulatory action, making it unlikely to directly affect ongoing data center projects while potentially informing future policy decisions if the bill advances and these study findings are later used to support stronger measures.

The Artificial Intelligence Environmental Impacts Act of 2026 would direct the Environmental Protection Agency to conduct a comprehensive study on the environmental effects of AI data centers and their associated energy infrastructure, while also requiring the National Institute of Standards and Technology to establish a consortium focused on these same environmental impacts. Additionally, the bill mandates that the EPA develop a standardized reporting system for tracking and disclosing the environmental impacts of artificial intelligence operations. The legislation addresses growing congressional concern about rapid increases in data center energy demand, which the Department of Energy projects may double or triple by 2028, along with associated challenges including water consumption projected to reach 16 to 33 billion gallons annually, air and water pollution, rising electricity costs for consumers, and electronic waste. The bill affects data center operators, equipment manufacturers, and communities where AI infrastructure is located, particularly low-income and minority communities that may experience disproportionate environmental and economic impacts. Currently, the bill has been referred to two House committees for consideration: the Committee on Science, Space, and Technology and the Committee on Energy and Commerce, with no substantive restrictions or incentives included that would directly limit or promote data center development. The bill represents an initial information-gathering and transparency approach to addressing AI's environmental footprint rather than regulatory intervention or permitting requirements.

The NEW HORIZON Act would require the Department of Defense to establish an operational pilot program testing commercially available orbital data center services and space-based cloud computing capabilities for national security missions. Under the program, which would be managed by the Defense Innovation Unit within one year of enactment, the DoD would evaluate how in-space data processing could reduce latency, enhance resilience, and improve military operations in contested environments where ground-based infrastructure may be vulnerable. The legislation explicitly encourages competitive participation from diverse nontraditional defense contractors and commercial space providers, effectively creating federal procurement demand for orbital data center operators and technology developers. The bill addresses a practical military concern: the growing volume of data generated by space-based sensors requires faster processing, and moving some computation to orbit rather than relying solely on terrestrial infrastructure could improve mission effectiveness and security. Currently, the bill has been read twice in the Senate and referred to the Committee on Armed Services, where it would need to advance before any further action. For the commercial data center and space technology sectors, passage would represent significant validation and potential market opportunity through federal procurement and partnership programs.

The POWER Act would require the Secretary of Energy, in consultation with the Environmental Protection Agency, to submit detailed reports to Congress on energy and water consumption by data centers covered under federal permitting streamlining initiatives. Beginning within two years of enactment and annually thereafter, these reports would track water usage from public water systems, the number of data centers generating their own electricity, electricity consumer status, and infrastructure connection costs to the bulk power system. The bill specifically targets data centers that qualify as projects under Executive Order 14318, which accelerated federal permitting for data center development, though it excludes facilities owned or operated by federal defense agencies. The legislation does not impose restrictions on data center development, add new permitting requirements, establish taxes or fees, or create regulatory barriers, instead establishing a transparency and information-gathering mechanism that reflects congressional concern about resource impacts raised in the bill's findings regarding water and agricultural land use. Currently, the bill is in the House Committee on Energy and Commerce following its introduction in May 2026. The measure represents a middle-ground approach to data center oversight that prioritizes congressional visibility into the sector's resource consumption without directly constraining industry expansion.

The Energy Cost Fairness and Reliability Act of 2026 would amend the Federal Power Act to require the Federal Energy Regulatory Commission to establish new regulations governing how large load facilities, particularly data centers, interconnect with the nation's electricity transmission system. The bill is motivated by Congressional concern that rapid growth in data center demand is straining grid reliability and driving up electricity costs for residential consumers in affected regions, while also creating infrastructure challenges that threaten national energy security and economic competitiveness. The legislation would mandate that data centers meet new "demand flexibility" requirements, meaning they must be capable of reducing, shifting, or modulating their electricity consumption in response to grid needs, through methods such as on-site energy storage deployment or voluntary operational reductions during periods of grid stress. The bill would also establish "curtailment obligations" requiring large load facilities to reduce their power draw when transmission providers request it for reliability, congestion management, or other operational reasons. Currently, the bill has been read twice in the Senate and referred to the Committee on Energy and Natural Resources, where it remains in the early stages of consideration. The regulations that would result from this legislation could significantly impact data center siting decisions and operating costs in the United States, potentially slowing data center development in regions with constrained transmission capacity while encouraging colocation with existing generation facilities or greater investment in on-site energy resources.

The Data Infrastructure Risk Reduction Act would require the Secretary of Homeland Security, working through the Cybersecurity and Infrastructure Security Agency and potentially the Department of Defense, to develop a comprehensive federal strategy for protecting data centers from cyberattacks and safeguarding surrounding communities within 180 days of enactment. The bill directs the Secretary to identify which data centers qualify as critical infrastructure, evaluate the security of power and water supply systems connected to these facilities (with particular attention to above-ground transmission lines and substations), and assess risks posed by data centers located near residential areas. The strategy must include recommendations for both defending data centers against external breaches and protecting nearby communities, though the bill itself does not impose direct restrictions or mandates on data center operators or developers. This legislation affects major technology companies, data center operators, community stakeholders in areas with existing or planned facilities, and federal agencies responsible for infrastructure security. The bill is currently neutral in its impact on data center development, as it establishes only a study and planning requirement rather than incentivizing or restricting industry growth. The measure was referred to the Subcommittee on Cybersecurity and Infrastructure Protection following its introduction in May 2026, indicating it remains in early legislative stages with uncertain prospects for passage.

The AI Data Center Site Selection Transparency Act of 2026 would require developers of artificial intelligence-focused data centers to publicly disclose their project plans, locations, and estimated environmental impacts at least 180 days before they take significant steps to begin construction or operation. Companies would be required to notify local elected officials and the general public through multiple channels including press releases, social media, direct mail, physical signage, and materials in multiple languages, while also restricting their ability to use non-disclosure agreements with government entities or regarding public resources. The bill defines AI-focused data centers broadly to include any facility specifically designed or modified to support AI model training, deployment, or operations, covering structures that house specialized computing hardware or require significant electrical, cooling, or water resources for AI workloads. Enforcement would be handled by the Federal Trade Commission, which would treat violations as unfair or deceptive practices under existing FTC authority with associated civil penalties. The bill currently stands at an early procedural stage, having been referred to the House Committee on Energy and Commerce in April 2026, where it faces consideration by lawmakers balancing concerns about local community impacts and environmental accountability against industry concerns about project timelines and competitive disadvantages. The legislation reflects growing scrutiny of large-scale data center development, particularly regarding its effects on local water supplies, electricity grids, and community planning processes.

The Power for the People Act of 2026 seeks to shift the financial burden of data center development away from general electricity consumers and onto data center operators themselves. The bill would direct the Federal Energy Regulatory Commission to require grid operators to establish separate interconnection queues and rate classes specifically for data centers, allowing operators to delay or deny data center connections to the grid when necessary and requiring data centers to pay directly for grid upgrades rather than having those costs distributed across all ratepayers. Proponents argue this approach is needed because data center electricity consumption is projected to double by 2028 and account for 6.7 to 12 percent of total U.S. energy demand, which they contend is driving up electricity costs for households and businesses that would otherwise subsidize this growth. The bill addresses concerns about grid reliability and interstate commerce impacts while also seeking to minimize climate and environmental consequences and encourage job creation in the energy sector. Currently in the early legislative stage, the bill has been referred to the House Committee on Energy and Commerce as of April 2026 and was introduced by a bipartisan group led by Representative Tonko. Data center operators and energy-intensive industries would likely face increased costs and potential interconnection delays under this proposal, while residential and business ratepayers would potentially benefit from insulation against rising electricity prices tied to data center expansion.

The Data Center Water and Energy Transparency Act of 2026, introduced by Senator Durbin on March 25, 2026, would require 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 and the Secretaries of Energy and 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 usage, information about power generation methods, efficiency metrics, and five-year projections for energy and water use reductions. States would have authority to set reporting formats and could assess fees on data center operators to cover the costs of administering the reporting program. The bill currently sits in the Senate Committee on Energy and Natural Resources after being read twice and does not impose operational restrictions, special taxes on data center activities, or development prohibitions, making it a transparency and information-gathering measure rather than a regulatory constraint. For data center developers and operators, the legislation would create ongoing administrative and compliance obligations but would not directly affect their ability to build or operate facilities. This neutral approach to data center oversight suggests the bill is likely to generate discussion focused on balancing industry transparency concerns with the practical needs of states and federal agencies to monitor resource consumption in an expanding sector.

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 signed by major technology companies including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI on March 4, 2026, to negotiate separate electricity rate structures with utilities and state governments for their data centers rather than spreading infrastructure costs across all ratepayers. The resolution is prompted by concerns that data center electricity consumption is growing rapidly, projected to increase from over 4 percent of national consumption in 2024 to up to 12 percent by 2028, and that without special arrangements, residential customers and small businesses would subsidize the power infrastructure for some of the world's largest companies. The pledge commits signatory companies to pay for generation and delivery infrastructure regardless of whether they use it, creating financial incentives for them to make backup power resources available to grid operators during electricity shortages, which the resolution argues protects both ratepayers and grid reliability. While the resolution contains no binding requirements or enforcement mechanisms, it directs federal agencies like the Department of Energy and the Federal Energy Regulatory Commission to support implementation of the pledge and encourages other technology firms to adopt similar commitments voluntarily. The measure was referred to the Senate Committee on Energy and Natural Resources on March 25, 2026, and its passage would represent an endorsement of a market-based approach to managing data center growth without imposing new regulatory burdens on the technology industry.

The Protect American AI Act of 2026 would substantially limit legal challenges to data center permits and environmental reviews by preventing courts from invalidating permits even when environmental reviews violate federal law, instead requiring agencies to fix violations while permits remain in effect. The bill applies to data centers and their supporting infrastructure and restricts lawsuits under major environmental statutes including the National Environmental Policy Act, Clean Air Act, Clean Water Act, and Endangered Species Act. A critical provision imposes a strict 90-day filing deadline for legal challenges to data center permits, measured from when permits are published as final in the Federal Register, which is significantly shorter than typical timeframes for environmental litigation. The bill also centralizes judicial review exclusively in circuit courts of appeals rather than district courts and mandates expedited review procedures, further accelerating permit-related cases through the courts. Currently, the legislation has been referred to both the House Judiciary Committee and the House Energy and Commerce Committee for consideration of provisions within their respective jurisdictions, where it awaits further action. For the data center industry, this bill would represent a major streamlining of the permitting process by reducing litigation risk and acceleration timelines, while environmental advocates and affected communities would face substantially compressed timelines and weakened legal remedies for challenging projects they believe harm water resources, air quality, wildlife, or local ecosystems.

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, working 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 multiple environmental and economic dimensions. The study would investigate data center impacts on water consumption, energy use, air quality from backup generators, soil and land use, electricity rates, wastewater systems, job creation and displacement, local tax revenues, residential property values, and public health risks including pollution exposure and heat island effects. The bill was introduced in March 2026 by a bipartisan group of House members and is currently referred to the House Committee on Energy and Commerce, where it would need to advance before moving forward. The legislation reflects growing concerns about data center siting in vulnerable communities, citing specific examples like a large facility built near a predominantly Black neighborhood in Memphis, Tennessee, and frames the study around environmental justice principles rather than development benefits. The findings mandated by the bill focus on documenting burdens and negative impacts rather than examining both costs and benefits, signaling legislative skepticism about the industry's effects on disadvantaged populations. The study deadline of 18 months after enactment would produce federal-level data on data center impacts that could inform future regulatory decisions, community benefit agreements, or siting restrictions in this jurisdiction and others.

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 Power for the People Act of 2026 is a Senate bill that seeks to protect residential and business electricity consumers from bearing the costs of infrastructure upgrades needed to accommodate rapid growth in data center energy demand. The legislation directs the Federal Energy Regulatory Commission to require grid operators to establish separate "load queues" for data center interconnection requests and to create data center-specific utility rate classes, ensuring that data center operators pay for system upgrades and infrastructure investments rather than passing these costs to other ratepayers. The bill is premised on findings that data center electricity consumption is projected to roughly double by 2028, rising from current levels to between 6.7 and 12 percent of total U.S. energy demand, and that current policy structures cause households and businesses to subsidize this expansion through higher energy bills. Currently, the bill has been introduced by Senator Van Hollen and seven cosponsors and has been read twice and referred to the Senate Committee on Energy and Natural Resources, where it awaits committee consideration. The legislation reflects growing concern among lawmakers that data center development, while economically important, should not impose unfunded costs on the broader electricity system and its consumers. If enacted, the bill would represent a significant shift in how data centers interconnect to the grid and how their infrastructure costs are allocated.

The SHIELD Act would amend federal utility law to classify large load facilities (those exceeding 75 megawatts in peak demand) as a distinct class of electric consumers and impose new cost-recovery and operational requirements on utilities serving them. Under the bill, utilities would be required to fully recover from large load facilities all costs associated with grid upgrades needed to serve them, including infrastructure investments that may become stranded if the facility reduces operations or closes. The legislation would create a prioritization system where utilities can only expedite service to new large load facilities if the operators agree to deploy renewable energy generation or power purchase agreements covering 100 percent of the facility's electricity demand, along with demand-reduction technologies such as onsite storage or energy efficiency measures. Data centers represent a major category of large load facilities, making this bill directly relevant to the industry's expansion plans and grid connection costs. The bill was introduced in January 2026 with support from a bipartisan group of House members and has been referred to the House Committee on Energy and Commerce, where state utility regulators and utilities would be required to formally consider and rule on these standards within two years of enactment. Given the bill's explicit targeting of cost recovery mechanisms and its conditional prioritization framework, it would significantly increase the financial and regulatory burden on data center development projects seeking grid access in the United States.

The Data Center Transparency Act would require the Environmental Protection Agency and the Energy Information Administration to publish regular public reports detailing the environmental and energy impacts of data centers operating in the United States. The EPA would issue quarterly reports tracking water consumption by data centers, water reuse practices, effects on local water systems, and greenhouse gas emissions, with particular attention to impacts on overburdened communities. The Energy Information Administration would issue semi-annual reports measuring total energy consumption by data centers at the state level, changes in consumption patterns, the number of new data centers coming online, and potential effects on household electricity bills and costs. The bill does not impose new restrictions, permitting requirements, taxes, or operational limits on data centers themselves; rather, it establishes a framework for systematic data collection and public transparency. Currently referred to the House Committee on Energy and Commerce as of January 2026, the bill represents a procedural approach to addressing concerns about data center impacts without directly regulating industry operations. For stakeholders including data center operators, regulators, and communities affected by data center development, this bill would establish baseline information that could inform future policy decisions while creating no immediate compliance burdens beyond data reporting obligations.

The Preventing Rate Inflation in Consumer Energy Act (PRICE Act), introduced in January 2026 by Representatives Menendez and Casar, would require all U.S. data centers consuming at least 50 megawatts daily to generate 100 percent of their electricity consumption from on-site or owned sources. Starting January 1, 2035, at least 75 percent of that self-generated electricity must come from clean energy sources such as solar, wind, battery storage, green hydrogen, hydropower, or geothermal facilities, with the requirement increasing to 100 percent clean energy by January 1, 2040. Data centers that fail to comply face daily civil penalties of up to $100,000 until violations are corrected, with the Secretary of Energy required to establish an administrative enforcement process within 30 days of enactment. The bill would significantly impact the data center industry by imposing substantial capital expenditure requirements for on-site renewable energy infrastructure and storage capacity, potentially affecting the geographic location and cost of new data center development. Currently, the bill has been referred to the House Committee on Energy and Commerce and remains in the early legislative stage. Industry stakeholders view the measure as highly restrictive, though proponents argue it addresses concerns about data centers' growing electricity consumption and its effects on power grid reliability and consumer energy rates.

The RESTRICT Act, introduced in December 2025 and currently referred to the House Committee on Foreign Affairs, would establish new export controls on advanced semiconductor chips specifically designed for data centers. The bill would prohibit U.S. companies from selling these high-performance chips to countries designated as "countries of concern," which include China, Macau, and Hong Kong, while requiring licenses for sales to other countries in a broader "covered country" category. The legislation carves out an exemption allowing U.S. persons and companies meeting certain security standards to transfer these chips to approved recipients in non-concern countries without a license, provided the chips remain under U.S. ownership and control. The bill would update its own definitions of what qualifies as an "advanced integrated circuit" every 24 months to keep pace with rapid technological change, with the Commerce Department coordinating these updates with Congress. While this measure targets foreign trade policy rather than domestic data center operations or development, it could indirectly affect how U.S. technology companies structure their international operations and supply chains for AI and data center infrastructure. The bill's trajectory will depend on committee deliberations and broader foreign policy considerations regarding semiconductor exports and U.S. technological competition with China.

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 of enactment to examine rate structures and strategies that could insulate residential and small commercial customers from cost increases tied to large electricity consumers, particularly artificial intelligence data centers. The conference would bring together stakeholders including utilities, state regulators, ratepayer advocates, data center operators, and federal energy officials to discuss how grid costs associated with massive new loads can be distributed more fairly. Within 180 days after the conference concludes, FERC would submit a report to Congress containing recommendations and best practices emerging from these discussions. The bill addresses a growing concern among policymakers and consumers that the rapid expansion of energy-intensive AI data centers in various regions could drive up electricity rates for ordinary households and small businesses. The legislation was unanimously approved for reporting out of committee with a 44-0 vote, indicating broad support across party lines for examining this issue, though the bill itself imposes no direct mandates or restrictions on data center development but rather requires study and recommendations. If enacted, this bill would likely influence future federal regulatory guidance on rate design without immediately constraining data center growth or imposing new costs on the industry.

The Clean Cloud Act of 2025 would amend the Clean Air Act to establish new federal oversight of data centers and cryptocurrency mining facilities, requiring them to collect and report detailed electricity consumption data to the Environmental Protection Agency and the Energy Information Administration. Facilities covered by the bill are those with more than 100 kilowatts of installed computing power, a threshold that would capture most commercial data centers and cryptomining operations across the United States. The legislation mandates that covered facilities provide annual reports detailing their location, total electricity consumption, power sources, and whether they operate as data centers or cryptomining facilities, with utilities also required to submit complementary information about their service to these operations. The bill responds to congressional findings that data centers currently consume approximately 4 percent of U.S. electricity and are projected to reach 12 percent by 2028, while cryptocurrency mining has grown rapidly and often relies on fossil fuel power plants being brought back online. The bill was introduced in November 2025 by Representatives Cohen and seven co-sponsors and has been referred to the House Committee on Energy and Commerce, where it faces an uncertain path given partisan divisions over environmental regulation of technology infrastructure. For industry stakeholders, the measure signals potential future emissions standards and increased regulatory compliance costs, though the current excerpt does not reveal whether the bill includes specific emissions caps or penalties beyond data collection requirements.

The Securing Reliable Power for Advanced Technologies Act would amend the Defense Production Act of 1950 to designate large artificial intelligence data center projects as priority national defense projects, potentially accelerating their federal permitting process. Specifically, the bill targets AI data centers with a total electrical load of at least 50 megawatts, along with associated power generation facilities and fuel supply infrastructure needed to support them, making these projects eligible for streamlined federal authorization. Under the bill's framework, the President could designate qualifying projects and require federal agencies to conduct their environmental and permitting reviews concurrently rather than sequentially, while adhering to a consolidated schedule that would establish interim milestones for agency decisions. The bill affects major technology companies pursuing large-scale AI infrastructure development, federal agencies responsible for environmental review and permitting, and communities potentially hosting these facilities, since concurrent permitting could shorten approval timelines while potentially raising questions about review thoroughness. As of now, the bill has been referred to the House Committee on Financial Services and remains in early legislative stages, though its framing around national defense infrastructure and the congressional focus on AI competitiveness suggest it may advance in the current legislative session. For the data center industry, this legislation represents a significant policy shift that could materially reduce project development timelines by consolidating fragmented federal permitting processes.

The Unleashing Low-Cost Rural AI Act would authorize the Department of Energy to commission a comprehensive study on how artificial intelligence and data center development affect U.S. energy resources, with particular focus on rural and remote areas. The study would examine whether existing energy infrastructure requires upgrades to support data centers, assess the feasibility of powering these facilities with renewable and alternative energy sources, and analyze impacts on energy costs, reliability, water usage, and land use. Notably, the legislation also directs researchers to investigate whether federal permitting processes under the National Environmental Policy Act could be streamlined to expedite data center and related energy infrastructure projects. The bill affects energy developers, technology companies seeking to build data centers in rural regions, and utilities operating in frontier areas, while also touching broader policy conversations about environmental review timelines. Currently in the House Committee on Science, Space, and Technology following its September 2025 introduction, the bill takes a research-focused approach rather than implementing direct incentives or restrictions, giving Congress time to gather data before making more substantive policy decisions about rural data center development. The 180-day deadline for submitting findings means recommendations could influence future legislative action or permitting practices within the year.

Senate Bill 265 would modify Alabama's tax incentive program for data processing centers by imposing new restrictions and tax collection requirements on the industry beginning January 1, 2027. The bill would cap the maximum tax abatement period for data processing centers at 20 years, down from potentially longer periods under current law, while simultaneously requiring certain large data processing centers to pay state sales and use taxes on their purchases, a requirement they are currently exempt from. These changes represent a significant shift in how the state treats data center investments, as the new tax collection obligation substantially increases the operating costs for qualifying facilities, potentially offsetting the value of the extended abatement authority and the sunset date extension also included in the bill. The legislation would affect any existing or future data processing centers that meet the state's definition, which includes facilities with at least 20 new jobs paying average annual compensation of at least $40,000 and engaged in activities such as data hosting, processing, storage, or related infrastructure services. The bill is currently in the Economic Development and Tourism Committee following its introduction in early February 2026, and its progression will likely depend on how industry stakeholders and economic development officials view the balance between the abatement cap and the new tax obligations. For Alabama's data center sector, the bill represents a more restrictive policy environment that could influence future investment decisions and competitiveness compared to neighboring states.

Alabama's Senate Bill 270, which has been enacted, establishes new requirements for the Public Service Commission's review of electricity contracts between utilities and large data centers requiring at least 150 megawatts of power. Under the legislation, the PSC can only approve such contracts as being in the public interest if they meet two specific conditions: the contract must ensure the data center pays all incremental costs attributable to serving it, and the contract must demonstrate positive benefits for other utility customers. The bill defines incremental costs as the additional expenses utilities incur for generation, transmission, distribution, and sale of electricity to the data center, including fuel and taxes, and it directs the PSC to consider factors such as whether the contract lowers costs for other customers, improves system efficiency, or promotes local economic growth. This legislation effectively places significant cost burdens on data centers seeking favorable utility rates in Alabama by requiring them to absorb all direct costs of service expansion rather than potentially sharing some costs across the broader customer base. For data center developers, the bill creates a higher bar for negotiating competitive electricity contracts, potentially affecting Alabama's ability to attract large data center projects compared to other states with more favorable utility terms. The bill takes effect on October 1, 2026.

Alabama's HB 399 modifies the state's tax incentive program for data processing centers by implementing new restrictions and tax obligations effective January 1, 2027. The legislation caps the maximum tax abatement period for data processing centers at 20 years, down from the previous unlimited duration, while simultaneously requiring large data processing centers to begin paying state sales and use taxes on their purchases starting in 2027, a significant new tax burden that previously was exempt. The bill maintains existing abatements for property and construction-related taxes but eliminates the sales tax exemption that had made data centers particularly attractive to investors seeking to minimize operational costs. The measure affects any data processing facility meeting the state's definition of at least 20 jobs with average compensation of $40,000 or more, which encompasses a range of operations from server hosting to cloud infrastructure providers. The bill's enactment represents a policy shift away from aggressive tax incentives toward revenue generation, reflecting a recalibration of how Alabama balances economic development recruitment against state tax collection needs. This change may influence future data center location decisions, as companies will need to factor in ongoing sales tax obligations when evaluating Alabama compared to other jurisdictions with more generous incentive structures.

Senate Bill 250 would require Alaska electric and gas utilities to assign all data center-specific infrastructure and variable costs directly to the data center customer rather than spreading those costs across their general ratepayer base. Under the bill, utilities must enter into specific contracts with data center customers that are reviewed and approved by the Alaska Public Utilities Commission, with detailed accounting of costs for infrastructure and services used primarily or exclusively by the data center. The legislation also restricts how transmission infrastructure built for data centers can be classified within the broader utility system, preventing such infrastructure from being treated as part of the general backbone transmission system unless it is later determined to serve other customers as well. The bill affects any data center seeking utility service in Alaska and has implications for how utilities structure rates and capital investments related to data center development in the state. Currently, the bill is in the House committee process and has been held pending further action. The measure represents a significant shift in cost allocation that would protect other utility ratepayers from bearing expenses associated with data center operations while placing those costs entirely on the data center operator.

House Concurrent Resolution 28 is a procedural measure that suspends four specific rules of the Alaska State Legislature to allow for the consideration of Senate Bill 250, which addresses data centers and utility service provisions for data center operations. The resolution does not itself enact any substantive policy changes, but rather removes procedural barriers that would normally apply during the legislative process, specifically suspending rules that govern bill title modifications. The actual impact on Alaska's data center industry and utility regulations will depend entirely on the content and provisions of Senate Bill 250, which this resolution merely facilitates. The measure has been read for the first time in the House, indicating it is at an early stage of the legislative process. Understanding the implications of this rule suspension requires examining the companion Senate Bill 250 to determine what data center policies or utility service changes are being proposed. For residents, industry professionals, and policymakers tracking data center development in Alaska, the key focus should remain on SB 250 itself, as that bill will contain the substantive provisions affecting data center operations and utility infrastructure in the state.

House Bill 2456 would amend Arizona county zoning law to prohibit counties from restricting or regulating small modular reactors when they are constructed alongside large industrial energy users such as data centers. Under the bill's terms, a small modular reactor would be permitted in a county zoning district if it is colocated with a large industrial energy user that has already obtained necessary zoning approvals, provided that the reactor operator conducts public notice and holds at least one public comment session in the affected county. The legislation would create a significant zoning exemption for this emerging nuclear technology, effectively removing local land-use barriers that might otherwise prevent data centers and other industrial facilities from deploying on-site small modular reactors for power generation. For Arizona's growing data center industry, which faces substantial electricity demands, the bill would streamline the path to integrating advanced nuclear generation capacity without navigating county-level zoning restrictions. The bill failed in the legislature, meaning it did not advance to become law, though the specific reasons for its failure are not provided in the available information. Supporters of such legislation generally view small modular reactors colocated with data centers as a clean energy solution that reduces grid dependence, while opponents may have raised concerns about nuclear safety, siting authority, or environmental review processes.

This Arkansas bill would eliminate a regulatory exemption that currently allows digital asset mining operations to operate without obtaining money transmitter licenses under state law. Specifically, the measure repeals a provision in the Arkansas Data Centers Act of 2023 that exempts persons engaged in home digital asset mining or operating digital asset mining businesses from being classified as "money transmitters" under the Uniform Money Services Act. If enacted, digital asset mining operations would be reclassified as money transmission activities, requiring them to obtain state licensure and comply with the full regulatory framework governing money services businesses, which typically involves financial reporting requirements, capital reserves, and compliance oversight. The bill includes a transition provision requiring existing mining operations to apply for licensure by September 1, 2026. This proposal matters for Arkansas's data center sector because it would significantly increase regulatory compliance costs and administrative burdens for cryptocurrency and digital asset mining businesses that currently operate under a lighter regulatory regime in the state. The bill died in House Committee at the conclusion of the 2026 fiscal session and did not advance to further consideration.

Arkansas Senate Resolution 10 would have repealed a regulatory exemption that currently allows digital asset mining operations to operate without obtaining money transmitter licenses under state law. The bill would eliminate the existing exemption in the Arkansas Data Centers Act of 2023 that shields home digital asset mining and digital asset mining businesses from regulation under the Uniform Money Services Act, instead subjecting these operations to the same licensing and compliance requirements as traditional money transmitters. Any digital asset mining operations already in operation would have been required to apply for licensure by September 1, 2026. The measure affects cryptocurrency and digital asset mining companies that have established operations in Arkansas, potentially increasing their regulatory costs and compliance burden. The bill died during the 2026 fiscal session sine die adjournment without passage, meaning it did not advance for a vote and effectively terminates its consideration unless reintroduced in a future legislative session. For Arkansas's data center industry, this failed legislation suggests that efforts to tighten regulations on digital asset mining remain contentious, while the current exemption framework continues to provide competitive advantages that may influence the state's ability to attract or retain such operations.

The full text of this California bill was not available for this summary, which is based solely on the bill title and its most recent legislative action. The bill addresses three interconnected issues affecting data centers in California: labor standards, electricity rates, and data center operations or development. Based on the title alone, the legislation likely impacts data center employers, workers in the data center industry, electricity consumers or ratepayers, and possibly local communities where data centers operate. This bill matters for California's data center sector because it potentially regulates either labor practices, utility costs, or both, which are significant operational concerns for the industry and could affect the economic viability of data center projects in the state. The legislation is currently in committee following a May 14 hearing and remains under submission, meaning it has not yet advanced to further legislative stages. To understand the bill's specific provisions, potential impacts, and policy direction, the full text will need to be reviewed once it becomes available.

The full text of this bill was not available for this summary. Based on the title and legislative action, California Assembly Bill 436 (2026) requires data centers to disclose their water usage, likely through mandatory reporting to state regulators or the public. The law affects data center operators and owners throughout California who will need to implement new tracking and reporting systems to comply with the disclosure requirements. This matters for data center development in California because water use has become an increasingly significant environmental concern as the state manages chronic drought conditions and competition for limited water resources among agricultural, municipal, and industrial users. The bill reflects growing legislative interest in scrutinizing data center operations, which consume substantial quantities of water for cooling purposes, particularly in regions already facing water stress. The measure has been chaptered by the Secretary of State and is now law in California as of 2026, making compliance mandatory for affected facilities.

The full text of this bill was not available for review, so this summary is based solely on the bill's title and its enactment status. Assembly Bill 437, chaptered in 2026, addresses the intersection of water resources and data center operations in California, suggesting it establishes or modifies rules governing how data centers use, manage, or report on water consumption. While the title alone does not reveal whether the bill restricts data center water use, incentivizes water-efficient practices, streamlines permitting, or creates new reporting requirements, its enactment indicates California has taken legislative action on this resource management issue. The measure likely affects data center operators, water districts, and state environmental agencies responsible for overseeing both water supplies and industrial development. This legislation matters for California's data center sector because water availability and regulation significantly influence operational costs and site selection, particularly in a state facing periodic drought conditions and competing demands on limited water resources. The bill is now law, having been signed and chaptered by the Secretary of State in 2026, and is in effect unless otherwise specified in its provisions.

The full text of this bill was not available for review, so this summary is based solely on its title and legislative history. Senate Bill 440, chaptered in 2026, addresses rate structures applicable to data centers in California, indicating the legislation establishes or modifies how utilities or other service providers charge data center facilities for their services. Based on the bill's focus on rate regulation rather than incentives or operational restrictions, it likely affects both data center operators and the utility companies or municipalities that serve them, potentially impacting the cost structure for data center operations throughout the state. Rate structures can significantly influence the economic viability of data center projects and their competitive positioning, making this legislation relevant to industry investment and expansion decisions. The bill's passage into law suggests the legislature determined that existing rate structures needed clarification, adjustment, or standardization to address concerns from stakeholders in either the data center industry or utilities sector. With the bill now chaptered and in effect, data center operators and service providers should monitor implementing regulations to understand the specific rate changes or requirements that apply to their facilities.

The full text of this bill was not available for review, so this summary is based on the bill's title and legislative history. Chapter 439, Statutes of 2026 appears to streamline environmental review procedures under California's Environmental Quality Act (CEQA) for data center projects and geothermal power plant facilities, likely by creating expedited or alternative review pathways that reduce permitting timelines and associated costs. The legislation would primarily affect data center developers and operators seeking to build or expand facilities in California, as well as renewable energy companies focused on geothermal generation. This streamlining matters significantly for California's data center sector because CEQA environmental reviews can substantially delay projects and increase development expenses, and faster permitting could make the state more competitive for attracting data center investment. The bill may also reflect California's interest in pairing data center growth with renewable energy development, particularly geothermal power, to support clean energy goals. The measure was chaptered by the Secretary of State in 2026, meaning it has completed the legislative process and is now law.

The full text of this bill was not available for review, so this summary is based on the bill's title and legislative history. Based on its title, Chapter 434 appears to establish or modify reporting requirements for data centers operating in California, likely mandating that facilities disclose certain operational, environmental, or financial information to state agencies or the public. The bill's procedural focus on reporting suggests it does not directly restrict or incentivize data center development but rather increases transparency and data collection regarding the industry. This legislation would affect data center operators and owners in California, as well as state agencies responsible for collecting and potentially publishing the reported information. For the broader data center development landscape in California, such reporting requirements can inform policymakers and the public about facility impacts on resources like water and energy consumption, employment, or grid demands. The bill was chaptered by the Secretary of State in 2026, meaning it has completed the legislative process and is now law.

The full text of this bill was not available at the time of this summary. Based on its title and legislative history, California Chapter 435, Statutes of 2026 addresses the relationship between electricity and data centers in the state. The bill's specific provisions remain unknown without access to the full text, though the legislation likely affects either data center operators, electricity providers, state regulators, or some combination thereof. The bill's focus on electricity and data centers suggests it may address topics such as power consumption standards, grid impacts, energy efficiency requirements, permitting processes, or renewable energy obligations for the data center industry. Data center development and operations are matters of significant public interest in California due to concerns about energy demand, water usage, and environmental impacts, making any legislation in this area potentially consequential for the industry and communities where facilities are located. The bill has completed the legislative process and was signed into law on an unspecified date in 2026, making it current law in California.

House Bill 26-1246 would create a new category of "consumer-regulated electric utility" in Colorado that would allow data centers and other large nonresidential facilities to build and operate their own private electricity systems without oversight from the Colorado Public Utilities Commission. Under the bill, these consumer-regulated utilities would be exempt from most traditional utility regulations but would still need to comply with environmental, building, fire, and workplace safety codes, as well as right-of-way maintenance requirements if they construct facilities in public spaces. The legislation is specifically designed to streamline electricity access for new industrial and commercial developments by removing regulatory barriers and preventing such projects from shifting infrastructure costs or risks to existing utility ratepayers. Data center operators and other large nonresidential users would benefit from faster project approval and greater operational flexibility, though the exemption from PUC regulation would end if such a utility chooses to interconnect with the main electric grid. The bill's latest legislative action shows it was postponed indefinitely by the House Committee on Energy and Environment, suggesting it did not advance in the current legislative session and faces an uncertain path forward. This outcome indicates potential resistance to the proposal, possibly from concerns about reduced oversight or impacts on traditional utility regulation in Colorado.

House Bill 26-1030 would create a new Colorado Data Center Development Authority within the state's Office of Economic Development to oversee a data center incentive program designed to attract large-scale data center investments to the state. The centerpiece of the bill is a 100% exemption from Colorado state sales and use taxes on qualified data center infrastructure and equipment, available for an initial 20-year period with the possibility of a 10-year extension, contingent on operators meeting substantial eligibility requirements including a minimum $250 million investment commitment, job creation targets, compliance with prevailing wage and apprenticeship standards, and adherence to energy efficiency and water management benchmarks. To receive certification and access these tax benefits, data center operators must demonstrate coordination with local utilities regarding grid capacity and infrastructure needs, creating a formal mechanism for utilities to propose targeted resource acquisitions to the Public Utilities Commission to meet the demands of large new customers. The bill's nine-member authority would include representatives appointed by the governor, legislative leaders, and relevant stakeholder groups including energy experts, water resource specialists, workforce representatives, and data center industry professionals, reflecting an attempt to balance development interests with environmental and labor considerations. As of the most recent legislative action, the bill was postponed indefinitely by the House Committee on Energy and Environment, effectively halting its progress through the legislature. The bill's current status suggests significant legislative hurdles or concerns remain unresolved, though the postponement rather than outright rejection leaves open the possibility of reconsideration if these concerns can be addressed.

Colorado Senate Bill 26-102 would establish substantial operational and financial requirements for large-load data centers, defined as new facilities with peak loads exceeding 30 megawatts or existing facilities adding 30 megawatts or more in capacity. Beginning in 2031, data center operators would be required to match 100 percent of their electricity consumption with renewable energy on an hourly basis (or the highest technically and economically feasible percentage if the Public Utilities Commission determines 100 percent is not achievable), while also entering into 15-year utility contracts to cover infrastructure and resource costs. The bill would prohibit utilities from offering economic development rates to data centers, require operators to contribute to demand-side management programs and comply with water management standards, and mandate comprehensive reporting of electricity and water consumption to the state. Local governments would need to implement model codes for data center development by June 2027, and developers proposing projects in disproportionately impacted communities would be required to conduct third-party cumulative impacts analyses before proceeding. The Colorado Senate Committee on Transportation and Energy voted to postpone the bill indefinitely in the current legislative session, effectively blocking its advancement and indicating significant opposition to its regulatory approach.

The full text of this Delaware data center bill was not available for this summary. Based on its title and strong House passage, the legislation appears to modify Delaware's Title 9, Title 22, and Title 29 code sections to create a more favorable regulatory environment for data center projects, though the specific incentives, tax benefits, or procedural streamlining measures cannot be detailed without reviewing the complete text. The bill likely affects data center developers and operators, local municipalities with potential facility sites, and Delaware's broader economic development strategy. The amendments matter because data centers represent significant infrastructure investments that generate tax revenue and jobs, making regulatory clarity and supportive policies important competitive factors among states seeking such facilities. The bill passed the House with a decisive 37-3-1 vote on January 24, 2024, indicating broad legislative support and suggesting the proposed changes enjoy backing across party lines. The legislation now moves to the Delaware Senate for consideration.

The full text of this bill was not available for review, so this summary is based solely on the bill's title and legislative action. SB 353 would amend Delaware law to establish or modify a moratorium on data center development in the state, effectively restricting new data center construction or expansion during the period the moratorium is in effect. The bill would directly affect data center companies seeking to build or develop facilities in Delaware, as well as municipalities and property owners who might host such facilities. This legislation matters because Delaware has become an attractive location for data center investment due to its business-friendly policies, so a moratorium would represent a significant shift in the state's approach to this economic sector and could influence whether companies pursue data center projects elsewhere. The bill currently faces an uncertain path, as a motion to suspend Senate rules to expedite consideration of SB 353 failed on March 19, with only 6 senators voting in favor and 15 opposed, indicating limited support for advancing the measure at this time. Without access to the full bill text, the specific duration of the proposed moratorium, any exceptions it might contain, or the stated rationale for restricting data center development remain unclear.

Florida's SB 484, which became Chapter No. 2026-65, enacts comprehensive regulations affecting data center development across multiple sectors of state and local governance. The legislation prohibits state and local government agencies from entering into nondisclosure agreements that would restrict public disclosure of information about potential data center projects, with violations subject to civil fines of up to $1,000. The bill preserves local government authority over zoning and land development regulations for data centers and requires the Florida Public Service Commission to establish service standards ensuring that large data center customers bear their full costs of service without shifting expenses to other ratepayers, while also allowing utilities to curtail service to these customers when necessary. The legislation imposes strict new requirements for water permits to large-scale data centers, prohibiting permits unless applicants demonstrate compliance with specified environmental and sustainability standards, and mandating consideration of reclaimed water use where feasible. These combined measures, which have taken effect as law, represent significant constraints on data center expansion by reducing development confidentiality, limiting cost advantages, restricting water access, and preserving local government power to deny or limit data center projects through zoning decisions. The bill's regulatory framework signals Florida's intent to ensure that large-scale data center development bears its true infrastructure and environmental costs rather than benefiting from subsidies or streamlined approvals that might otherwise accelerate facility growth in the state.

Hawaii House Resolution 196 requests the state's Energy Office to establish a working group to study how large data centers might affect the state's electrical grid, costs to consumers, water supplies, and climate commitments. The resolution focuses specifically on data centers requiring five megawatts or more of electricity and reflects concerns that such facilities could impose costly infrastructure upgrades on Hawaii's isolated island power systems, potentially burdening existing ratepayers rather than the data center operators themselves. The working group would include representatives from state energy and business offices, the Public Utilities Commission, utilities, consumer advocacy groups, and environmental organizations, tasked with examining potential regulatory safeguards such as cost-sharing mechanisms, ratepayer protections, and renewable energy requirements. While Hawaii has not yet received proposals for major data center development, the resolution acknowledges that rapid national growth in artificial intelligence infrastructure makes future proposals likely and warrants proactive planning. The measure is purely advisory and creates no binding requirements or restrictions on data center development. As of its latest action, the resolution was reported favorably from the House Finance Committee and recommended for adoption, positioning it for likely passage without the regulatory teeth that some stakeholders might seek.

This concurrent resolution asks Hawaii's State Energy Office to establish a working group to study how large data centers could affect the state's power grid, electricity costs, water resources, and climate commitments. The working group would include representatives from state energy and economic development agencies, the Public Utilities Commission, electric utilities, environmental and consumer advocacy groups, and energy developers, with the goal of identifying potential regulatory frameworks and safeguards before any major data center proposals arrive in Hawaii. The resolution identifies specific policy areas for examination, such as mechanisms to ensure data center developers pay for necessary grid upgrades, protections for residential and small-business ratepayers, transparency requirements for energy and water consumption, and strategies to align data center operations with Hawaii's renewable energy goals. This study request reflects concerns shared by policymakers nationwide about whether existing ratepayers should subsidize infrastructure upgrades driven by large new commercial energy loads, particularly as data centers nationwide are projected to consume between 6.7 and 12 percent of total U.S. electricity by 2028. Hawaii's isolated island grids and constitutional commitment to protecting water resources make the state especially sensitive to these potential impacts, and proactive planning could position the state to manage any future data center development more effectively. The resolution was most recently referred to the Committee on Energy, Economic Development, and Exemptions and the Committee on Finance, indicating it is in the early stages of the legislative process.

Hawaii House Concurrent Resolution 206 requests the Hawaii State Energy Office to establish a working group to examine the potential impacts of large data centers on the state's electricity system, ratepayers, natural resources, and climate objectives. The resolution specifically targets data center facilities requiring five megawatts or more of instantaneous electricity demand and directs the working group to study regulatory safeguards and policy options, including mechanisms to ensure data center developers pay for required grid infrastructure upgrades and measures to protect residential and small business ratepayers from cost increases. The working group would include representatives from state energy and environmental agencies, the Public Utilities Commission, electric utilities, consumer advocacy organizations, and other stakeholders selected by the chair. The resolution has been adopted and transmitted to the House for consideration, though it creates no binding regulatory requirements or restrictions on data center development at this stage. This action reflects Hawaii policymakers' proactive concern that the national expansion of artificial intelligence infrastructure could eventually bring hyperscale data center proposals to the state's isolated island grids, which face unique constraints around electricity supply, water resources, and renewable energy targets. The study represents a preliminary step toward developing potential future policy frameworks rather than immediate regulation of the industry.

This Hawaii Senate resolution requests the State Energy Office to establish a working group to study how large data centers would affect the state's electric grid, utility ratepayers, water resources, and climate commitments. The working group would bring together state officials from energy, business development, land and natural resources, and utility regulation, along with representatives from utilities, consumer and environmental advocates, and energy developers. The resolution directs the group to examine potential regulatory safeguards and policy options, including mechanisms to ensure data center developers pay for required grid infrastructure upgrades, protections for residential and small business ratepayers, and requirements for transparency regarding electricity and water consumption. While Hawaii has not yet received proposals for hyperscale data centers, the resolution acknowledges that the rapid national expansion of artificial intelligence infrastructure makes such proposals likely in the future, particularly given Hawaii's isolated island electric grids and constitutional protections for water resources. The resolution itself creates no new regulations, restrictions, or requirements and serves as a fact-finding measure to prepare the state for potential future data center development. As of May 2026, certified copies of the resolution have been sent to relevant agencies, indicating it has completed the legislative process.

House Bill 897 amends Idaho's sales and property tax exemptions for data center equipment and facilities, substantially narrowing benefits that were previously available to the industry. The bill eliminates the sales tax exemption for new data center facilities (buildings and structural components) for any projects that commence construction on or after April 1, 2026, restricting future exemptions to eligible server equipment only, while projects beginning before that date retain access to both facility and equipment exemptions. The legislation also limits eligibility for the capital investment tax exemption by clarifying and potentially tightening the definition of qualifying business entities, requiring them to invest at least $250 million in aggregate within five years of construction commencement and create at least 30 new jobs within two years of operations. The bill affects data center developers and operators planning new facilities in Idaho, particularly those seeking to locate large-scale operations in the state, as it significantly reduces the financial incentives available to such projects going forward. This change matters for Idaho's competitive position in attracting data center investment, as neighboring states may maintain more generous tax incentives, potentially influencing where companies choose to build new facilities. The bill has been referred to the Revenue and Taxation Committee for a concurrence recommendation, indicating it has advanced through initial consideration and is progressing through the legislative process.

Idaho's House Bill 895, signed by the governor on April 2, 2026, restricts water use by data centers beginning construction after July 1, 2026, by limiting their cooling water sources exclusively to municipal, water district, or water and sewer district systems. The law adds new restrictions to Idaho's water code, effectively prohibiting data centers from drawing consumptive cooling water from other sources such as groundwater aquifers or surface water bodies. The legislature made explicit findings that data center water consumption conflicts with the public interest, contradicts state water conservation goals, and can negatively impact local economies in watersheds where water is sourced. These legislative findings are now required to be considered by Idaho's Department of Water Resources when evaluating new water appropriations or transfers for data center projects. The restriction took effect July 1, 2026, making it binding law for any data center planning construction after that date, which will substantially reshape how data center developers approach facility cooling in Idaho. The bill's designation as an emergency measure and its narrow focus on data centers indicate legislative concern about the industry's expanding water demands in a water-conscious region.

HB5755 would establish new procedural requirements for data center siting approvals in Illinois municipalities by mandating at least one public hearing before approval and creating a "back-door referendum" mechanism allowing 15 percent of local voters to trigger a public ballot measure on any data center application. The bill applies to facilities with a combined connected load of 5 megawatts or greater used for digital data storage, management, and processing, as well as to any qualifying Illinois data center as defined under state economic development law. Municipal authorities would be required to publish notice of applications and referendum procedures in local newspapers and on municipal websites, hold hearings within 60 days of receiving an application, and allow interested parties to present evidence and cross-examine witnesses, though municipalities could impose reasonable time limits on proceedings. If a petition signed by 15 percent of voters from the previous general election is filed within 60 days of notice, the municipal clerk must certify the question for submission at the next regularly scheduled election, where voters would decide whether the data center should be approved. The bill currently stands referred to the Rules Committee as of its introduction on May 5, 2026, and proponents of data center development have raised concerns that these requirements create substantial procedural barriers and give local populations direct veto power over projects that may have been approved through standard zoning processes.

SB4206 would grant Illinois counties and municipalities significant new authority to regulate data center development through local ordinances, establishing standards for facility size, height, design, and the number of facilities allowed in a geographic area. The bill imposes a mandatory 3-mile buffer zone around the corporate boundaries of any municipality, preventing data centers from being sited within that radius without prior written consent from the neighboring municipality, effectively expanding local control beyond traditional zoning jurisdictions. Both counties and municipalities could also establish restrictions on water withdrawal, require water reuse or conservation systems, mandate contamination safeguards, and impose noise mitigation requirements on data center operators. The legislation requires at least one public hearing at least 30 days before any siting decision, with notice published in local newspapers, creating additional procedural requirements for development approval. The bill is currently in the assignment stage of the legislative process as of its introduction on May 18, 2026, and if enacted, would substantially increase local oversight of data center projects statewide, potentially slowing development timelines and raising compliance costs for the industry. This represents a significant shift in regulatory authority from the state level to local governments, giving neighboring communities strong veto power over siting decisions.

SB3120 adds a water stewardship documentation requirement to Illinois's existing data center tax incentive program, which provides sales tax exemptions and income tax credits to qualifying facilities. Under this amendment, data centers seeking to qualify for these incentives must now submit details about their water management strategies, including documentation of whether they use closed-loop cooling systems or treated municipal wastewater, when they adopted these practices, and evidence of sustained implementation. The bill affects both new data centers and existing facilities seeking to expand, requiring them to demonstrate responsible water use practices as a condition of eligibility for state tax benefits. This change reflects growing policy attention to data centers' water consumption, as the facilities are known to require substantial cooling water resources, particularly in regions where water availability is a concern. The bill is currently in the Illinois Senate Committee on Assignments after receiving an amendment, indicating it remains in the early stages of the legislative process. For data center operators and developers, this represents an additional reporting and compliance requirement rather than a fundamental change to incentive eligibility thresholds, though it establishes water stewardship as a material consideration in the state's economic development calculus for the sector.

Senate Bill 3830 would subject Illinois data centers to new environmental monitoring and renewable energy requirements starting January 1, 2027. The legislation mandates that all data centers discharging water to treatment facilities must identify and monitor likely pollutants in their water discharge and maintain records of pollutant levels, with the state Environmental Protection Agency analyzing this data. Additionally, data centers must track and annually report their water consumption to the Department of Natural Resources, which would publish aggregated and anonymized usage data publicly. The bill also establishes a "data center self-direct program" allowing facilities to reduce renewable energy procurement charges by demonstrating contributions from new clean energy generation, though details on these cost reductions are limited in the excerpt. Violations of disclosure requirements carry penalties up to $10,000 per violation, and the bill directs state agencies to develop implementing rules. Currently pending in the Illinois Senate, the bill has been re-referred to committee assignments following a Senate Committee Amendment, indicating ongoing deliberation about its final form.

Senate Bill 3761 establishes new regulatory and reporting requirements for data centers operating in Illinois, effective January 1, 2027. The bill requires data center operators to submit detailed disclosure documents to the Illinois Commerce Commission at least 180 days before beginning construction on new facilities, and mandates that all operating data centers track and annually report their water consumption to the Department of Natural Resources, with aggregated data to be made publicly available. Data centers that fail to comply with these disclosure requirements face penalties of up to $10,000 per violation, with both the Commerce Commission and Department of Natural Resources tasked with developing implementing rules. The legislation also establishes a data center self-direct program allowing qualifying customers to receive reduced charges for renewable energy procurement based on their facility's contribution to clean energy generation. The bill was introduced on February 5, 2026, and is currently re-referred to committee assignments, meaning it has not yet advanced to a full floor vote or passed either chamber. These requirements represent a significant increase in regulatory oversight for the data center industry in Illinois, affecting facility siting, operational transparency, and environmental monitoring.

Illinois Senate Bill 2181 would require all data centers operating in the state to report their annual energy and water consumption to the Illinois Power Agency beginning January 1, 2026, with reports due by March 31 each year. The legislation, introduced in February 2025, mandates detailed reporting broken down by month and energy source, along with information about efficiency improvements undertaken during the reporting period. The bill also directs the Illinois Power Agency to conduct a comprehensive study within 12 months of enactment examining how data centers affect electricity demand, rate changes for different customer types, and the environment, with findings to be submitted to the General Assembly and Governor. Data centers that fail to comply with reporting requirements would face fines up to $10,000 per violation, with collected funds directed to the Energy Efficiency Trust Fund, while proprietary information would remain confidential though aggregated data would be made public. The bill is currently before the Illinois State Senate and has been re-referred to the Committee on Assignments following a committee amendment, indicating it remains in early legislative consideration. As a transparency and data-gathering measure rather than a direct tax or development restriction, this legislation represents a middle-ground approach that aims to establish a factual foundation for future policy decisions regarding data centers' resource impacts in Illinois.

SB4016, introduced in February 2026 by Senator Ram Villivalam and recently joined by Senator Karina Villa as a co-sponsor, would establish comprehensive new regulations governing hyperscale data centers across Illinois by amending multiple environmental and energy statutes. The bill requires data centers to undergo cumulative impact assessments, enter into community benefits agreements with affected neighborhoods, obtain Water Impact Permits subject to public hearings with five-year renewal cycles, comply with stringent energy codes, and pay annual fees based on peak demand to fund community intervenor compensation and public benefits programs. Operators would face mandatory quarterly reporting on water usage and annual reporting on both energy and water consumption to the Illinois Commerce Commission, while nondisclosure agreements that would shield information from the public would be prohibited. The legislation also expands renewable energy procurement requirements and creates a new automated solar permitting system for residential installations, with provisions allowing residents to sue municipalities that fail to comply. For data center development in Illinois, the bill represents a significant shift toward stricter environmental oversight and community engagement, substantially increasing both the regulatory complexity and operational costs associated with large-scale facility development. With a second co-sponsor recently added, the bill appears to be gaining support within the legislature, though its ultimate passage and implementation would depend on further legislative action and the governor's approval.

Senate Bill 4203, introduced by Sen. Sue Rezin in May 2026, would amend Illinois data center incentive law by requiring data center operators to enter into community benefit agreements with their host municipalities or counties as a condition of receiving and maintaining tax exemption certificates. Under the bill, operators would be obligated to make annual minimum payments to host communities equal to at least 10 percent of the property taxes that would otherwise be owed on the data center facility, with at least half of those payments directed toward property tax relief for residential homeowners in the community. The requirement applies to "qualifying" data centers that meet substantial thresholds including minimum capital investments of $250 million over five years, creation of at least 20 high-wage jobs, and achievement of carbon neutrality or green building certification within two years of operation. For the Illinois data center industry, this bill represents a significant modification to the existing tax incentive structure, reducing the net benefit of state and local tax exemptions by requiring direct financial contributions back to host communities. The bill has recently gained a co-sponsor in Sen. Erica Harriss and carries an anti-business sentiment classification due to the substantial ongoing financial obligations it would impose on data center operators seeking to benefit from Illinois's existing tax incentive programs. The measure's trajectory will likely depend on how the business community, municipalities seeking revenue, and environmental advocates weigh competing interests around economic development and local fiscal impact.

Senate Bill 3578, titled the "Data Center Construction by Foreign Adversaries Act," would prohibit foreign-owned companies from constructing data centers in Illinois unless they obtain joint certification from three state agencies: the Illinois Commerce Commission, the Illinois Power Agency, and the Department of Commerce and Economic Opportunity. The bill defines "foreign company" as any entity that is at least 51 percent owned by a foreign adversary or is headquartered in a country designated as a foreign adversary under federal regulations, referencing definitions in the Code of Federal Regulations. Before a foreign-owned entity could proceed with data center development, the three agencies would need to jointly study and certify that the facility's energy consumption would be self-generated and would not impact the power supply of regional transmission operators PJM or MISO. This regulatory requirement creates a significant approval barrier for foreign investment in Illinois's data center sector at a time when the state competes nationally for such facilities. The bill was introduced on February 5, 2026, by Senator Sue Rezin and recently gained co-sponsor support from Senator Darby A. Hills, suggesting growing backing for the measure among state legislators.

HB5513 would establish comprehensive new environmental, water, and energy regulations specifically targeting hyperscale data centers in Illinois by amending multiple state statutes including the Environmental Protection Act and Energy Efficient Building Act. The bill requires data centers to undergo cumulative impact assessments, enter into community benefits agreements with affected communities, obtain Water Impact Permits with mandatory public hearings and five-year renewals, comply with stringent energy codes, and submit quarterly reporting on water and energy usage to state regulators. Funding mechanisms include annual fees on data centers based on peak electricity demand that would support a Data Center Community Intervenor Compensation Fund and a Hyperscale Data Center Public Benefits and Affordability Fund, alongside provisions prohibiting nondisclosure agreements that might restrict public access to information about facility impacts. The bill also expands renewable energy procurement requirements and creates a new automated solar permitting system for residential installations across Illinois municipalities. As introduced on February 13, 2026, with more than a dozen co-sponsors including Rep. Robyn Gabel and Rep. Ann M. Williams, the addition of Rep. Suzanne M. Ness as a co-sponsor signals continued legislative support, though the cumulative regulatory burden and operational costs imposed on data center operators suggest this legislation would face significant industry opposition during the legislative process. For communities concerned about data center environmental impacts, particularly around water usage and cumulative industrial effects, this bill represents a major shift toward stricter local oversight and transparency protections.

The full text of this Illinois bill was not available at the time of this summary. Based on its title alone, the Data Center Energy Account appears to relate to how energy consumption or costs associated with data centers are tracked, allocated, or managed, though the bill's specific purpose cannot be determined without reviewing the actual legislative language. The bill was filed by Rep. Jay Hoffman and is currently with the Clerk, placing it in the early stages of the legislative process. Data center operators, energy utilities, and state energy regulators would likely be among those affected by this measure, depending on whether it creates new accounting requirements, establishes funding mechanisms, or modifies how data center energy usage is monitored. For Illinois, which has sought to attract data center investment as an economic development strategy, any legislation addressing data center energy has potential significance for the cost and feasibility of future projects in the state. Interested parties should monitor this bill's progress through committee and await publication of the full text to understand its actual provisions and implications.

Senate File 2498 would make existing Iowa sales and use tax exemptions for data centers, web search portal businesses, and nuclear electric generation facilities conditional upon annual contributions to higher education institutions governed by the state board of regents. Under the bill, data center and web search portal businesses that begin new construction or make additions on or after January 1, 2027, would be required to contribute at least five percent of the annual value of their tax exemption to support nuclear engineering programs at state universities before becoming eligible for the exemption. Facilities that fail to make these required contributions would lose their tax exemption status, be required to repay all exemptions claimed in the year of non-compliance, and face collection proceedings by the Department of Revenue. The bill essentially converts what are currently unconditional tax incentives designed to attract technology investment into conditional benefits tied to specific educational funding obligations. This change could significantly impact the financial calculus for data center operators considering Iowa expansion, potentially reducing the net value of tax benefits and affecting the state's competitiveness in attracting such facilities. The bill has advanced to committee approval and was renumbered as SF 2498, positioning it for further consideration in the legislative process.

Senate Bill 92 extends the expiration date for existing Kansas statutory provisions that allow electric utilities to deny parallel generation service to certain large load customers and exempt those customers from contributing to the utility's peak demand calculations. The bill amends K.S.A. 2025 Supp. 66-1,184, which establishes the framework for distributed energy systems and parallel generation contracts, by pushing back the sunset date on these exemptions without substantively changing the underlying rules. For large load customers such as data centers that generate their own power, this extension maintains the ability of utilities to deny parallel generation service, meaning data centers cannot necessarily feed excess power back into the grid and may face higher peak demand charges compared to other customer classes. The practical effect is that data centers and other large industrial facilities operating in Kansas will continue operating under the existing regulatory regime rather than gaining new rights to interconnect distributed generation or achieve demand charge reductions. As of April 3, 2026, the bill was enrolled and presented to the Governor, placing it in the final stage of the legislative process pending executive action. The extension is procedural in nature and does not create new incentives, subsidies, or competitive advantages for the data center industry in Kansas.

Senate Bill 81 would amend Kansas law governing economic development electric rates by imposing new restrictions on large industrial facilities, particularly data centers. Under the bill's provisions, any new facility with a peak electrical demand of 40 megawatts or above would be prohibited from accessing economic development rate discounts unless it either creates at least 200 full-time jobs or receives service under a specialized data center or large load tariff. This measure effectively targets large data centers that do not meet one of these two conditions, denying them cost-saving rate incentives that are otherwise available to other industrial customers in Kansas. The bill matters for data center development because electricity costs represent a major operational expense for these facilities, and losing access to discounted rates could make Kansas a less competitive location for data center investment compared to other states. The bill died in committee during the 2025 legislative session, meaning it did not advance to a vote and is no longer active in this legislative cycle, though similar proposals could be reintroduced in future sessions. The measure reflects concerns about ensuring that large, automated industrial facilities like data centers either contribute substantially to local employment or operate under specific regulatory frameworks as a condition of receiving publicly authorized rate benefits.

Senate Bill 531 would have prohibited the installation, construction, and operation of new large load data centers (those requiring 10 megawatts or more of electrical power) in any Kansas county that has had a drought emergency declared within the preceding three years. The bill would have required county commissioners to deny permits for such facilities during the three-year period following a drought emergency declaration and allowed counties to issue moratoria to enforce the restriction. The prohibition would not have applied to data centers already operating or authorized before July 1, 2026, and counties could still adopt more restrictive regulations under existing state law. This measure reflects growing concerns about water consumption by energy-intensive data center operations during periods of water scarcity, a significant issue in Kansas where drought emergencies are periodically declared. The bill would have directly limited economic development and technology infrastructure investment in drought-affected counties but ultimately died in the Senate Committee on Federal and State Affairs, meaning it did not advance to further legislative consideration.

Kansas House Bill 2664 would establish a "private energy campus" framework that exempts data centers and other industrial facilities from standard public utility regulations when they generate and use their own electricity on contiguous private property. Under the bill, private energy campuses could generate power on-site, sell electricity to tenants within their boundaries through negotiated agreements, and interconnect to the public grid without facing capacity limitations or parallel generation requirements that normally apply to other generators. The legislation aims to attract data center investment by reducing regulatory complexity and streamlining the process for securing reliable power, while preserving utility service territories and ensuring that any grid connections remain subject to approval by either the Kansas Corporation Commission or local utility governing bodies. The bill addresses what state policymakers characterize as growing demand for reliable power from data centers, hydrogen production, and advanced manufacturing facilities that conventional regulated utilities say they cannot fully meet. HB 2664 died in committee during the 2026 session and did not advance to a vote, meaning it did not become law and would need to be reintroduced in a future legislative session to be considered again.

Senate Bill 526 would have restricted Kansas's sales tax exemption for data center construction to only those projects built on land that was already zoned for industrial or manufacturing uses as of July 1, 2025. The bill would amend the state's data center tax incentive law by adding a location requirement that effectively limits where companies can qualify for the exemption, excluding projects on previously unzoned land or land zoned for other uses. This restriction would significantly narrow the geographic options available to data center developers seeking to take advantage of Kansas's tax incentive program, potentially making some projects economically unfeasible if they cannot access the exemption. The legislation matters because tax incentives are a key tool states use to attract data center investments, which bring infrastructure development, job creation, and long-term economic activity, so limiting eligibility could affect Kansas's competitiveness in recruiting such projects. The bill died in committee during the 2026 legislative session and therefore did not advance to a vote, meaning Kansas's current data center tax exemption rules remain unchanged and data centers can still locate on previously unzoned land and potentially qualify for the incentive.

Senate Bill 400 would have prohibited large data centers in Kansas (those with a monthly maximum electrical demand of 20 megawatts or more) from using open-loop cooling systems, which release water vapor directly into the atmosphere, and would have required them to use closed-loop cooling systems instead. The legislation defined "large load data centers" based on electrical demand thresholds and specified that closed-loop systems must operate as sealed systems with no contact between cooled or heated fluids and the ambient air. Enforcement would have been handled through civil injunctions sought by the attorney general or local prosecutors, with district courts empowered to grant remedies for violations. The bill matters for Kansas data center development because cooling system requirements can significantly affect facility design, operating costs, and capital expenditures, potentially influencing where companies choose to locate new facilities or expand existing ones. 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 industry stakeholders and water conservation advocates, the failed bill reflects the tension between efforts to reduce data center water consumption in water-stressed regions and concerns about regulatory burdens on facility development.

Louisiana House Bill 1206 would establish new permitting and reporting requirements for data centers that consume more than 100 million gallons of water annually, representing a significant regulatory shift for the data center industry in the state. Under the bill, data center operators would need to obtain permits from the state Department of Environmental Quality before construction or operation, submitting detailed information about projected water usage, sources, and quality requirements for departmental review. The department would be required to evaluate permit applications based on impacts to public health, safety, welfare, aquatic life, and vegetation, as well as the applicant's proposed water conservation measures such as recycling systems and closed-loop technologies, and could deny permits based on these environmental and public health factors. Additionally, all operating data centers meeting the water consumption threshold would be required to submit quarterly water usage reports documenting total water input, water sources, and performance metrics related to water efficiency. The bill also mandates that the department conduct public hearings in affected parishes before issuing any permits, giving local communities and officials an opportunity to weigh in on major data center projects. Currently, the bill has been referred to the Louisiana House Committee on Natural Resources and Environment following its initial reading, and its passage would represent one of the first state-level regulatory frameworks specifically addressing data center water consumption.

House Bill 293 authorizes the Maryland Longitudinal Data System Center to share student and workforce data with third-party data centers for multistate reporting and data matching purposes, provided those centers meet specified security and compliance requirements. The legislation requires the Center's Governing Board to enter into written data sharing agreements with external data centers and mandates that these third parties comply with federal privacy laws including the Family Educational Rights and Privacy Act, with data presented only in de-identified form. The bill affects educational institutions, workforce agencies, and external research platforms that work with Maryland student and employment data, while also repealing prior authority for the Center to unilaterally share data with the U.S. Census Bureau. This represents a procedural authorization that facilitates multistate data collaboration rather than creating incentives or restrictions on data center development itself, though it does establish new governance requirements for entities handling sensitive educational and workforce information. The bill was approved by the Governor and became law as Chapter 100, indicating completion of the legislative process. The measure is significant primarily for research and policy evaluation purposes, enabling Maryland to participate in interstate data initiatives while maintaining privacy protections.

Senate Bill 56 authorizes Maryland's Longitudinal Data System Center to share student and workforce data with third-party data centers for multistate research and reporting purposes, establishing formal governance procedures and compliance requirements for such data sharing arrangements. The bill requires the Center's Governing Board to enter into written data sharing agreements with external data centers and mandates that these third parties comply with data privacy and security standards, including requirements under the federal Family Educational Rights and Privacy Act and use of de-identified data. The legislation affects educational agencies, higher education institutions, workforce development programs, and research entities that may seek access to Maryland's longitudinal education and labor data through approved external computational platforms. While the bill does not create specific incentives or restrictions for data center development itself, it establishes the legal framework necessary for Maryland to participate in multistate data research collaborations through secure third-party platforms, potentially expanding research capabilities across state lines. The bill has already been approved by the Governor and enacted as Chapter 101, indicating it has completed the legislative process and is now in effect. The measure repeals previous authorization for sharing data with the U.S. Census Bureau under certain circumstances and replaces it with a broader framework for third-party data center arrangements, representing an evolution in how Maryland manages external access to its sensitive educational and workforce datasets.

House Bill 5786, introduced in Michigan in April 2026, would require that all construction contracts for enterprise data centers include mandatory labor provisions prioritizing local union workers and apprentices. Under the bill, contractors must follow a tiered hiring system that first seeks workers from local labor organizations in the county or prosperity region where the data center is being built, then expands to state-level unions, and finally to out-of-state unions only if workers are unavailable at higher tiers. Additionally, contractors must ensure that at least 10% of total labor hours on the project are performed by apprentices enrolled in registered apprenticeship programs, unless the Michigan Strategic Fund determines that apprentices are not reasonably available for specific job classifications. Contractors would be required to submit written requests to local labor organizations, wait at least three days for responses, maintain detailed documentation of their good-faith hiring efforts for three years, and submit sworn certifications and workforce reports to verify compliance with these requirements. For data center developers and construction companies, this legislation would substantially increase compliance costs and administrative burdens, as well as potentially raise labor costs in a competitive industry where speed and cost efficiency are critical factors. The bill is currently tied to two other related measures (HB 5785 and HB 5787) and remains in early stages following its electronic reproduction on April 14, 2026.

House Bill 5785 would extend and expand Michigan's use tax exemption for data center equipment, a significant financial incentive for the industry. The bill maintains an existing exemption for equipment used in qualified data centers through 2050, while creating a new extended exemption through 2065 for "enterprise data centers" located on brownfield sites or former power plant properties. To claim these exemptions, data center operators must meet job creation thresholds: the original exemption requires that collectively, data centers and related contractors establish at least 400 jobs by 2022 and 1,000 jobs by 2026 in Michigan, while the enterprise data center exemption requires meeting specific performance criteria within a six-year timeframe as certified by the Michigan Strategic Fund. The bill affects equipment purchases for data center construction and operation, potentially saving companies significant sales tax on expensive computing infrastructure and real estate improvements. The exemption structure ties tax benefits directly to job creation and economic development outcomes, making it relevant to both the data center industry seeking predictable incentives and policymakers concerned with workforce development. As of April 14, 2026, the bill has been introduced and referred to the Committee on Government Operations, with tie-bar language indicating it is linked to companion bills HB 5786 and HB 5787 for coordinated passage.

House Bill 5790 amends Michigan's sales tax law to extend and expand tax exemptions on equipment purchases for data centers through 2050, and through 2065 for facilities located on brownfield sites or former power plant properties. The bill creates two categories of exemptions: one for "qualified data centers" that requires the sector to collectively demonstrate creation of at least 1,000 data center jobs statewide by April 1, 2026 to maintain eligibility, and a second for "enterprise data centers" that must obtain and maintain a certificate from the Michigan Strategic Fund. These exemptions apply to equipment sales to data center owners and operators as well as to construction contractors performing work on these facilities. The measure affects Michigan's data center industry by providing substantial financial incentives to attract and retain large-scale data center investments, which are capital-intensive operations that can generate significant employment and economic activity. The bill was introduced on April 14, 2026 and referred to the House Committee on Government Operations, meaning it is in the early stages of the legislative process. For policymakers and industry observers, this bill signals Michigan's commitment to competing for data center development through long-term tax incentives, though the effectiveness will depend on whether the sector meets the job creation thresholds specified in the legislation.

House Bill 5777, introduced in Michigan on April 14, 2026, would establish comprehensive state regulation of large-scale data centers through a new "Large-Scale Data Center Life Cycle Financial Responsibility Act." The bill defines large-scale data centers as facilities with at least 5 megawatts of critical information technology load or 25,000 square feet of building space, excluding certain institutional and governmental facilities, and would require their registration with state agencies while subjecting them to oversight by the Michigan Public Service Commission and the Department of Environment, Great Lakes, and Energy. Operators of large-scale data centers would face mandatory contract provisions, financial responsibility obligations, and fees that would be deposited into a dedicated state fund, with civil sanctions available for non-compliance. The legislation affects both new data centers and existing facilities undergoing significant expansions of at least 10 percent in electrical load, water use, computing capacity, or land footprint, making it potentially applicable to many ongoing projects in the state. For Michigan's data center industry, the bill represents a significant shift toward state-level regulatory control and financial burden compared to current practice, which could impact project economics, timelines, and site selection decisions. The bill is currently in the House Committee on Government Operations following its introduction, with its trajectory dependent on committee action and broader legislative support for this comprehensive regulatory framework.

House Bill 5791 would extend and expand Michigan's use tax exemptions for data center equipment, removing the sales tax burden on specialized equipment purchases and construction materials used in data center operations. The bill establishes two primary exemption tracks: one covering qualified data centers through 2050, and another covering newer "enterprise data centers" with certificates from the Michigan Strategic Fund, which would receive exemptions extending through either 2050 or 2065 for brownfield sites and former power generation facilities. To maintain eligibility, the exemptions are conditional on Michigan's data center sector collectively creating at least 400 jobs by 2022 and at least 1,000 jobs by 2026, with progress tracked and reported by local economic development corporations. The bill affects data center operators, colocated businesses, and construction contractors who work on qualifying facilities, making equipment purchases and infrastructure improvements significantly cheaper and lowering the cost of doing business in the state. This legislation matters for Michigan's economic development strategy because data centers represent high-value, technology-intensive investments that create jobs and generate long-term tax revenue, and the extended exemptions position the state to compete with other jurisdictions for major data center projects. As of April 14, 2026, the bill has been introduced in the House and referred to the Committee on Government Operations, with its prospects for passage dependent on committee review and floor consideration.

Michigan House Bill 5776 would modify the state's property tax exemption law to explicitly prohibit tax-exempt status for data center facilities operated by public universities. Currently, property owned and operated by educational institutions incorporated in Michigan receives a blanket exemption from state property taxes, but this bill would carve out an exception for any facility a public university uses solely to operate a data center, defined as infrastructure designed to house computing, storage, networking, cooling, or power systems for third-party commercial data processing. The change would affect Michigan's 15 public universities that receive state funding under the School Aid Act, potentially making any data center operations they undertake subject to local property taxation rather than exempt. This matters for data center development because it removes a significant financial incentive for public universities to develop or expand data center operations within the state, which could influence where such facilities are built and how universities fund their information technology infrastructure. The bill was introduced on April 14, 2026, with support from nine House representatives and was referred to the Committee on Government Operations, where its current status and prospects for advancement are unknown. The policy signals a deliberate choice by Michigan lawmakers to treat university-operated data centers as commercial enterprises rather than educational activities deserving tax-exempt status.

This Michigan bill amends the state's sales tax law to establish and expand exemptions on equipment purchases for data center operations, covering both existing "qualified data centers" and new "enterprise data centers" that obtain special certificates from the Michigan Strategic Fund. The exemption applies to equipment sales to data center owners, operators, and construction contractors building or improving these facilities, with the tax break extending through December 31, 2050 for most facilities and potentially through 2065 for enterprise data centers on brownfield sites or former power plants. To maintain the exemption for qualified data centers, the state must verify that these facilities collectively create at least 400 data center jobs by April 1, 2022, and at least 1,000 such jobs by April 1, 2026, with ongoing reporting requirements thereafter. Enterprise data centers seeking the exemption must apply to the Michigan Strategic Fund, which has 120 days to issue a certificate and must verify the facility will meet specific criteria within six years. The bill ties together with two companion measures (HB 5785 and HB 5786) and was introduced on April 14, 2026, indicating this is part of a coordinated legislative effort to incentivize major data center investment in Michigan through targeted tax relief and performance-based job creation benchmarks.

House Bill 5849, introduced in Michigan on April 22, 2026, would impose mandatory cybersecurity and physical security requirements on data center operators throughout the state. The bill requires all data centers to implement risk-based cybersecurity and resilience programs aligned with national frameworks such as NIST standards and guidance from the Cybersecurity and Infrastructure Security Agency, while also mandating specific operational safeguards including redundant cooling systems, manual override access, and network segmentation based on facility size and risk profile. Data center operators would be required to develop and maintain both incident response and disaster recovery plans with detailed protocols for personnel coordination, system restoration, emergency responder coordination, and periodic plan testing. Violations would result in civil fines of up to $25,000 per day, which enforcement officials such as county prosecutors or the state attorney general could pursue. For the Michigan data center industry, this legislation represents a significant increase in regulatory and operational compliance requirements that could affect development timelines and costs for both new facilities and existing operations. The bill's current status reflects early-stage legislative processing as of its introduction and electronic reproduction in April 2026, with its ultimate adoption and implementation timeline dependent on committee review and further legislative action.

House Bill 5846, introduced in Michigan on April 22, 2026, would create a new law allowing local governments to establish "data center overlay districts" as a zoning tool to manage the impacts of data center facilities within their jurisdictions. Under this framework, local units of government (counties, townships, cities, and villages) would have the discretion to designate specific geographic areas where data centers could face additional regulations addressing concerns such as energy consumption, water usage, noise, emissions, traffic, workforce housing, and emergency services capacity. The bill defines what qualifies as a "large-scale data center" based on criteria like electrical load or water usage, which local governments would establish through their own ordinances, and would allow them to restrict such facilities to designated overlay districts if they choose. Before creating or modifying these districts, local governments would be required to consider local impacts and would have the option to conduct studies, hold public hearings, and consult with utilities and emergency responders, all subject to Michigan's open meetings and public records laws. The bill does not mandate that local governments establish these districts or impose any specific requirements on data centers, making it an enabling statute that preserves local regulatory flexibility while remaining supplemental to existing Michigan zoning law. With the bill currently in the Government Operations Committee stage, its trajectory will likely depend on how local governments, data center developers, and communities view the balance between economic development and environmental and infrastructure concerns.

House Bill 5881 would amend Michigan's zoning enabling act to make local zoning ordinances subject to a "data center planning and responsibility act," though the specific provisions of that referenced act are not included in this bill excerpt. The change means that once the data center planning and responsibility act is established, local governments' zoning rules would need to comply with its requirements, similar to how current zoning ordinances must comply with laws governing electric transmission lines, wireless communications facilities, and renewable energy projects. The practical impact on data center development in Michigan depends entirely on what restrictions or allowances the referenced data center planning and responsibility act contains, information not visible in this bill text alone. The bill is tied to House Bill 5882, meaning it cannot take effect unless that companion bill is also enacted, suggesting the two bills work together to create a comprehensive data center regulatory framework. As of April 23, 2026, the bill was recently introduced and referred to the Committee on Government Operations, placing it early in the legislative process. Industry observers and local officials will need to examine HB 5882 to understand whether this legislation streamlines data center approvals or imposes new planning requirements on communities hosting these facilities.

House Bill 5882, titled the "Data Center Planning and Responsibility Act," would establish strict procedural and substantive requirements that local governments must follow before imposing moratoriums on large-scale data centers and cryptocurrency mining facilities in Michigan. The bill defines key terms including "large-scale data center" (facilities exceeding electrical load thresholds set by the Michigan Public Service Commission) and "cryptocurrency mining facility" (operations consuming more than 1 megawatt of energy to secure blockchain protocols), and it identifies a broad range of potential local impacts that communities may consider, from energy grid reliability and water supply to workforce effects and emergency response capacity. Before implementing a moratorium, local units of government would be permitted to establish task forces, conduct public hearings, require applicants to submit expert studies on project impacts, and consult with qualified experts to evaluate those studies. The bill requires that any moratorium adopted must be done through an ordinance or resolution at a public meeting and must include specific provisions detailing the moratorium's scope, exemptions, and a process for potential applicant appeals or reviews, effectively constraining the discretion local governments have historically exercised over land use decisions. As of April 23, 2026, the bill has been introduced in the Michigan House and referred to the Committee on Government Operations, with a companion measure (HB 5881) tied to it. This legislation reflects a state-level effort to preempt local authority over data center development, which could significantly impact communities seeking to regulate or limit these facilities based on local environmental, infrastructure, or quality-of-life concerns.

House Bill 5982 would amend Michigan's utility regulation law to require that any contract between a utility company and a large-load data center offering preferential rates must undergo formal contested case proceedings before it can take effect. The bill defines a large-load data center as a facility projected to have a peak electric demand of 100 megawatts or more within 36 months, and it requires utilities to aggregate demand across affiliated and functionally integrated facilities when making this determination. Under the proposed rule, covered utilities cannot approve such contracts on an expedited basis, and the contracts have no legal force until the Michigan Public Service Commission completes a full contested case review and issues a final order of approval. The bill explicitly states that these requirements are procedural only and do not change the substantive standards the commission uses to evaluate rate requests or prevent data centers from receiving service or expanding operations. The legislation affects electric utilities, municipally owned utilities, cooperative utilities, and gas utilities operating in Michigan that might otherwise enter into individualized service agreements with large data center operators. As of May 14, 2026, the bill was electronically reproduced and referred to the House Committee on Government Operations, where it awaits further action.

Senate Bill 1020 would impose a moratorium on the Michigan Public Service Commission's authority to approve any contracts, tariffs, discounts, or rates between electric utilities and qualified data centers, effective immediately upon passage and lasting until April 1, 2027. The bill defines a "qualified data center" as any facility in Michigan composed of one or more buildings designed to house equipment for centralized data storage and processing. This restriction directly affects data center operators seeking favorable electricity pricing arrangements with Michigan utilities, as the Public Service Commission would be prohibited from approving such utility agreements during the moratorium period. For the data center industry, the moratorium represents a significant barrier to expansion and new facility development in Michigan, since competitive electricity rates are typically essential to the economic viability of large data center projects. The bill was introduced on June 4, 2026, by Senators Runestad and Johnson and has been referred to the Committee on Government Operations, where it currently awaits further legislative action. The moratorium's nearly year-long duration suggests proponents may be seeking time to study the impact of data centers on Michigan's energy infrastructure and grid capacity before allowing new utility agreements.

Senate Bill 1019 would amend Michigan's zoning enabling act to add the data center regulation act to a list of state laws that supersede local zoning ordinances. Currently, Michigan law already exempts certain infrastructure projects from local zoning control, including electric transmission lines, wireless communications facilities, and renewable energy projects. This bill would extend that same preemption to data centers by adding the data center regulation act to Section 205 of the Michigan zoning enabling act, meaning that data center projects approved under state law would no longer be subject to local municipal zoning restrictions. The bill affects Michigan counties and townships by limiting their authority to impose zoning requirements on data center development, though the specific impacts depend on the details of the separate data center regulation act referenced in the bill. This legislation is tied to Senate Bill 1018, meaning it cannot take effect unless that companion bill also passes. The bill is currently referred to the Committee on Government Operations and has not yet moved forward in the legislative process.

Senate Bill 1018 would impose a statewide moratorium on new data center approvals and operations in Michigan from its effective date through April 1, 2027. The bill prevents both local governments (counties, townships, cities, and villages) and the state Department of Environment, Great Lakes, and Energy from issuing permits, approvals, or authorizations for data centers during this period, and prohibits any person or entity from beginning operation of a new data center facility. Violations of the operational ban would result in civil fines of up to $1,000 per day, enforceable by county prosecutors or the state attorney general. The bill is tied to Senate Bill 1019, meaning it cannot take effect unless that companion legislation is also enacted. Currently referred to the Committee on Government Operations, the bill represents a significant pause on data center development in the state, potentially affecting industry expansion plans and local economic development projects that depend on data center facilities. The nearly one-year moratorium would allow time for policymakers to evaluate and develop comprehensive regulatory frameworks for data center operations before new facilities can be approved or opened.

House Bill 6135 would require Michigan's Public Service Commission to establish special electricity rates for data centers within 180 days of the bill becoming law, with rates structured around five key requirements: mandatory 15-year contracts with utilities, minimum monthly charges based on at least 60 percent of contracted demand regardless of actual usage, early termination fees calculated as the monthly charge multiplied by remaining contract months, collateral requirements equal to 24 months of maximum charges, and provisions ensuring data centers pay all costs for generation, transmission, and distribution infrastructure they require. The bill affects data center operators seeking to locate or expand facilities in Michigan and would fundamentally reshape how these facilities negotiate power supply arrangements with electric utilities. For the state's data center industry, this legislation creates substantial financial barriers and long-term contractual obligations that could significantly discourage new development or expansion, contrasting with incentive-based approaches other states use to attract data center investment. The bill is tied to six companion bills (HB 6137-6142 or their Senate counterparts) and will not take effect unless all companion measures are also enacted, meaning its passage depends on coordinated legislative action across multiple related bills. As of June 25, 2026, the bill has been introduced and referred to the Committee on Government Operations but has not yet advanced further in the legislative process. The broad bipartisan sponsorship from 25 House members suggests significant legislative momentum behind the package of data center-related measures.

House Bill 6138, introduced on June 25, 2026, would establish Michigan's "Data Center Water Regulation Act," creating strict requirements for how data centers in the state can source and use water for cooling operations. The bill requires that any data center beginning construction or operation after the law takes effect must either use a closed-loop cooling system that recirculates water without drawing from external sources or source all cooling water exclusively from municipal water systems, effectively prohibiting the use of groundwater or surface water. For data centers already operating in violation of these requirements, the bill mandates immediate cessation of operations, with violators subject to civil fines up to $1,000,000 per day of noncompliance, enforceable by county prosecutors or the state attorney general. The measure is tied to five companion bills in the legislature and will only take effect if all of those bills are also enacted, suggesting a coordinated legislative effort around data center regulation. This legislation would significantly constrain data center development and operations in Michigan by imposing substantial operational and financial barriers, reflecting growing concerns about water consumption in the data center industry. The bill is currently in the early stage of the legislative process, having just been introduced and referred to the House Committee on Government Operations.

House Bill 6142 would require Michigan's Public Service Commission to mandate comprehensive decommissioning plans before approving any electricity tariff, rate agreement, or contract between data centers and electric utilities. These plans must ensure that data center properties are restored to their pre-construction condition and must be backed by substantial financial assurance in the form of performance bonds, letters of credit, or escrow accounts equal to the estimated decommissioning costs as determined by the commission or an independent third party. The commission would be required to review these financial assurances every three years to confirm sufficient funds remain available for future site remediation. The bill affects any facility in Michigan designed to house data center equipment for centralized data storage and processing, and represents a significant regulatory and financial requirement that would apply before new data center utility contracts could be approved. The legislation was introduced on June 25, 2026, and is currently in the House Committee on Government Operations. The bill is contingent upon passage of five companion bills (HB 6135, 6137, 6138, 6139, and 6140), meaning it will not take effect unless all of these related measures are also enacted into law.

House Bill 6140, the "Data Center Transparency Act," would prohibit elected officials in Michigan political subdivisions from signing nondisclosure agreements with data center owners when a municipality offers tax incentives to attract a facility. The bill defines nondisclosure agreements broadly to include any contract provision that keeps data center construction confidential or restricts public discussion of the project, though it carves out an exception allowing redaction of proprietary information about the data center's operations, which state agencies could still review. This legislation targets a governance and transparency issue rather than the development of data centers themselves, as it does not restrict companies from building facilities, impose new taxes or regulatory requirements, or prevent legitimate business confidentiality protections for intellectual property. The bill would apply only to agreements entered into on or after its effective date and would void any nondisclosure agreements that violate its terms. As of June 25, 2026, the bill has been introduced and referred to the Committee on Government Operations but has a significant procedural hurdle: it is tied to five other companion bills and will not take effect unless all of those measures are also enacted into law, making its passage dependent on coordinated legislative action across a package of related data center bills.

House Bill 6137, introduced in Michigan on June 25, 2026, would require data center developers to negotiate and obtain approval of community benefit agreements from both local governments and the state Public Service Commission before beginning any construction or operation. Under the bill, developers would need to file separate applications with their local unit of government and the commission, each of which would have 90 days to approve or deny the agreement, and no local permits or utility interconnections could be granted without prior local approval of the agreement. The required community benefit agreements must address at least half of five specified topics including local hiring, water usage, infrastructure cost allocation, community investment funding, and home efficiency improvements, and must be binding and enforceable against all current and future owners and operators of the data center. This legislation significantly affects data center development in Michigan by adding procedural requirements and negotiation obligations that could extend timelines and increase costs before projects can proceed, potentially making Michigan a less competitive location for data center investment compared to other states. The bill has been referred to the House Committee on Government Operations and is tied to seven companion bills also introduced in 2026, suggesting part of a broader legislative effort in this area. As of the latest action on June 25, 2026, the bill has only been electronically reproduced and remains in committee with no further advancement noted.

House Bill 6141 would amend Michigan's Public Utilities Act to require that all construction and construction maintenance work on data center projects receiving electric utility contracts, tariffs, discounts, or rates approved by the Public Service Commission must be performed under either a project labor agreement or a collective bargaining agreement. The bill defines a project labor agreement as a prehire agreement with labor organizations that establishes employment terms, binds all contractors and subcontractors, allows non-union contractors to compete, and includes protections against strikes and procedures for resolving labor disputes. This requirement would apply to any facility in Michigan designed to house data center equipment for centralized data storage and processing. The bill's practical effect would be to make data center development projects in Michigan more expensive and potentially more complex, as developers and their contractors would need to negotiate labor agreements before construction can proceed and receive utility rate approvals. The bill is currently in the early stages of the legislative process, having been introduced on June 25, 2026, and referred to the House Committee on Government Operations, though its passage is contingent on the enactment of six related companion bills also pending in the legislature. Industry observers view this as a significant pro-labor measure that could substantially reshape the economics of data center projects seeking to locate in Michigan.

House Bill 6136 would amend Michigan's zoning enabling act to make local zoning ordinances subject to a "data center community benefit agreement act," a referenced law whose specific provisions are not included in this bill excerpt. The legislation adds data centers to a list of projects and infrastructure types that can override or constrain local zoning decisions, placing them alongside electric transmission lines, transit authority projects, small wireless facilities, and renewable energy projects. The bill's practical effect depends entirely on the content of the referenced data center community benefit agreement act, which would presumably establish requirements that local governments must follow when reviewing or approving data center projects. The measure cannot take effect unless either Senate Bill number unknown or House Bill 6137 is also enacted, indicating these bills are linked as a package. As of June 25, 2026, the bill has been electronically reproduced and referred to the House Committee on Government Operations, marking an early stage in the legislative process. For data center developers and local governments in Michigan, this bill could significantly reshape how communities can regulate or restrict data center development, though the full implications remain unclear without seeing the companion legislation and the data center community benefit agreement act itself.

House Bill 6139 would require applicants seeking building permits for data centers in Michigan to submit a comprehensive acoustic engineering report prepared by a licensed professional engineer. The report must include baseline ambient noise measurements around the property and nearby residences, computer modeling of operational noise conducted to international standards, projections of construction-phase noise, separate day and night noise level comparisons, and an analysis showing how the facility's noise would compare to either local noise ordinances or nationally recognized standards if no local ordinance exists. Before issuing a building permit, the enforcing agency must share the acoustic report with both the Michigan Public Service Commission and the local government where the data center will be located. The bill is part of a coordinated legislative package with six related bills on data centers, and would take effect 180 days after enactment only if all the companion bills are also passed. As of June 2026, the bill has been introduced and referred to the House Committee on Government Operations, where it awaits further consideration.

Michigan Senate Bill 762 would require the state's Public Service Commission to publish annual reports containing detailed information about water and energy consumption at data centers operating in Michigan. Starting July 1, 2027, the commission would compile and make publicly available the total water usage for each data center within each public water supply's service area, as well as the total energy consumption measured in gigawatts per year for each facility, with data collected from public water supplies by June 1 of each year. The reporting requirement applies to all facilities designed to house equipment for centralizing data storage and processing, with definitions aligned to existing state water safety regulations. This measure does not impose restrictions on data center operations, provide incentives for development, or mandate changes to how facilities use resources, making it primarily an informational and transparency mechanism. The bill was introduced in December 2025 with bipartisan sponsorship from six state senators and has since gained an additional co-sponsor, though its current status in committee is not specified in the available information. For industry stakeholders and policymakers, the legislation represents a procedural step toward public accountability for data center resource consumption without directly affecting the regulatory or economic landscape for facility development in the state.

The full text of this bill was not available for review, so this summary is based on the bill title and its most recent legislative action. Based on its title, this Michigan legislation appears to establish clean and renewable energy requirements that would apply to data center operations within the state. The bill would likely affect data center developers and operators by imposing standards for how these facilities source or use energy, potentially requiring a portion or all of their power to come from renewable sources. This type of legislation matters for Michigan's data center industry because energy costs and sourcing represent significant operational considerations for large facilities, and new mandates could increase compliance costs or affect site selection decisions. The bill was electronically reproduced on August 26, 2026, indicating it remains in the legislative process, though the specific chamber and next steps are not indicated by this action. For industry professionals and communities considering data center development, this bill represents an emerging policy consideration that could shape the economic and environmental profile of future projects in the state.

The full text of this Michigan bill was not available for review at the time of this summary. Based on the bill title and legislative history, the measure would establish mandatory reporting requirements for data centers to disclose their water and electricity usage to state authorities. The bill appears designed to increase transparency and oversight of data center resource consumption, which has become a growing concern in states experiencing rapid data center development and expansion. If enacted, the reporting requirements would likely affect all data centers operating in Michigan or any new facilities seeking to establish operations in the state. For Michigan's data center industry, this legislation could represent a significant regulatory change that increases compliance costs and administrative burdens, potentially influencing decisions about facility location and expansion. As of August 26, 2026, the bill has been electronically reproduced in its latest legislative action, indicating it remains under consideration in the legislative process.

The full text of this Michigan bill was not available for this summary, so the following overview is based solely on the bill title and legislative action. The legislation appears to establish new evaluation requirements and thermal management standards that data center operators must follow during development and operation. Based on the bill's language, it likely affects companies planning to build or expand data centers in Michigan, as well as potentially existing facilities undergoing modifications. The bill matters for data center development in Michigan because it would add regulatory requirements to the permitting and operational processes for these energy-intensive facilities, which could influence where and how companies choose to develop new infrastructure in the state. The thermal management focus suggests the legislation may be intended to address environmental concerns related to data center cooling systems and their broader impact on local energy use and infrastructure. As of August 26, 2026, the bill has been electronically reproduced in the legislative process but has not advanced to a later stage.

The full text of this Michigan bill was not available for this summary, so conclusions are based solely on its title and legislative history. The bill appears to require data center operators to conduct thermal impact assessments, a regulatory measure that would mandate evaluation of how these facilities affect surrounding temperature and environmental conditions. This legislation would likely apply to data center developers and operators seeking to build or expand facilities in Michigan, potentially affecting major technology companies and infrastructure investment in the state. The requirement represents a significant regulatory consideration for the data center industry, as thermal impact assessments would add compliance costs and potentially extend project timelines before facilities can be developed or modified. The bill was most recently reproduced electronically on August 26, 2026, indicating it remains in the legislative process, though its current committee assignment or likelihood of passage cannot be determined from the available information. For industry professionals and residents alike, this measure reflects growing attention to the environmental effects of data center operations, particularly regarding energy consumption and heat dissipation in Michigan communities.

The full text of this bill was not available for review, so this summary is based on the bill title and legislative action only. Introduced by Senator Veronica Klinefelt, this proposed Michigan legislation would amend the Public Utilities Act to require that certain data center construction contracts include project labor agreements and comply with prevailing wage and fringe benefit rate standards. The bill would likely apply to data centers receiving utility services or regulatory approvals under Michigan's public utilities framework, affecting both the developers undertaking projects and the construction workers employed on them. For Michigan's data center industry, this requirement could increase project costs and administrative complexity, potentially influencing investment decisions and project timelines compared to states without such mandates. The measure reflects ongoing policy debate about balancing labor protections and wage standards against concerns about regulatory burden on industrial development. As of now, the bill remains in its initial stages following introduction and has not advanced to committee review or further legislative action.

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 legislative history. The proposed legislation would create a new law requiring certain data centers operating in Michigan to enter into community benefit agreements as a condition of development or operation. Community benefit agreements typically involve negotiations between developers and local communities to address concerns such as environmental impacts, local hiring, infrastructure improvements, or other community-focused commitments in exchange for project approval. This requirement would add a new regulatory layer to data center projects in the state, potentially increasing development timelines and costs by mandating formal agreement processes with affected communities. For the data center industry, this could affect project feasibility and site selection decisions, while for residents and local governments, it could provide mechanisms to negotiate project terms and secure local benefits. The bill was introduced by Senator Veronica Klinefelt and is currently in the early stages of the legislative process.

The full text of this legislation was not available for review, so this summary is based solely 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 act," suggesting an effort to create a regulatory framework that facilitates data center development while requiring developers to provide specified community benefits. The legislation appears designed to streamline zoning processes for data center projects while addressing potential community concerns through mandatory benefit agreements rather than zoning restrictions. This change would likely affect local governments' zoning authority, data center developers seeking to build facilities in Michigan, and residents in communities where such facilities might be located. For Michigan's data center industry, the bill could reduce permitting obstacles and accelerate project timelines, positioning the state as more competitive for major data center investment. The bill is currently in the Senate with Senator Veronica Klinefelt named as a cosponsor, and it is tied to Senate Bill 1050 for 2026, indicating ongoing legislative interest in coordinating data center policy across related measures.

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's 1939 Public Utilities Act by adding a new section establishing a separate rate class specifically for large-load customers of public utilities. Large-load customers typically include industrial facilities and data centers that consume substantial amounts of electricity, and a distinct rate class could allow utilities to establish different pricing structures or terms for these high-consumption users. This type of regulatory classification matters for data center development because it clarifies how utilities will price electricity for large facilities, potentially affecting the cost calculations that companies use when deciding whether to locate or expand data center operations in Michigan. The bill currently has limited forward momentum, with Senator Veronica Klinefelt recently named as a co-sponsor, though no further legislative action has been recorded. Without access to the complete bill text, it is unclear whether the proposed rate treatment would be favorable, unfavorable, or neutral for data center investment in the state.

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 status in the legislative process. The legislation would create a new act establishing reporting requirements for data centers operating in Michigan, a procedural measure that would mandate these facilities to submit information to state authorities. While the specific details of what data centers must report cannot be confirmed without the full text, such requirements typically cover energy consumption, water usage, employment, infrastructure investments, or environmental impact metrics. This bill would likely affect all data center operators in Michigan, as well as state agencies responsible for tracking and monitoring these facilities. The reporting requirement represents a neutral policy approach that neither encourages nor discourages data center development but instead seeks to improve state-level data collection and transparency. The bill is currently in its early stages, having been referred to the Michigan House Committee on Energy and Environment for review and consideration.

Michigan House Bill 6391, titled the "Data Center Siting and Community Protection Act," would establish comprehensive new siting requirements and mandatory independent assessments for large-scale data centers in the state, defined as facilities with at least 25 megawatts of critical IT load or 50 megawatts of total electrical demand. Under the bill, data center developers would be required to submit detailed impact assessments covering acoustic effects, agricultural impacts, construction effects, cumulative environmental impacts, emergency services capacity, and thermal analysis before any local government could approve a project. A critical provision mandates that local units of government issue a "site certificate" before granting any permits, land use approvals, or other authorizations for large-scale data centers, giving municipalities substantial gatekeeping power over such developments. The legislation affects major data center operators and developers seeking to build or expand facilities in Michigan, as well as local governments that would gain new regulatory authority, while it matters significantly for the state's data center industry competitiveness and economic development strategy. As of September 24, 2026, the bill has been electronically reproduced and remains in early legislative stages, with current sentiment among industry analysts classified as highly anti-development due to the substantial compliance burdens and local control mechanisms it creates.

House Bill 6388 would add "The data center siting and community protection act" to a list of state laws that local zoning ordinances must comply with in Michigan. The bill amends the Michigan Zoning Enabling Act by inserting this new requirement into Section 205, which already mandates that zoning rules subject themselves to several other state acts governing electric transmission lines, transit authorities, wireless facilities, and renewable energy projects. The actual scope and requirements of the data center siting and community protection act are not detailed in this bill excerpt, meaning the precise obligations or restrictions it would impose on local governments or data center developers remain unclear from this text alone. The bill's effectiveness depends on companion legislation, House Bill 6391, also being enacted into law, as indicated by the tie bar provision in the bill's closing section. If approved, this legislation would likely streamline data center development in Michigan by establishing state-level siting standards that would override or supplement local zoning decisions. The bill was electronically reproduced on September 24, 2026, and its passage would take effect 90 days after enactment, assuming the companion bill also passes.

The Data Center Local Decision Protection Act, introduced in Michigan's House in September 2026, would establish mandatory disclosure and public review requirements for large-scale data center projects, defined as facilities with 25 megawatts or more of computing capacity or 50 megawatts or higher electrical demand. Before a local government can approve any permit, zoning change, or other authorization for such a data center, the developer must submit detailed information about energy demand, water use, infrastructure needs, environmental impacts, ownership structure, and phased development plans, along with a plain-language public summary that must be available for public review for at least 30 days. The bill empowers local units of government, including counties, townships, cities, and villages, to request additional information from developers about potential community impacts such as noise, vibration, lighting, traffic, and strain on public infrastructure and emergency services, with developers required to either comply promptly or provide written explanations for why they cannot. The legislation applies specifically to large-scale data centers, which include hyperscale and mega-hyperscale facilities, and uses broad definitions of corporate control to capture related developments and phased expansions. The bill was reproduced electronically on September 30, 2026, and is tied to HB 6427, though its current status in committee or likelihood of passage is not indicated in the available information. For data center developers and the industry, this bill would substantially increase procedural requirements and local scrutiny before projects can move forward, while for local communities it would provide greater transparency and decision-making authority over large industrial facilities in their jurisdictions.

House Bill 6427 would amend Michigan's zoning enabling act to subject local zoning ordinances and zoning board of appeals decisions to a "data center local decision protection act," a law that is referenced but not detailed in the bill excerpt provided. The bill modifies sections 205 and 606 of the 2006 Michigan Zoning Enabling Act to add this data center protection as a constraint on local zoning authority, similar to existing constraints related to electric transmission lines, wireless facilities, and renewable energy projects. This change would limit the ability of Michigan municipalities and townships to independently regulate data center development through local zoning decisions and appeals processes, bringing those decisions under the parameters of the separate data center protection statute. The bill also modifies appeal procedures for zoning board decisions by subjecting them to sections 9 and 11 of the data center local decision protection act, which are not included in this excerpt. As of September 30, 2026, the bill was introduced and referred to the House Committee on Government Operations, and it is tied to House Bill 6426, suggesting these measures are intended to work together in reshaping how Michigan regulates data center siting at the local level. The bill's passage would represent a significant shift in zoning authority away from local communities toward state-level preferences for data center development.

SF 3852 would require large industrial and commercial water users, including data centers that consume over 100 million gallons annually, to obtain independent water-use permits rather than modifying existing municipal permits. Under current law, such users can request amendments to a city's existing permit, but this bill would eliminate that option for large users, instead requiring them to go through a separate permitting process with public notice and comment periods of at least 30 days. The bill also mandates that the state Department of Natural Resources conduct aquifer testing when necessary to protect public health and safety, and requires monthly reporting of water use for these large users instead of the current annual reporting requirement. For data center operators, this represents a significant increase in regulatory requirements and timeline for permitting, as the process would involve public disclosure, stakeholder notification across entire watersheds, and mandatory environmental review. The bill was introduced on February 23, 2026, and an author was added as recently as April 8, 2026, suggesting ongoing legislative interest. Given the high-confidence anti-sentiment classification, the bill appears designed to create additional oversight and barriers for large data center water appropriation projects in Minnesota.

HF 2928 is a Minnesota bill that creates new regulatory requirements and financial obligations for data centers operating in the state. The bill establishes environmental review standards for data center projects, imposes fees on data center operators, requires the Public Utilities Commission to create a new tariff structure for data centers, and exempts data centers from contributing to energy conservation and optimization plans while also removing their energy consumption from utility energy savings calculations. The legislation also mandates preapplication filing procedures for large water appropriation projects exceeding 100 million gallons per year, which would affect data centers that require significant water resources for cooling operations. For the data center industry, these provisions represent increased compliance costs and regulatory scrutiny, though the exemption from energy conservation contributions could provide some operational relief. The bill was in its introductory stage as of March 27, 2025, with Representative Jones recently added as an author, suggesting ongoing legislative development. Given the regulatory burdens and fees imposed on the sector, industry stakeholders are likely to view this bill unfavorably, while environmental and water conservation advocates may support enhanced oversight of large data center projects.

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 one hearing dedicated solely to public information. The bill mandates that municipalities disclose specific information at least 48 hours before public hearings, including the petitioner's name, the anticipated end user's identity, the facility's location and size, estimated security guard numbers and whether they will be armed (if the data center is near residential areas), and the scope of utilities required for operation. These disclosure requirements would apply regardless of any nondisclosure or confidentiality agreements signed by the municipality or its agents, effectively overriding private contract restrictions. The legislation affects data center developers, municipal governments, and community residents by establishing new procedural transparency requirements that could extend project timelines and limit confidentiality in development negotiations. With the most recent action showing that Representative Jones was added as an author on March 23, 2026, the bill remains in the early stages of the 2025-2026 legislative session. For industry observers, the bill represents a significant regulatory shift that could affect site selection decisions and project planning, particularly in areas near residential zones where security staffing details must be disclosed.

SF 5100 is a comprehensive bill that provides multiple economic and regulatory benefits to data centers in Minnesota, including exemptions from solar energy standard calculations, sales tax exemptions on electricity purchases, fee waivers, and streamlined water appropriation review processes. The bill modifies Minnesota's water appropriation permitting system to allow data centers consuming over 100 million gallons of water annually to request preapplication evaluations that help identify water availability constraints before submitting formal permit applications, with information from these consultations kept nonpublic. Additional provisions address energy generation redundancy requirements for data centers and modify how data center electricity consumption is calculated under the state's renewable energy standards. The bill affects large-scale data center operators and developers seeking to establish or expand facilities in Minnesota, as well as utilities that must account for data center electricity usage in their renewable portfolio calculations. Data center development has emerged as a significant economic priority for Minnesota due to the industry's substantial capital investment and job creation potential, making these regulatory and tax incentives important for the state's competitive positioning in attracting major facilities. The bill is currently in the early legislative stage, having been referred to the Energy, Utilities, Environment, and Climate committee, where it will face scrutiny regarding its environmental implications, particularly concerning water use and the state's renewable energy goals.

HF 4990 is a comprehensive bill that modifies Minnesota's regulatory framework for data center development across multiple policy areas, including water appropriations, renewable energy standards, taxation, and energy infrastructure. The bill streamlines the preapplication evaluation process for water permits by allowing the Department of Natural Resources to conduct early assessments of water availability and constraints before formal applications are submitted, potentially accelerating project timelines for large data centers consuming over 100 million gallons of water annually. Additional provisions exempt certain data center electricity sales from calculations of utilities' solar energy compliance standards, exempt data centers from specific fees, and provide sales tax exemptions on electricity purchases, all of which reduce operating costs and regulatory burdens for the industry. The bill also includes provisions related to energy generation redundancy for data centers, though the specific details of these requirements are not visible in the excerpt provided. Currently at the introduction and first reading stage, the bill has been referred to the Environment and Natural Resources Finance and Policy Committee, positioning it for further deliberation before advancing in the legislative process. These modifications collectively signal Minnesota policymakers' intent to make the state a more competitive location for data center investment by reducing financial and administrative barriers to development.

Senate File 5231 would repeal Minnesota's sales and use tax exemption for enterprise information technology equipment and computer software used in qualified data centers, a significant tax incentive that has encouraged data center development in the state. The bill removes the existing exemption under Minnesota Statutes section 297A.68, subdivision 42, which previously allowed data center operators to avoid state sales taxes on servers, routers, computers, and related equipment necessary for facility operations. By eliminating this exemption, the bill would increase the tax burden on data center construction and operation, potentially making Minnesota a less attractive location for new data center investment compared to competing states that offer similar incentives. The legislation also repeals a contingent reduction in special education aid appropriations that was tied to the original data center tax exemption, addressing a separate budgetary consequence of removing the exemption. As of the latest recorded action in April 2026, Senator Boldon was added as an author to the bill, indicating ongoing legislative engagement with the proposal. The repeal would take effect July 1, 2026, and would likely face opposition from the data center industry and economic development advocates who view the tax exemption as crucial to maintaining Minnesota's competitiveness in attracting major technology infrastructure investments.

HF 4888 would establish a statewide moratorium on new data center permits in Minnesota, prohibiting both state and local governments from issuing permits for data centers until one year after the Public Utility Commission submits a comprehensive report on data center development. The Public Utility Commission must complete and submit this report to legislative committees by July 1, 2027, with a possible extension to January 1, 2028, and the report must assess energy usage, water consumption, metals usage, localized environmental impacts, effects on protected species and Tribal Nations' treaty rights, job creation, tax revenue and expenditures, and suitable locations that minimize residential disruption. The bill affects data center developers and operators seeking to expand operations in Minnesota, as well as local governments currently authorized to permit such facilities, while it may interest communities concerned about resource consumption and environmental impacts. The legislation matters significantly for Minnesota's data center industry, which has seen substantial growth due to the state's cool climate and available infrastructure, as it signals potential regulatory restrictions on future expansion pending a detailed state assessment. The bill's latest action shows that Representative Fischer was added as an author as of the current legislative session, indicating ongoing support for the measure. The moratorium's passage would represent a major shift in Minnesota's approach to data center development and could influence how other states evaluate similar projects.

HF 4173 modifies Minnesota's tax exemptions for data centers by creating a new category called "qualified large-scale data center" with a $250 million investment threshold and more flexible location requirements that allow facilities to span multiple physical locations rather than being confined to a single parcel. Simultaneously, the bill narrows the definition of standard "qualified data centers" by changing the square footage requirement from "at least 25,000 square feet" to "fewer than 25,000 square feet," which effectively creates a tiered system where larger, multi-location facilities qualify for the new large-scale category while smaller facilities fall into the traditional qualified data center category. The bill also adds a definition of "enterprise information technology equipment" to clarify what equipment qualifies for the exemptions, covering servers, routers, and other computing and storage equipment necessary for data center operations. These changes would apply to sales and use tax exemptions for equipment and software purchases at qualifying facilities, with an effective date of July 1, 2026. The legislation aims to streamline tax treatment for large-scale data center developments while maintaining clarity around which facilities qualify for exemptions under each category. With Kozlowski recently added as an author, the bill appears to have active support as it moves through the legislative process.

HF 3793 modifies Minnesota's groundwater permitting rules to require large industrial and commercial water users, including data centers consuming more than 100 million gallons annually, to obtain their own standalone water-use permits rather than modifying existing municipal permits. The bill establishes new procedural requirements for such permits, including mandatory public notice and comment periods of at least 30 days, notification to municipalities within the same watershed, posting on the Department of Natural Resources website, and potential aquifer testing if the commissioner determines it necessary to protect public health and safety. Data center operators and other large water users affected by these thresholds will face longer permitting timelines and increased regulatory scrutiny, as the bill also mandates monthly water-use reporting for high-volume users instead of annual reporting. The legislation emphasizes water conservation technologies and measures, requiring permit applicants to demonstrate reasonable consideration of water-efficient fixtures, recycling systems, reclaimed water use, closed-loop systems, and watershed restoration efforts. With Jones recently added as an author on February 26, 2026, the bill appears to be moving through the introductory stages of the 2025-2026 legislative session and will likely face debate between proponents concerned about groundwater depletion and data center interests seeking streamlined development pathways.

Minnesota House File 5125 would eliminate a significant tax incentive for data center operations by repealing the sales and use tax exemption for enterprise information technology equipment and computer software used in qualified data centers. The bill removes language from Minnesota Statutes that currently exempts these purchases from the state's standard sales tax rate, effectively increasing the operating costs for data center companies that have previously benefited from this tax break. This change would affect both new data center construction and existing operations, as companies would need to pay sales tax on servers, routers, networking equipment, and related infrastructure that was previously tax-exempt. The legislation also redefines what constitutes a "qualified large-scale data center" for other regulatory purposes and repeals a contingent reduction in special education aid appropriations that was apparently linked to the original data center tax exemption policy. With the latest legislative action showing an author addition on the bill, HF 5125 remains in active consideration, though the direction and likelihood of passage are not yet determined from the excerpt provided. For Minnesota's data center industry, this represents a potential shift away from tax-based incentives for facility development and investment in the state.

House Bill 3369 would impose a moratorium on data center construction permits in Missouri's independent cities until August 28, 2027, effectively pausing the acceptance, processing, and approval of any applications related to acquiring, constructing, reconstructing, or expanding data center facilities. The bill defines data centers broadly to include facilities used for data processing, storage, and distribution, encompassing servers, artificial intelligence training, cryptocurrency mining, cloud computing, and related operations. Applications submitted before August 28, 2026, would be exempt from the pause and would continue processing under existing procedures, providing a one-year window before the moratorium takes effect. The measure applies only to independent cities in Missouri, meaning cities that operate outside county governance structures, which significantly limits its geographic scope within the state. Currently in the House Emerging Issues Committee, the bill represents a policy decision to slow or study the impact of data center development before allowing new projects to proceed. For the data center industry and communities in affected Missouri jurisdictions, this legislation could delay significant capital investments and infrastructure projects while policymakers evaluate the economic, environmental, and resource implications of continued data center expansion.

Missouri House Bill 2239 would establish new environmental and operational requirements for artificial intelligence data centers with a capacity of 100 megawatts or higher, applying to facilities constructed or expanded after August 28, 2027, and to existing facilities that increase capacity by 25 percent or more. The bill mandates that covered data centers implement closed-loop water cooling systems that recirculate water in sealed circuits rather than continuously drawing from natural or municipal sources, along with continuous monitoring and emergency protocols to prevent water contamination or thermal pollution. Operators would be required to submit detailed annual environmental and health reports to Missouri's Department of Natural Resources covering water usage and quality, energy consumption, greenhouse gas emissions, waste disposal, air quality monitoring within a five-mile radius, and community health impacts, with all reports made publicly available within 60 days of submission. Non-compliance with the closed-loop system requirement or failure to submit annual reports would result in civil penalties of up to $50,000 per day. The bill currently stands at the referral stage in the House Emerging Issues Committee, and its progression will depend on committee review and votes in both chambers. For Missouri's data center industry, this legislation represents a significant regulatory shift that would impose substantial operational costs and compliance burdens on large AI facilities, potentially affecting the state's competitiveness in attracting new data center investment.

Missouri House Bill 3390 would establish significant restrictions on the construction of hyperscale data centers, defined as facilities requiring at least 25 megawatts of power to operate. Starting August 28, 2026, the bill would prohibit these large data centers from being built on agricultural, conservation, environmental stewardship, mixed-use, and residential land, and would prevent their construction within ten miles of agricultural, recreational, or conservation areas. The legislation also mandates a 500-foot setback around data centers with native Missouri plantings and ornamental barriers, and requires compliance with federal noise control standards for construction projects located near highways or neighboring properties. These provisions would significantly constrain where hyperscale data centers can be sited in Missouri, primarily limiting them to industrial or commercial zones in areas distant from agricultural and recreational lands. The bill is currently referred to the House Emerging Issues Committee, and its restrictive stance on data center development suggests it faces potential industry opposition as Missouri competes with other states to attract tech infrastructure investment. If passed, the legislation would reshape Missouri's data center development landscape by prioritizing environmental and residential protection over the rapid expansion of hyperscale facilities that many states actively recruit.

LB468, introduced in Nebraska's 2025 legislative session, is a comprehensive revenue and taxation bill that would eliminate a sales tax exemption currently available to data centers operating in the state, along with removing the related statutory definition of data centers. The bill addresses multiple tax provisions including changes to inheritance taxes, motor vehicle taxes, documentary stamp taxes, and various other fees and levies across different state statutes. The elimination of the data center sales tax exemption represents a significant policy shift that would increase the tax burden on data center operations and potentially make Nebraska less attractive as a location for new data center development compared to competing states with more favorable tax treatment. This change matters for Nebraska's economic development strategy, as data centers represent substantial capital investment and job creation opportunities, and tax incentives have been a key tool for recruiting such facilities. The bill has been indefinitely postponed as of its latest action, meaning it is unlikely to advance in the current legislative session and may not receive further consideration unless circumstances change. For industry professionals and potential investors in Nebraska's data center sector, the bill's current status suggests that the existing tax exemptions remain in place for now, though the proposal indicates ongoing legislative scrutiny of these incentives.

LB1111 would establish new regulatory requirements and authorities for data centers in Nebraska by requiring public power suppliers to file annual reports detailing data center loads, infrastructure costs, and stranded assets with the Nebraska Power Review Board, while also granting these suppliers explicit power to regulate large data centers (those consuming 20 megawatts or more of electricity). The bill requires that large data centers pay the full cost of infrastructure upgrades needed to serve them and prohibits other utility ratepayers from bearing these costs or assuming financial risk if a data center prematurely shuts down, creating substantial compliance obligations and cost burdens for data center operators. The legislation affects both data center developers seeking to locate in Nebraska and public power suppliers, which range from rural cooperatives to municipal utilities, by shifting infrastructure investment responsibilities entirely to data center customers and away from traditional ratepayers. This matters for data center development in Nebraska because these cost requirements and regulatory authorities could make the state a less attractive location for new data center projects compared to other states with less stringent cost-allocation rules. The bill was referred to the Natural Resources Committee in January 2026 and has been indefinitely postponed, meaning it is unlikely to advance further in the current legislative session and would require reintroduction in a future session to be considered. The indefinite postponement reflects likely opposition from data center industry stakeholders concerned about the regulatory and financial barriers the legislation would create.

LB1131 is a Nebraska bill that would establish a new tax credit program for domestic violence and human trafficking service providers while simultaneously eliminating two existing tax exemptions that have made the state attractive for data center development. Specifically, the bill repeals sections 77-2701.54 and 77-2704.62, which currently provide personal property tax exemptions and sales and use tax exemptions for data centers operating in Nebraska. The legislation creates a refundable tax credit totaling approximately 6.02 million dollars annually to be distributed among qualifying nonprofit organizations, tribal governments, and coalitions that provide services to domestic violence and human trafficking victims, with credits available starting in the 2027 tax year and transferable between taxpayers. For data center operators and the technology industry in Nebraska, the removal of these tax exemptions represents a significant increase in operating costs and tax burden, potentially reducing the state's competitive advantage in attracting new data center investment compared to other states with more favorable tax treatment for such facilities. The bill has been indefinitely postponed as of its latest legislative action, meaning it was removed from consideration in the current session and is unlikely to advance without future reintroduction. This outcome suggests limited current legislative support for the measure, potentially due to concerns about the impact on data center investment and economic development in the state.

SB439 would authorize New Hampshire municipalities to regulate data centers in commercial and industrial zones through a comprehensive set of zoning and design standards. The bill establishes specific requirements for data center facilities, including a 2,640-foot setback from passenger rail stations or high-capacity transit facilities, noise limitations that cannot exceed ambient levels by more than 5 percent within 300 feet of residential areas, mandatory written confirmation from electric utilities that adequate power capacity exists within two years of construction, and a 150-foot setback for all mechanical and electrical equipment from public rights-of-way and residential properties. Additionally, the bill imposes extensive landscaping and architectural design standards, such as 30-foot perimeter buffers with staggered tree rows, architectural variations on building facades over 100 feet long, detached sidewalks with landscaped strips along street frontages, and shaded pedestrian pathways. The bill affects data center developers and operators seeking to establish facilities in New Hampshire, as well as municipalities that would gain regulatory authority over such projects, while residents in commercial and industrial areas would benefit from buffering requirements and design protections. As of May 14, 2026, the bill was laid on the table in the Massachusetts House by Representative Ammon with a vote of 304-11, indicating it has stalled in the legislative process and is unlikely to advance further in its current form.

Assembly Bill 4945 would require New Jersey's Board of Public Utilities to conduct a comprehensive study of data center development's effects on the state within twelve months of the bill's enactment. The study must examine energy consumption, water usage, impacts on the electrical grid and local infrastructure, air quality and noise pollution, land use including forest clearing, electronic waste generation, public health effects, utility rate increases, and energy efficiency practices across the state's data centers. The Board would be required to solicit input from stakeholders and hold at least one public hearing before submitting its findings and policy recommendations to the Governor and Legislature. The bill defines data centers as facilities with more than one megawatt of information technology load that primarily house computing and data storage equipment. Currently in the early stages of the legislative process, the bill was introduced in May 2026 and referred to the Assembly Telecommunications and Utilities Committee, with no immediate restrictions or incentives attached to data center development itself. The study's recommendations could inform future legislative or regulatory action regarding data center impacts on New Jersey's environment, infrastructure, and utility costs.

The "Responsible Data Center Development and Resource Protection Act" would establish the first statewide regulatory framework in New Jersey to govern the siting and environmental impacts of large data centers with peak electrical loads of at least 25 megawatts. Before any developer can submit a municipal site plan application, the bill would require them to prepare a comprehensive "data center resource impact statement" covering electricity demand and infrastructure needs, water consumption and drought planning, wastewater impacts, greenhouse gas emissions, noise, flood risk, traffic, and cumulative environmental effects across the municipality, county, and state. The bill directs the State Planning Commission, Board of Public Utilities, Department of Environmental Protection, and Economic Development Authority to review these impact statements and coordinate their assessments before local approval processes can even begin. The legislation explicitly encourages data center development only in brownfields and industrial corridors that already have appropriate infrastructure, rather than offering incentives for development in other locations. The bill was introduced in the New Jersey Senate on June 4, 2026, and referred to the Senate Community and Urban Affairs Committee, where it currently remains pending. If enacted, the law would substantially delay and complicate data center development in New Jersey by imposing mandatory environmental review and multi-agency coordination requirements at the state level prior to any local municipal approval.

Senate Bill 4401 would require New Jersey's Board of Public Utilities to conduct a comprehensive study on the environmental, infrastructural, and financial impacts of data center development within the state, with findings due within twelve months of the bill's enactment. The study must examine multiple dimensions of data center operations, including energy consumption, water usage, effects on the electric grid, air quality and noise impacts, land use patterns including forest clearing, electronic waste generation, local infrastructure effects, public health concerns, fiscal impacts such as utility rate increases, and energy efficiency metrics. The bill defines data centers as facilities with a primary function of storing, managing, and processing digital data with an information technology load exceeding one megawatt, and requires the Board of Public Utilities to solicit stakeholder input and hold at least one public hearing during the study process. The legislation currently pending in the Senate Environment and Energy Committee represents a fact-finding mechanism rather than a regulatory action, as it imposes no immediate restrictions or incentives on data center development but instead seeks to establish an evidence base for potential future policy decisions. The study's final recommendations will include legislative proposals and regulatory options to address adverse impacts on the environment, infrastructure, and utility rates, providing the state with information needed to develop more targeted data center policies. This bill matters for New Jersey's data center industry because the study findings and resulting recommendations could shape how the state regulates future data center projects and addresses community concerns about their resource consumption and local effects.

Assembly Bill 5224, introduced in New Jersey in June 2026, would require data center developers to provide advance public disclosure of their projects at least 180 days before submitting preliminary site plans for municipal approval. Under this legislation, developers would need to notify local elected officials and the general public through press releases about the project location, estimated costs, any tax incentives involved, and environmental impacts, while also establishing ongoing media engagement, posting physical signage at proposed sites, and providing informational materials in multiple languages including English and Spanish. The bill's stated purpose is to address what the Legislature characterizes as a lack of timely and complete information about data centers' substantial impacts on local communities, utilities, infrastructure, water consumption, electricity demand, and environmental resources, including greenhouse gas emissions and air pollution. The bill specifically targets facilities designed for artificial intelligence computation workloads, defining data centers to include those housing graphics processing units and other specialized processors used for AI operations. Currently, the bill has been referred to the Assembly Science, Innovation and Technology Committee following its introduction, meaning it remains in the early stages of the legislative process. The measure represents a significant procedural hurdle for data center developers seeking to establish operations in New Jersey, as it mandates extensive community notification and engagement obligations well before the formal permitting process begins.

New Jersey's "Responsible Data Center Development and Resource Protection Act" would establish a comprehensive statewide regulatory framework requiring large data center developers to submit detailed resource impact statements to state agencies before they can apply for local zoning approval. The bill defines large load data centers as facilities with peak electrical loads of at least 25 megawatts and would require developers to demonstrate compliance with numerous requirements including alternative electricity generation plans, water conservation and drought contingency strategies, greenhouse gas emissions profiles, cumulative environmental impact analyses, and infrastructure upgrade assessments across municipalities and counties. The legislation is designed to protect utility ratepayers, drinking water supplies, grid reliability, and environmentally sensitive areas by steering data center development toward brownfields and industrial corridors already served by appropriate infrastructure. The bill affects data center developers seeking to build or expand facilities in New Jersey as well as host municipalities that would receive state-level guidance during the review process, while state agencies including the Board of Public Utilities and Department of Environmental Protection would gain oversight authority over projects previously handled purely at the local level. Currently introduced in the New Jersey Assembly and referred to the Science, Innovation and Technology Committee as of June 2026, the bill faces an uncertain path given its substantial procedural requirements and operational restrictions on developers. The measure reflects growing concern among state officials and residents about the rapid expansion of data centers and their strain on electricity infrastructure, water resources, and grid capacity in the region.

The "End Data Center Tax Credits Act" would reshape New Jersey's tax incentive landscape by creating a shared $11.5 billion cap across multiple economic development programs over a nine-year period, including the Next New Jersey Program that provides tax credits for data center projects. Under the bill, data center tax credits would no longer have a dedicated funding stream but would instead compete with credits for historic property reinvestment, brownfields redevelopment, innovation projects, food desert relief, arts incentives, and manufacturing, as well as new programs for energy storage and residential ratepayer relief established by this legislation. This effectively constrains the availability of subsidies for new data center development in the state, as funds allocated to energy storage or residential rate relief would directly reduce what remains available for data center incentives. The bill was introduced in June 2026 with sponsorship from three Assembly members representing districts in northern and central New Jersey and has been substituted by Senate Bill S4390, indicating the legislation is advancing through the legislative process with potential modifications. For data center developers and operators, this represents a significant policy shift away from preferential treatment of the sector and toward broader energy and residential priorities. The practical impact will depend on how the Board of Public Utilities and relevant state agencies prioritize awards across the competing programs within the capped funding pool.

This New Jersey bill requires data center owners and operators to submit detailed water and energy usage reports to the Board of Public Utilities twice per year, beginning within three to six months of the law's effective date depending on when the facility began operations. The reporting requirements include basic facility information, comprehensive energy consumption data (including electricity and fuel usage), water intake volumes and sources, information about on-site power supplies, and utility service agreements. For data centers that receive state financial incentives, the bill imposes additional reporting requirements including performance metrics such as power usage effectiveness, renewable energy factor, water usage effectiveness, and sustainability indicators like equipment intake air temperature and waste heat temperature. The measure affects all current and future data center operators in New Jersey by establishing a standardized data collection mechanism that provides the state with detailed operational information but does not restrict operations, impose new taxes or fees, or create additional permitting requirements. The bill has been substituted by Senate Bill 3379, indicating ongoing legislative refinement, though the core reporting requirement remains a neutral procedural mandate designed to increase government transparency and data collection rather than discourage or encourage data center development. This reporting framework could inform future policymaking regarding water and energy resources in the state while establishing baseline metrics for data center sustainability performance.

New Jersey's Assembly Bill 796, signed into law as P.L.2026, C.32, requires all electric public utilities in the state to develop special tariffs for large data centers consuming at least 100 megawatts of power monthly, with the aim of preventing such facilities from shifting infrastructure and operational costs onto residential and non-data center business ratepayers. Under the law, utilities must submit their tariff proposals to the Board of Public Utilities within 180 days, and the Board may establish data-center-specific rates to implement the rules. The statute mandates strict requirements for large data center customers, including 10-year minimum service commitments backed by financial guarantees, deposits to protect against premature facility closure or reduced usage, and demonstrations that proposed projects are unique and not duplicative of existing facilities. Data centers may obtain relief from these requirements only by committing to operational flexibility or by securing additional energy sources independent of the utility grid. For the data center industry and economic development interests, this law represents a significant regulatory hurdle to large-scale facility development in New Jersey, as it substantially increases financial obligations and administrative scrutiny compared to standard commercial utility arrangements. The measure reflects growing concern among policymakers that the state's rapid expansion of data center capacity could impose disproportionate costs on ordinary utility customers through infrastructure upgrades and capacity investments driven by these high-demand facilities.

The "End Data Center Tax Credits Act," passed as P.L.2026, c.77, restructures New Jersey's tax incentive programs by placing multiple economic development initiatives, including the Next New Jersey Program that covers data center incentives, under a unified $11.5 billion cap spanning nine years rather than allowing separate funding streams. Previously, the Next New Jersey Program operated with its own dedicated tax credit allocation, but this law now requires it to compete for funding alongside other state economic development programs including historic property reinvestment, brownfields redevelopment, innovation projects, food desert relief, and manufacturing incentives. The legislation effectively limits the total tax credits available for data center projects compared to prior law, as the $11.5 billion pool must be distributed across all these competing programs, with an additional $2.5 billion of that total reserved specifically for transformative Aspire Program projects. This change matters significantly for data center developers considering expansion or new facilities in New Jersey, as the reduced tax credit availability may impact project economics and competitiveness relative to other states offering more generous incentives. The bill also authorizes the Board of Public Utilities to issue new tax credits for energy storage projects and establishes temporary income tax credits for certain residential ratepayers, positioning it as part of a broader energy and economic policy shift. With approval already secured through the legislative process, this law is now in effect and will govern data center tax credit awards going forward.

New Jersey's Senate Bill 3379, signed into law as P.L.2026, c.75, requires data center owners and operators to submit detailed water and energy usage reports to the Board of Public Utilities on a semi-annual basis for three years, with initial reports due within three to six months of enactment depending on operational history. The reports must include basic facility information, energy and water consumption data, and for data centers receiving state financial incentives, additional performance metrics such as power usage effectiveness and water usage effectiveness along with sustainability indicators. Data center operators must also notify the BPU at least 60 days before implementing any substantial changes to operations or technologies that would affect the information in their reports. The BPU will publish anonymized and aggregated data from at least five facilities on its website within 30 days of receiving reports, though individual facility submissions remain confidential under state law. After the three-year reporting period concludes, the BPU retains the authority to make these reporting requirements permanent through regulatory adoption, potentially creating an indefinite compliance obligation for the industry. The law's passage reflects state interest in monitoring data center resource consumption as these facilities expand across New Jersey, though it imposes ongoing administrative and operational notification burdens on the industry.

Assembly Bill 5397 would require data center operators in New Jersey to submit a construction phase water usage plan to the Department of Environmental Protection and their local municipality at the same time they apply for local development approval. The plan would need to detail the data center's water sources, estimated consumption and withdrawal during construction, project timeline, and potential impacts on local drinking water supplies and quality. The requirement applies to facilities with at least 25 megawatts of peak electrical load and would take effect 12 months after the bill becomes law. The DEP would have 60 days to review the plan and offer comments, which developers could choose to incorporate, and would be required to publish all plans and comments on its website within 180 days. The bill was introduced on September 10, 2026 and has been referred to the Assembly Telecommunications and Utilities Committee, where it remains under consideration. The measure reflects growing concern in New Jersey about data center water consumption during construction and operational phases, particularly in regions like Cumberland, Gloucester, and Salem counties represented by the bill's sponsor.

Assembly Bill 5396, introduced in New Jersey in September 2026, would require the owners and operators of large data centers to develop and submit water supply emergency contingency plans to the state Department of Environmental Protection and their local municipalities within one year of the law's effective date. The bill applies to facilities with a peak electrical load of at least 25 megawatts and would require these contingency plans to detail basic information about the data center and outline strategies for maintaining operations during water emergencies such as droughts or supply disruptions, including alternative water sources, efficient cooling systems, closed-loop technology, and water conservation measures. The legislation mandates that data centers update their plans whenever changes occur and requires the state to publish these plans on its website within 180 days of receipt. For New Jersey's data center industry, this requirement represents a significant compliance obligation that could increase operational costs and administrative burdens, particularly for new facilities seeking to expand in the state, as planners would need to invest in backup water infrastructure and emergency systems before or shortly after opening. The bill has been referred to the Assembly Telecommunications and Utilities Committee as of its latest action, where it will likely face scrutiny regarding its economic impact on the data center sector and potential trade-offs between water security and industry competitiveness. The legislation reflects growing state concern about water availability and the substantial water demands of large data centers, especially as the state grapples with drought risks and climate change impacts on water supplies.

Assembly Bill 5373, introduced by Assemblyman Balvir Singh in September 2026, would establish mandatory noise control requirements for data center development in New Jersey. The bill requires property owners to commission pre-construction acoustic studies by certified engineers that document baseline sound levels in nearby residential areas, and it mandates that data centers incorporate specific noise abatement features such as acoustic barriers around cooling units, generators, and backup generators. Once operational, data center operators would be required to conduct annual noise compliance studies for three years, with results submitted to the municipality within 60 days, to verify that the facility meets applicable municipal noise ordinances. Site plan approval and all construction permits would be prohibited if applicants fail to meet these requirements, giving municipalities enforcement authority and allowing them to impose fines on operators found in noncompliance. The bill currently sits in the Assembly Science, Innovation and Technology Committee following its referral after introduction. For data center developers and operators in New Jersey, this legislation would add significant regulatory requirements and costs to projects, potentially affecting project timelines and feasibility assessments in the state.

The full text of this bill was not available for this summary, so the following overview is based solely on the bill's title and legislative history. The proposed legislation would impose a six-month moratorium on new approvals, construction, and expansion of artificial intelligence data centers in New Jersey, while also prohibiting state subsidies and tax incentives for such facilities during that period. The bill would additionally establish an Artificial Intelligence Data Center Impact Commission, suggesting an intent to study the effects of AI data center development before allowing new projects to proceed. This measure would directly affect technology companies planning to build or expand AI data centers in the state, as well as municipalities that have approved or are considering such projects. For New Jersey's data center sector and tech industry, the moratorium represents a significant regulatory hurdle that could delay or discourage investment in AI infrastructure within the state. As of now, the bill has been introduced and referred to the Assembly State and Local Government Committee, where it awaits further consideration.

Senate Bill 4304 would prohibit data center developers and their agents from entering into non-disclosure agreements with public authorities or property sellers that conceal details or prevent public review of development plans. Under the bill, any such agreements would be declared unenforceable and against public policy, and applicants would be required to attest during the permitting process that no such agreements were made by any party involved in the real estate transaction. Municipalities and approving agencies would be barred from granting site plan approvals, subdivisions, or other required permits if an applicant violates these provisions. The bill affects the data center development process in New Jersey by requiring greater transparency in how projects are presented to municipal authorities and sellers, potentially addressing concerns that secretive acquisition strategies or confidentiality clauses could limit community and government scrutiny before projects move forward. Currently in its early legislative stages after being reported from the Senate Committee on June 1, 2026, the bill would take effect immediately if enacted. The legislation represents a procedural reform focused on disclosure practices rather than an incentive or restriction on data center development itself.

The full text of this bill was not available for review, so this summary is based on the bill's title and legislative history. According to its title, the bill would require New Jersey's Department of Environmental Protection to study the environmental impacts of data center development in the state and would prohibit construction of new data centers until that study is completed. This legislation would directly affect data center developers and operators seeking to build new facilities in New Jersey, as well as technology companies that rely on data center capacity in the region. The bill reflects growing concerns about whether rapid data center expansion may pose environmental risks, including effects on water usage, energy consumption, and local ecosystems. Currently, the bill has been introduced in the New Jersey Senate and referred to the Senate Environment and Energy Committee, where it remains in the early stages of the legislative process. The moratorium on new construction would effectively halt data center development in the state during the study period, making this a significant measure for the industry and for communities concerned about data center siting.

The full text of this bill was not available at the time of this summary, so the following overview is based on the bill title and its current legislative status. The bill would require data centers operating in New Jersey to submit annual reports to the Department of Environmental Protection (DEP) and would direct the DEP to create a public Data Center Transparency Dashboard to display this information. This legislation would primarily affect data center operators and owners in the state, as well as the DEP, which would need to establish and maintain the new reporting system and public database. The bill appears focused on increasing public visibility into data center operations and their impacts, addressing growing concerns about the industry's environmental footprint, water usage, energy consumption, and other operational metrics. Currently, the bill has been introduced in the Senate and referred to the Senate Environment and Energy Committee, where it is in the early stages of the legislative process. If enacted, this measure could establish a model for data center accountability and transparency that other states may consider, while providing residents and policymakers with data to inform future regulatory decisions about the industry's growth in New Jersey.

Senate Bill 4657, introduced in October 2026 by Senator Joseph P. Cryan of Union County, proposes to amend New Jersey's data center permitting law by revising definitions contained in the Environmental Protection Act of 2020. The bill modifies the definition of "data center" to specify that it encompasses establishments whose primary function is storing, managing, and processing digital data, with associated infrastructure like servers and network equipment, provided the facility has an annual energy demand exceeding one megawatt. The legislation also updates related definitions including "environmental or public health stressors," "overburdened community," and "facility," which are used to determine whether proposed data centers must undergo enhanced environmental review in communities disproportionately burdened by pollution and health risks. Currently referred to the Senate Environment and Energy Committee, the bill represents a clarification of existing regulatory language rather than a substantive change to permitting timelines or approval processes. The measure matters for New Jersey's data center sector because clearer definitions can reduce ambiguity in permit applications and help establish consistent standards for environmental impact assessments, particularly regarding siting in disadvantaged communities. Given the neutral nature of these definitional amendments, the bill's path forward will likely depend on broader legislative priorities around data center regulation and environmental justice in New Jersey.

Assembly Bill 5586 would impose new notification and transparency requirements on data center developers in New Jersey before they submit preliminary site plan applications to local planning boards. Under the proposed legislation, developers would be required to hold at least one public community meeting at least 90 days before submitting their applications, coordinate standardized social media posts with municipalities, send direct mail summaries to property owners within five miles of the proposed site, and provide project information in multiple languages including English and Spanish. The bill also directs the state Department of Community Affairs to establish and maintain a public website portal that aggregates all data center development notices from across the state. The measure specifically targets data centers with peak electrical loads of at least 20 megawatts, reflecting the Legislature's stated concerns about noise pollution, energy consumption, strain on public utilities, and impacts to community character. The bill is currently in its early stages, having been introduced on October 5, 2026, and referred to the Assembly Science, Innovation and Technology Committee, where it faces an uncertain path forward.

Senate Bill 4400 would require New Jersey's Department of Environmental Protection to conduct a comprehensive study evaluating how large-scale data centers use water and what effects that consumption has on the state's drinking water systems, wastewater infrastructure, and environment. The study would examine both historical impacts over the past three to seven years and anticipated future effects from data centers not yet built, while also identifying water reduction strategies that could be implemented at existing or new facilities. The bill defines "large-scale data centers" based on thresholds related to water use, electric demand, physical size, and computing capacity, and grants the DEP authority to require data center operators and water utilities to submit detailed information about water consumption, cooling methods, and conservation practices. The department would have 15 months from the bill's effective date to submit a written report to the Governor and Legislature, which may include recommendations for additional legislation but imposes no immediate restrictions or requirements on data center operations themselves. This approach reflects growing concern among policymakers and residents about data centers' resource demands, particularly in regions like New Jersey that face water stress, though the bill takes an investigative rather than regulatory stance. The bill was referred to the Senate Budget and Appropriations Committee, where its progression will depend on committee review and the legislature's broader priorities regarding data center development and water management.

Assembly Bill 5622, introduced in October 2026 by Assemblyman Chigozie U. Onyema, would amend New Jersey's environmental permitting law to explicitly include data centers within the scope of facilities subject to Department of Environmental Protection (DEP) permit requirements and overburdened community review provisions. Currently, data centers are not specifically defined in P.L.2020, c.92, the statute governing DEP permits for facilities in environmentally stressed areas; this bill adds a definition of "data center" as an establishment whose primary function is storing, managing, and processing digital data with annual energy demand exceeding one megawatt. The amendment would require data centers to obtain DEP permits and comply with existing environmental and public health review requirements, including special considerations for projects proposed in overburdened communities, defined as census block groups with high concentrations of low-income households, minority residents, or limited English proficiency populations. The bill does not streamline or expedite data center permitting, nor does it add new restrictions; rather, it brings data centers into alignment with regulatory requirements already applied to other industrial facilities such as power plants, waste facilities, and pollution sources. The legislation was referred to the Assembly Science, Innovation and Technology Committee following its introduction and remains in committee as of its latest action. Given the neutral character of the amendment and its focus on regulatory clarification rather than substantive policy change, the bill's trajectory will likely depend on broader legislative priorities around data center development and environmental justice in New Jersey.

The full text of this bill was not available for review, so this summary is based on the bill's title and its current legislative status. The proposed legislation would require New Jersey's Department of Environmental Protection to conduct a comprehensive study on the environmental impacts of data center development before any new data centers can be constructed in the state. This measure would effectively pause new data center projects until the study is completed, directly affecting technology companies, real estate developers, and investors planning data center facilities in New Jersey. The moratorium matters significantly for the state's data center industry because it could delay or prevent major investments and infrastructure projects while environmental concerns are being evaluated, potentially shifting development to neighboring states. The bill is currently in its early stages, having been introduced and referred to the Assembly Science, Innovation and Technology Committee, where it will be reviewed before any further action. The outcome of this legislation could substantially reshape New Jersey's approach to balancing economic development in the data center sector against environmental protection priorities.

The full text of this bill was not available for review, so this summary is based on the bill title and its current legislative status. The proposed legislation would require New Jersey data centers to submit annual reports to the Department of Environmental Protection (DEP) and would direct the DEP to create a public Data Center Transparency Dashboard to display this information. The requirement would primarily affect data center operators currently licensed or seeking to operate in New Jersey, while the transparency dashboard would make compliance and operational data accessible to the public, industry stakeholders, and policymakers. The bill represents a data transparency and accountability measure rather than a regulatory restriction or development incentive, which may be significant for jurisdictions seeking to balance economic development with public oversight of data center operations. Currently, the bill has been introduced in the New Jersey Assembly and referred to the Science, Innovation and Technology Committee, where it will be evaluated before any potential floor vote.

Assembly Bill 10141-A, introduced in February 2026 with broad bipartisan sponsorship, would impose a moratorium on new data center permit issuance in New York State and require the Public Service Commission to minimize electricity and gas rate impacts from data center development. The bill's legislative findings emphasize concerns about rapid data center expansion, projecting that electricity consumption from data centers in New York could double household usage statewide, while noting that 56 percent of data center electricity currently comes from fossil fuels with carbon intensity 48 percent higher than the national average. The legislation also cites economic impacts, including analysis suggesting that 70 percent of locations with rising wholesale electricity prices are within 50 miles of significant data center activity, and points to broader environmental concerns including substantial water usage for cooling systems and conversion of agricultural land to industrial use. The bill affects data center operators and developers seeking to expand operations in New York, as well as residential, commercial, and industrial electricity customers potentially facing rate increases from new data center projects, and would also apply these provisions to the Long Island Power Authority. Following its February 2026 introduction, the bill was referred to the Committee on Environmental Conservation, which discharged and amended it before recommitting it for further consideration. Given the substantial number of cosponsors from the Assembly, the bill represents significant legislative momentum for restricting data center development in the state, though its passage prospects in the full legislature and reception from the governor remain unknown.

This New York State bill (S09144A) would establish a moratorium on issuing permits for new data centers and require the Public Service Commission to take steps minimizing how new data centers impact electricity and gas rates for residential, commercial, and industrial customers. The bill's legislative findings emphasize concerns about data center growth, citing projections that data center electricity consumption in New York could nearly double household usage while noting that 56 percent of data center power comes from fossil fuels, creating conflicts with the state's climate goals. The legislation also raises concerns about water usage for cooling, land conversion from agricultural to industrial use, and impacts on consumer electricity rates, referencing a Bloomberg analysis finding that 70 percent of locations with year-over-year electricity price increases were within 50 miles of significant data center activity. The bill would amend the Environmental Conservation Law, Public Service Law, and Public Authorities Law, with provisions applying to the Long Island Power Authority as well. As of its latest action in February 2026, the bill was being considered by the Committee on Environmental Conservation after being amended and reprinted. The bill currently has broad co-sponsorship in the State Senate, suggesting substantive legislative support for restricting data center development in New York.

New York Senate Bill S10487, known as the "Data Center Water Stewardship and Reuse Act," would establish mandatory water recycling and conservation standards for large-capacity data centers in the state, defined as facilities with at least ten megawatts of electrical demand or those using more than five million gallons of potable water annually. The bill creates a comprehensive regulatory framework requiring affected facilities to implement closed-loop cooling systems, use non-potable recycled water where feasible, and comply with new permitting, reporting, and transparency requirements administered by the Department of Environmental Conservation. The legislation aims to reduce data centers' reliance on public water supplies by increasing their use of reclaimed and recycled water, addressing concerns about water resource strain as computing facilities expand their operations in New York. The bill includes provisions for incentives and technical assistance to help facilities meet standards, alongside enforcement mechanisms and penalties for non-compliance, and establishes a dedicated data center water stewardship fund to support these efforts. The bill was referred to the Committee on Environmental Conservation in May 2026, where it currently awaits further action. Industry observers note that while the bill's water conservation goals align with environmental policy, the mandatory compliance requirements and permitting obligations represent significant regulatory burdens that could affect the economics and feasibility of new data center development in the state.

This New York bill would prohibit and void nondisclosure agreements (NDAs) and confidentiality provisions that prevent discussion of environmental, health, infrastructure, and operational impacts associated with large-scale energy development projects, including data centers, AI computing facilities, cryptocurrency mining operations, solar and wind projects, and battery storage systems. The legislation applies broadly to any individual, resident, landowner, municipal official, consultant, contractor, or affected party, protecting their right to speak publicly, participate in hearings, communicate with media, and submit comments to government agencies about such projects. Data center operators and other project developers would be prohibited from using NDAs to restrict disclosure of information about topics such as water usage, electrical demand, utility ratepayer impacts, tax abatements, noise impacts, and public health concerns, though the bill includes a carve-out for legitimate trade secrets, cybersecurity information, and competitively sensitive business data unrelated to project impacts. Violations would subject violators to civil penalties ranging from $2,500 for a first offense to $10,000 for willful violations, with enforcement available through civil action by individuals or the state attorney general. The bill also requires public disclosure of all records, reports, agreements, and contracts involving utilities and public subsidies related to such projects. As of the latest legislative action, the bill has been referred to the Committee on Judiciary, where its prospects will depend on committee deliberation and broader legislative support.

This New York bill would require hyperscale data centers (those with 20 megawatts or more of peak demand) that are newly built or significantly expanded to fund community benefit programs in their host municipalities. Under the legislation, data center operators would need to either provide discounts or credits on residential electric utility bills for local customers or install eligible residential technologies such as heat pumps, solar panels, or battery storage systems in the community. The Public Service Commission would have 90 days to establish a formal proceeding to determine the specific funding amounts and implementation details, with consideration given to factors including facility demand, the number of residential customers affected, and prioritization of low and moderate-income households. The bill affects data center development by imposing mandatory financial obligations on operators seeking to expand or establish facilities in New York, potentially increasing development costs and regulatory requirements. The bill has been delivered to the Senate as of its latest action, indicating it has cleared the Assembly and is now in the upper chamber for consideration. This legislation reflects growing tension between the data center industry's expansion and communities' demands for tangible benefits from large industrial facilities operating in their areas.

The Homegrown Energy Act, introduced in the New York State Senate as bill S10546, would require new data centers and existing facilities undergoing major expansions to fund residential electrification programs or utility bill credits in their host communities. The bill defines covered data centers as facilities with peak electricity demand of at least twenty megawatts used for computing, data processing, web hosting, and related services. Under the legislation, data centers would be required to either provide discounts or credits on residential electric utility bills or fund installation of eligible residential technologies such as heat pumps, heat pump water heaters, rooftop solar systems, and battery storage, with priority given to low- and moderate-income households and disadvantaged communities. The Public Service Commission would establish the specific funding amounts and implementation mechanisms within ninety days of the bill's enactment, and the Long Island Power Authority would develop a parallel program for its service territory. The bill is currently referred to the Committee on Energy and Telecommunications, indicating it is in early legislative stages. For data center developers and operators in New York, this legislation would represent a significant ongoing cost obligation tied to facility size and electricity consumption, potentially affecting the economics of data center expansion in the state.

The Stop Subsidizing Data Centers Act would prohibit New York from allocating economic development power to data center operations and restrict industrial development agency financial assistance to such projects. The bill defines data centers as facilities capable of using 20 megawatts or more of electricity that are primarily engaged in data processing, storage, or related services, and it would require companies that receive public subsidies to maintain specified job levels within five years or return the financial assistance to the state. The legislation also designates the Department of Environmental Conservation as the mandatory lead agency for environmental reviews of any action consuming over 20 megawatts and requires environmental quality reviews for projects within 10 miles of federally recognized Indian nation territories. The bill directly impacts data center developers and operators seeking to locate or expand facilities in New York by eliminating access to certain forms of public economic incentives that have traditionally been used to attract such projects. As of the latest action, the bill has been through multiple committee amendments and recommittals to the Committee on Environmental Conservation, indicating ongoing deliberation within the legislative process. The legislation reflects growing concern among some New York policymakers about the costs and environmental impacts of subsidizing data center development in the state.

The Stop Subsidizing Data Centers Act would prohibit New York State from providing economic development subsidies and power allocations to data center projects, effectively ending or restricting access to programs like Recharge NY power that have previously supported such facilities. The bill defines data centers broadly to include facilities capable of using 20 megawatts of electricity or more that are engaged in data processing, storage, transport, web hosting, or related services. Beyond the subsidy prohibition, the legislation would require data center projects consuming over 20 megawatts to undergo environmental quality review with the Department of Environmental Conservation as the mandatory lead agency, and would impose additional environmental review requirements for any project located within 10 miles of federally recognized Indian nation territory. The bill also includes job maintenance requirements with clawback provisions, meaning data centers would be required to return any industrial development agency financial assistance if they fail to maintain specified employment levels within five years of project completion. As of the latest legislative action (print number 9182B, dated February 11, 2026), the bill has been introduced in the Senate, discharged from committee with amendments, and recommitted to the Committee on Energy and Telecommunications, indicating it remains under active consideration. The legislation represents a significant policy shift away from economic incentives for data center development and toward stricter environmental and employment accountability measures.

The "Accountability of Costs for Data Centers Act," introduced in the New York State Senate in October 2025, would require electric utilities, gas corporations, and municipalities to create separate rate classifications specifically for large energy use facilities, primarily data centers, preventing these facilities from sharing infrastructure and operational costs with other customer classes. Under the bill, data centers would be required to bear the full costs of any infrastructure upgrades, improvements, and operational expenses needed to serve them, as well as all rate-of-return recovery costs attributed to their operations, rather than distributing these expenses across all ratepayers. The legislation also directs the Public Service Commission to establish an adjustment mechanism ensuring that data centers pay all costs associated with increases in commodity prices and transmission service fees occurring after the law's effective date. Additionally, the bill authorizes the Department of Public Service to develop financial surety requirements between utilities and data center operators, creating a regulatory framework that isolates the fiscal impact of these high-energy facilities on the broader utility customer base. The bill currently stands at print number 8540A and has been referred to the Senate Committee on Energy and Telecommunications, indicating it remains in the early stages of the legislative process. For data center developers and operators, this legislation would substantially increase their direct operational costs in New York by eliminating cost-sharing mechanisms that traditionally spread certain utility expenses across all customer classes, potentially making the state a less attractive location for new data center projects.

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 mandates annual disclosure reporting on energy consumption, water use, and greenhouse gas emissions from data center operators, while prohibiting utilities from offering incentives to data centers that sign fossil fuel power purchase agreements. These requirements respond to legislative findings that data centers significantly consume energy and water, generate substantial greenhouse gas emissions, and impede the state's ability to meet climate goals established under the Climate Leadership and Community Protection Act. The bill affects data center operators and owners across New York, as well as utilities that currently structure power agreements with these facilities. As of March 2025, the bill has progressed through committee review in both the Energy and Telecommunications and Environmental Conservation committees with amendments, indicating active legislative consideration. The regulatory approach targets operational sustainability without providing offsetting incentives or streamlined permitting pathways, which industry observers note could increase compliance costs and operational expenses for data center facilities in the state.

New York's "Accountability of Costs for Data Centers Act" would require electric utilities, gas companies, and municipalities to create a separate service classification for large energy use facilities (primarily data centers) and assign all infrastructure costs, upgrades, and operational expenses directly attributable to serving these facilities entirely to that classification, preventing cost-sharing with other customers. The bill mandates that utilities file these new classifications with the Public Service Commission for approval and update existing service classifications to exclude large energy users, ensuring that data centers bear the full financial burden of any system improvements or operational costs needed to serve them. This measure affects data center operators and developers looking to expand or build new facilities in New York, as it will substantially increase their utility costs by eliminating cost-sharing mechanisms that currently distribute infrastructure expenses across multiple customer classes. The bill matters for data center development in the state because it makes projects more expensive to operate and potentially less attractive for investment compared to other jurisdictions, while it benefits other electricity and gas customers by protecting them from subsidizing data center infrastructure. As of the latest action on the third reading amendment (9039B), the bill has been reported favorably from committee and is advancing through the legislative process with broad bipartisan sponsorship, suggesting meaningful momentum toward passage. The amendment process indicates the bill is being refined but remains substantively focused on its core mechanism of cost separation and attribution to data center operators.

The New York Sustainable Data Centers Act would establish regulatory requirements for data centers consuming 20 megawatts or more of electricity, requiring them to submit annual energy consumption disclosure reports and prohibiting certain incentives tied to fossil fuel power purchase agreements with utilities. The legislation reflects legislative concern that data centers significantly strain New York's energy infrastructure and water resources while generating substantial greenhouse gas emissions that undermine the state's climate goals under the Climate Leadership and Community Protection Act. The bill would apply to data center operators across the state regardless of whether facilities are single or multi-occupant sites, creating ongoing compliance obligations around energy efficiency, renewable energy use, and emissions reporting. As of September 2025, the bill has moved through multiple committee reviews in the Assembly Energy Committee with successive amendments and reprintings, indicating ongoing refinement of its provisions. The legislation represents a regulatory approach focused on limiting data center expansion and operational impacts rather than incentivizing industry development, which aligns with growing concerns among environmental advocates and affected communities about the environmental costs of rapid data center growth in the region. Data center operators and industry stakeholders would likely face increased compliance costs and operational constraints if the bill advances to passage.

The Responsible Data Center Development Act would impose a one-year moratorium on permits for large data centers in New York, defined as facilities with a peak electricity demand of 20 megawatts or more, while exempting modifications to existing facilities and data centers operated by public research institutions. Beyond the moratorium, the legislation would require utility companies to establish separate service classifications for large data centers, set energy efficiency standards for such facilities, mandate environmental impact reports, establish labor standards for data center construction, and ensure host communities receive benefits from new development. The bill affects data center operators seeking to expand or build new large facilities in New York, as well as technology companies, utility providers, and local communities in areas where data centers might be sited. The moratorium and associated requirements represent significant regulatory hurdles that could slow or redirect data center investment in the state during a period when demand for computing infrastructure is growing nationally. The bill currently has the status of being returned to the Assembly after committee consideration, suggesting it remains under legislative review with an uncertain path to final passage. The broad coalition of cosponsors indicates substantial support among Assembly members for more stringent oversight of data center development in New York.

The Responsible Data Center Development Act, introduced in the New York State Senate in June 2026, would establish a one-year moratorium on permits for large data centers (those with a peak demand of 20 megawatts or more) while exempting facilities already under construction and modifications to existing operations. Beyond the moratorium, the bill mandates that utilities create independent service classifications for large data centers, establishes energy efficiency standards for the facilities, requires developers to provide benefits to host communities, and sets labor standards for data center construction. The legislation affects data center developers and operators seeking to build new facilities in New York, as well as local communities and utilities that would be impacted by new data center development. The bill has been substituted by Assembly bill A11560, indicating the legislation is advancing through the legislative process, though the substitution suggests modifications may have been made to the original proposal. For New York's data center industry and communities concerned about rapid expansion of computing infrastructure, this measure represents a significant regulatory shift that would slow new large-scale development while subjecting future projects to stricter environmental, labor, and community benefit requirements.

This New York bill would prohibit municipal governments and data center operators from signing nondisclosure agreements or other contracts designed to hide details about data center development from the public or block public review of such projects. The measure creates parallel restrictions on both municipalities (through amendments to General Municipal Law) and data center companies themselves (through new provisions in General Business Law), with a carve-out for agreements that solely protect legitimate trade secrets. The bill defines data centers broadly to include facilities primarily focused on digital data storage, processing, and management, along with their supporting infrastructure like servers, telecommunications systems, and environmental controls. Currently referred to the Senate Rules Committee, the bill takes a procedural approach to transparency rather than directly encouraging or discouraging data center development, making it relevant to ongoing debates about community input in data center siting decisions. For residents and local officials, the bill would ensure greater access to information about proposed data center projects in their areas, while data center developers would face constraints on confidentiality agreements with municipalities but could still protect genuine trade secrets. The timing and ultimate passage of this legislation remains uncertain given its early committee stage.

North Carolina's proposed Ratepayer and Resource Protection Act would impose new regulatory requirements and cost responsibilities on large data centers, defined as facilities with peak electricity demand of 40 megawatts or greater or annual water consumption exceeding one billion liters. The bill would require data center operators to obtain certificates of operation from the state Public Utilities Commission before construction, submit detailed preconstruction disclosures about energy and water usage, generate a portion of their electricity on-site from clean energy sources, and pay electric rates based on the full marginal cost of service rather than standard utility rates. Data centers would also bear full responsibility for infrastructure costs needed to serve their facilities and would face limits on state and local tax incentives and economic development benefits. The legislation's underlying rationale is to prevent data center operators from shifting extraordinary infrastructure and resource costs to residential customers, small businesses, and local governments through higher utility rates. Currently at first reading in the House, the bill reflects growing concern among policymakers that rapid data center expansion strains public utility systems without proportionate public benefit. Industry professionals and economic developers may view these requirements as significant barriers to data center investment in the state, while consumer advocates and environmental groups may see them as necessary protections for ratepayers and water resources.

Senate Bill 844, the Affordable Energy Omnibus, would establish a new regulatory framework for large-load facilities in North Carolina, specifically targeting data centers with peak electricity demand of 50 megawatts or greater. The bill requires such facilities to obtain a certificate of operation from the North Carolina Utilities Commission before construction or operation can begin, with applicants required to demonstrate financial capability, compliance with cost-allocation rules, completion of environmental impact studies, and implementation of noise mitigation measures. A particularly significant requirement for data center projects is that large-load data centers must obtain approval through a local referendum in the county or municipality where they would be located, giving residents direct input on whether such facilities can proceed. The legislation also mandates cost segregation so that other utility ratepayers are shielded from bearing any increased costs associated with serving data centers, and it grants the Commission authority to approve tiered tariff schedules for large-load facilities. Currently in its early stages with a first reading passage, the bill reflects growing state concern about the infrastructure and cost impacts of large energy-consuming facilities on residential consumers and the broader electric grid. For data center developers, the bill would represent a substantial increase in permitting complexity, timeline, and local political risk compared to current North Carolina practice.

House Bill 1180 would establish new regulatory requirements for large data centers in North Carolina by mandating that electric utilities file tariffs with the state Utilities Commission that impose substantial operational and financial obligations on facilities with projected power demands exceeding 20 megawatts. The bill requires data centers to commit to minimum 10-year service contracts, pay for at least 85 percent of their requested maximum electricity capacity regardless of actual usage, and provide financial assurance such as surety bonds to protect other utility customers from bearing costs if the data center reduces operations or closes early. Additionally, the legislation repeals certain existing tax provisions related to data centers, effective January 2027, while the new tariff requirements take effect January 2028 after utilities submit their proposals to regulators. The bill is currently at first reading in the North Carolina House and would significantly increase the costs and contractual restrictions associated with data center development in the state by requiring data centers to fully fund all infrastructure investments and operational expenses attributable to serving their facilities while shielding residential and other commercial ratepayers from those costs. Industry observers view these provisions as potentially deterring new data center investments in North Carolina by making such projects more expensive and operationally inflexible compared to other states with less restrictive utility frameworks.

Senate Bill 1026, titled the Power Bill Protection/Large Load Tariff, would establish new contractual and financial requirements for large electricity customers in North Carolina, specifically those with peak demand of 50 megawatts or higher, a category that includes major data centers. The bill would require utilities to implement standardized tariffs imposing mandatory 20-year minimum service contracts, "take or pay" billing provisions that obligate customers to pay for a percentage of their contracted demand regardless of actual usage, and full upfront payments for all transmission and distribution infrastructure improvements needed to serve the facility. Additionally, the legislation would permit utilities to charge exit fees if customers terminate service early, reduce their load, or downsize operations, and would require customers to provide financial assurances and allow utilities access to confidential business information to verify load projections before infrastructure investment. For the data center industry, which typically values operational flexibility and cost predictability to manage capital investments and respond to market changes, these requirements would substantially increase financial commitments, reduce adaptability, and create significant barriers to entry or expansion in the state. The bill was withdrawn from committee in its most recent legislative action, suggesting it did not advance through the legislative process, though its withdrawal does not preclude reintroduction in future sessions.

House Bill 1213 would repeal North Carolina's sales and use tax exemptions for data centers by striking multiple provisions from the state's tax code that currently provide these incentives. The bill targets specific exemptions under sections of the General Statutes governing sales and use taxes, eliminating preferential treatment that data center operators have previously enjoyed when purchasing equipment and materials. If enacted, the legislation would increase the tax burden on data center development and operations in North Carolina beginning July 1, 2026, affecting any sales of taxable items to data center projects occurring on or after that effective date. The bill has advanced through the legislative process, most recently receiving a favorable committee substitute recommendation, indicating committee support for the measure in some form. For the data center industry, this represents a significant policy shift that could reduce the financial incentives that have attracted data center investment to the state, potentially affecting the competitiveness of North Carolina compared to other states that maintain such tax breaks. Policy observers and industry stakeholders view the measure as part of a broader effort to increase state revenue from large commercial enterprises and reduce the public cost of attracting data center facilities.

Senate Bill No. 2406 would prohibit North Dakota state and local government agencies from entering nondisclosure agreements with data center or industrial project developers that restrict public access to information about projects, including details about location, energy use, water consumption, and environmental impacts. The bill defines nondisclosure agreements broadly to include any contractual term that prevents agencies from discussing or disclosing project information, requires advance approval from developers before releasing information, or designates project details as confidential. If a developer violates the prohibition by entering such an agreement, agencies could deny or revoke permits, licenses, tax incentives, and other authorizations for the project, and any nondisclosure agreement entered in violation would be void and unenforceable. Developers would be required to declare under penalty of perjury that they have not violated the nondisclosure restrictions when applying for agency approvals, with violations potentially resulting in suspension or revocation of permits. Agencies that violate the law could face civil penalties up to one thousand dollars per violation, enforceable by the state attorney general or county state's attorney. The bill failed on its second reading in the North Dakota Senate in March 2024 with 15 votes in favor and 32 opposed, effectively ending its consideration for the current legislative session.

House Bill 957 would amend Ohio's tax code to prohibit the state's tax credit authority from granting new sales tax exemptions for data center equipment purchases, effectively ending a longstanding incentive program that has attracted major computing facilities to the state. Currently, Ohio law allows the tax credit authority to enter into agreements with companies proposing large capital investment projects at data centers, exempting them from sales and use taxes on computer equipment, cooling systems, electrical infrastructure, and construction materials incorporated into the facilities. The bill would halt this authority prospectively, preventing any new exemption agreements from being approved while potentially leaving existing agreements in place. The measure would primarily affect major technology companies, cloud computing providers, and other businesses planning new or expanded data center operations in Ohio, who have previously relied on these tax incentives to offset significant equipment and infrastructure costs. For the broader jurisdiction, eliminating these exemptions could reduce Ohio's competitiveness for data center investment compared to other states with similar incentive programs, though it would also increase state and local sales tax revenue from data center projects. The bill was introduced by Representative Rader and cosponsored by eleven other representatives and is currently referred to committee, where its prospects will depend on how legislators weigh economic development considerations against revenue concerns.

House Bill 646 would establish a Data Center Study Commission within Ohio's Department of Development to conduct a comprehensive examination of data center development across the state. The commission would consist of thirteen members appointed by the Governor, legislative leaders, and minority leaders, tasked with investigating eight specific areas of concern including environmental impact, effects on the electrical grid and utility rates, water usage, noise and light pollution, economic effects, farmland impacts, national security considerations, and reports of foreign propaganda opposing data centers. The commission would hold at least four public meetings within six months, including sessions for public testimony and expert testimony, before submitting its findings and legislative recommendations to state leadership. The bill declares this initiative an emergency measure, citing rapid data center proliferation in Ohio without an established regulatory framework, which the legislation characterizes as creating uncertainty for both local communities and developers. The bill is currently recommitted in the legislature, meaning it has been sent back to committee for further consideration or revision. This study commission represents a neutral approach to a growing policy challenge, gathering information rather than immediately imposing new regulations or incentives on data center operators.

The Data Center Accountability and Citizen Protection Act, introduced in Ohio's House of Representatives, would establish new disclosure and transparency requirements for data centers seeking economic development assistance from the state or local governments. The bill requires applicants to disclose any outstanding liabilities to the state or political subdivisions and to authorize inspection of their personal or corporate financial statements, tax records, and similar confidential information. False statements or failures to provide required information would result in ineligibility for the requested assistance, ineligibility for future economic development assistance, and mandatory repayment of any funds already received. A significant provision removes confidentiality protections for development and supply agreements related to data centers and associated power generating facilities, making such agreements subject to public disclosure requirements that would not apply to other industries receiving similar economic development assistance. The bill declares an emergency, suggesting sponsors view the matter as urgent, though it currently remains in the introductory stage with no further legislative action reported. The measure appears designed to increase public oversight of data center projects and public investment in them, though this could make Ohio a less attractive location for data center development compared to states with less restrictive disclosure requirements.

House Bill 999, introduced in Ohio's legislature, would prohibit all local tax exemptions and incentives for data centers by prohibiting political subdivisions (townships, cities, and counties) from authorizing any such tax breaks going forward and voiding any existing exemptions already in place. The bill defines data centers broadly to include facilities used primarily for digital information services, data storage and processing, computer systems operation, and virtual currency mining across one or more connected properties. The legislation would eliminate access to a wide range of existing tax incentive programs that Ohio communities currently use to attract data center investments, including enterprise zone programs, innovation districts, and various property tax exemption mechanisms. This change would significantly increase the tax burden on data center operators and developers in Ohio, potentially making the state less competitive for attracting new data center projects compared to neighboring states with more favorable tax treatment. The bill currently stands at the introduction stage with seven bipartisan cosponsors, though its path to passage remains unclear. For Ohio's data center industry, local governments, and communities seeking economic development through data center recruitment, this legislation represents a major policy shift that would remove a key tool from the state's economic development toolkit.

House Bill 3621 would establish the Oklahoma State Data Center as a new entity within the Legislative Service Bureau, designating it as the primary center for applied population research and the official liaison with the U.S. Census Bureau for the state. The center would assume responsibility for preparing and maintaining population statistics, providing demographic data to state agencies and legislators, coordinating Oklahoma's participation in federal Census programs, and overseeing activities related to reapportionment and redistricting. Despite its name, this legislation creates an administrative and research function focused on census coordination and demographic analysis rather than addressing commercial data center facilities or infrastructure. The bill does not contain provisions affecting data center development, business incentives, tax policies, or regulations relevant to the technology or telecommunications industries. Currently, the bill has been referred to the House Appropriations Committee, where it will likely face budget considerations given the ongoing administrative costs associated with census coordination and staffing requirements. The effective date is set for November 1, 2026, providing time for the Legislative Service Bureau to establish the center's operations before the 2030 Census activities commence.

House Bill 3620 establishes the 2030 Census Complete Count Committee, a 16-member advisory body tasked with developing and implementing a comprehensive outreach strategy to ensure a full population count for Oklahoma in the 2030 Decennial Census. The committee will include four legislative members representing both majority and minority parties in the state legislature, six members from state and local governments appointed by the Governor and legislative leaders, three members from nonprofit and private organizations, and three representatives from ethnic or language minority groups. The committee's duties include setting annual goals for census participation, designing multilingual and multimedia campaigns, establishing partnerships with community organizations and schools, increasing self-response rates, and making recommendations to the Legislature and Governor on reaching a full count. While the bill title references the State Data Center, which is housed within the Legislative Services Bureau, the bill itself has no direct connection to commercial data center development or operations in Oklahoma and therefore carries no regulatory implications for that industry. The bill was referred to the Appropriations Committee during the 2026 legislative session, indicating it remains in early stages of consideration. For residents and industry professionals, this legislation is notable primarily for its procedural and organizational scope rather than for any impact on data infrastructure or technology sector development in the state.

Senate Bill 1488 would establish a moratorium on constructing new data centers in Oklahoma that are designed to operate at 100 megawatts or greater capacity, suspending all such development until November 1, 2029. During this roughly three-and-a-half-year pause, the Oklahoma Corporation Commission would be required to conduct a comprehensive study examining the potential impacts of data centers on the state's water resources including aquifers and streams, utility rates, property values within a three-mile radius of proposed facilities, and other areas the Commission deems relevant. The bill also directs the Commission to study ideal data center locations from a security perspective and to develop recommendations on regulating data centers to protect the state's electric grid, water supply, and environment, as well as suggestions for sourcing data center components to safeguard citizen privacy and security. The Corporation Commission would submit its findings and recommendations to the legislature electronically, and would be authorized to create rules to implement the moratorium provisions. Currently sponsored by Senator Sacchieri and coauthored by Representative Gann, the bill represents a significant restriction on data center development in a state that has attracted growing interest from the technology and energy sectors seeking locations for large-scale computing facilities. If enacted, this legislation would effectively pause Oklahoma's data center expansion while policymakers evaluate environmental, infrastructure, and security considerations before deciding whether and how to allow future projects.

House Bill 2992, approved by Oklahoma's governor on May 11, 2026, officially establishes the "Data Center Consumer Ratepayer Protection Act of 2026" and will take effect on November 1, 2026. The bill excerpt provided contains only the legislation's enacting clause and effective date, with no substantive provisions detailing what specific protections or regulatory requirements the act imposes on data centers or how it affects utility ratepayers. Without access to the full bill text, it is unclear whether the legislation implements rate protections for consumers, cost-sharing requirements for data center operators, grid reliability standards, or other regulatory measures that would shape data center development in Oklahoma. The bill's designation as a "ratepayer protection" act suggests an intent to address concerns about how data center operations and energy consumption may impact utility costs for residential and business customers. Industry professionals and policymakers will need to review the complete legislation once it becomes effective to understand its full implications for data center projects and the Oklahoma utility market. The emergency designation and noncodification status indicate this may be temporary legislation or a placeholder framework pending further regulatory development.

Pennsylvania House Bill 2150, known as the Data Center Energy and Water Reporting Act, 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 beginning July 1, 2027. The mandatory reports must document total energy consumption by source and month, water consumption and sources, peak load energy usage, and measures undertaken to improve efficiency, generate renewable electricity, recover waste heat, and protect the environment. Data centers would also need to provide projections for the following year's energy and water demand, with the Department of Environmental Protection subsequently publishing consolidated annual reports on statewide data center consumption trends and environmental impacts to be shared with the Governor and relevant legislative committees. The bill currently has been referred to the Environmental Resources and Energy Committee in the House and represents a regulatory approach focused on transparency and oversight rather than incentive-based compliance. Industry analysts have characterized this as imposing significant administrative burden through detailed compliance obligations without offsetting benefits or streamlined pathways for regulated entities. The legislation's trajectory will depend on committee deliberations and broader policy debates about data center development, energy consumption, and environmental protection in Pennsylvania.

Pennsylvania House Bill 2151 would establish a new state-level model zoning ordinance to help municipalities across the commonwealth regulate data center development more consistently and efficiently. The bill directs Pennsylvania's Center for Local Government Services (or Local Government Commission, as amended) to develop and publish a comprehensive model ordinance within nine months that includes standards for data center placement by zoning district, dimensional requirements, setbacks from residential areas, visual screening methods, water and electrical infrastructure documentation, noise limits, emergency response planning, and community benefits agreements emphasizing local workforce participation. The model ordinance would be optional for municipalities to adopt, offering them technical assistance and guidance rather than imposing mandatory statewide requirements, which provides flexibility while establishing best practices for addressing environmental, infrastructure, and community concerns associated with data center facilities. The legislation reflects growing interest in data center development as an economic opportunity for Pennsylvania communities while attempting to streamline the regulatory process that municipalities currently navigate individually through their own zoning codes. The bill has advanced through the House Committee on Appropriations as of April 2026 and is currently under consideration by the House Local Government Committee, indicating ongoing legislative progress on this issue. For industry professionals and residents, this measure matters because it could accelerate data center projects by reducing regulatory uncertainty and providing municipalities with vetted guidance on addressing legitimate community impacts related to water use, power demands, noise, and local employment opportunities.

Senate Bill 1297 amends Pennsylvania's Tax Reform Code of 1971 to impose new environmental and energy requirements on data centers seeking to qualify for the Computer Data Center Equipment Incentive Program's tax benefits. Beginning January 1, 2030, eligible data centers must source 100 percent of their annual electricity from Tier I renewable energy sources and obtain ISO 14001 environmental management certification plus at least two additional green building certifications from a specified list including LEED, BREEAM, Energy Star, and others. The bill affects current and prospective data center operators in Pennsylvania by substantially restricting access to existing tax incentives, as facilities built or certified before the 2030 deadline would face these mandatory sustainability benchmarks to maintain or obtain tax credit eligibility. For data center development in the state, the legislation represents a significant policy shift that prioritizes environmental performance over economic incentives, potentially deterring projects that cannot meet the renewable energy and certification requirements or making such projects more costly to develop. The bill was referred to the Finance Committee on April 23, 2026, and has no additional legislative action recorded beyond that referral. Industry observers and policymakers will likely debate whether these requirements promote Pennsylvania's environmental goals or discourage data center investment in the state compared to neighboring jurisdictions with less stringent incentive programs.

House Bill 2246 would establish new regulatory requirements for data centers in Pennsylvania by creating a special category called "covered data centers" subject to enhanced oversight of their water use and withdrawals. Under the bill, data center developers would be required to notify the Department of Environmental Protection before beginning construction and provide detailed information about projected water consumption, water sources, and potential impacts on existing water users and public water supplies. The department would gain authority to require aquifer testing, impose additional permit conditions, deny permits if adverse impacts to water users or resources are foreseeable, and coordinate with multiple governmental bodies including river basin commissions and municipalities before approving projects. The bill emphasizes water conservation measures such as recycling systems, reclaimed water use, and closed-loop technologies that data centers would need to consider during the permit review process. Currently referred to the Environmental Resources and Energy Committee, the legislation reflects growing concerns about the water demands of large-scale data center operations and their potential effects on Pennsylvania's water resources and existing users. The substantial new regulatory framework would likely increase permitting timelines and compliance costs for data center development in the state.

Pennsylvania House Bill 2516 would establish a comprehensive regulatory framework for commercial data centers by amending the state's Municipalities Planning Code to define these facilities, require municipalities to address them in comprehensive plans, and set minimum zoning standards for their development. The bill defines a commercial data center as a facility with peak demand of 25 megawatts or greater that houses equipment for processing, storing, and transmitting data, and would require municipalities choosing to permit such facilities to include standards addressing setbacks from residential areas, noise and lighting mitigation, water supply and management, emergency response, and site decommissioning. Importantly, the legislation provides protections for agricultural land by prohibiting data centers from being located within agricultural security areas or on land subject to agricultural conservation easements, and requires applicants to document adequate infrastructure and mitigation measures for water resources, particularly where projects adjoin active agricultural land. The bill establishes a 2,500-foot minimum setback requirement between data center buildings and residential uses unless municipalities adopt more restrictive standards, and allows municipalities to approve data centers as conditional uses or special exceptions rather than as-of-right developments. Currently referred to the House Committee on Local Government as of May 2026, the bill reflects a pro-development approach that aims to facilitate data center investment in Pennsylvania while incorporating operational safeguards and agricultural protections. The legislation matters for Pennsylvania's economic development strategy because it removes regulatory uncertainty that has hindered data center siting decisions and could position the state to attract major technology and cloud computing investments.

Pennsylvania House Bill 2515, the Commercial Data Center Transparency Act, would require data center developers to disclose their projects during permit applications across multiple state agencies and to provide detailed information about water usage, energy consumption, and noise impacts to state regulators and local municipalities. The bill applies to commercial data centers with a peak demand of 25 megawatts or greater, and imposes stricter requirements on projects that use more than 100,000 gallons of water per day or have consumptive water use of 20,000 gallons per day or more, requiring applicants to submit water source information, usage projections, and water conservation measures to the Department of Environmental Protection and affected counties and municipalities. Violations of the disclosure requirements or false statements in applications would subject applicants to civil penalties enforced by the Office of Attorney General, the Department of Environmental Protection, and the Department of Transportation. The bill matters for Pennsylvania's data center industry because it creates significant new regulatory compliance obligations that could slow project timelines, increase development costs, and require applicants to navigate disclosure requirements across multiple permitting authorities before construction can proceed. The legislation was introduced in May 2026 and referred to the House Committee on Energy, where its fate depends on committee review and potential amendments. Given the bill's mandatory requirements and penalties without corresponding incentive mechanisms or streamlined approval pathways, it faces an uncertain path forward as the industry and legislative stakeholders debate whether transparency requirements are necessary consumer protections or counterproductive barriers to data center development in the state.

Pennsylvania Senate Bill 1323, introduced in May 2026, establishes comprehensive regulatory requirements for commercial data centers (facilities with peak demand of 25 megawatts or greater) operating in the state. The bill requires the Pennsylvania Public Utility Commission to oversee data center operations and mandates that data centers procure "clean firm energy" from sources like nuclear, solar, wind, geothermal, and battery storage systems placed into service after January 1, 2025, with the option to make alternative compliance payments if they do not meet procurement targets directly. A central provision prohibits cost shifting, requiring data centers to bear all infrastructure and interconnection costs themselves rather than passing expenses to other ratepayers, though the bill offers expedited interconnection procedures and other incentives for facilities that bring incremental clean energy resources to the grid. The legislation also establishes two new accounts—the Data Center Low-Income Home Energy Assistance Program Enhancement Account and the Pennsylvania Energy Independence Account—funded through data center contributions to support low-income energy assistance and clean energy development. Currently referred to the Consumer Protection and Professional Licensure Committee as of May 20, 2026, the bill represents a regulatory framework designed to balance data center expansion with environmental and consumer protection goals, though the mandatory cost-bearing requirements may create barriers to facility development in the state. The bill's trajectory will depend on committee consideration and whether stakeholders view the clean energy incentives and infrastructure development benefits as offsetting the direct costs imposed on data center operators.

House Bill 2533 would amend Pennsylvania's zoning law to authorize municipalities to impose temporary moratoriums on new applications for "high impact data centers," allowing local governments to pause permitting decisions for up to 18 months. During a moratorium period, municipalities would be required to undertake specified planning activities such as infrastructure capacity assessments, public safety analysis, and environmental evaluations, while maintaining reasonable progress on these studies. The bill includes safeguards such as requiring public hearings before adoption, limiting moratoriums to applications directly related to high impact data centers while preserving normal processing of unrelated applications, allowing waivers for applicants facing substantial hardship, and protecting previously granted approvals and routine maintenance at existing facilities. This measure directly affects data center developers and companies seeking to expand or establish new facilities in Pennsylvania, as it gives individual municipalities the power to effectively delay or block projects during the study period. The bill matters for Pennsylvania's data center sector because it shifts planning authority to local governments and could slow or prevent large projects depending on local opposition and infrastructure concerns. Currently referred to the House Committee on Local Government as of May 27, 2026, the bill would need committee approval and full legislative passage before becoming law.

House Bill 2532 would repeal Article XXIX-D of Pennsylvania's Tax Reform Code of 1971, which established a computer data center equipment incentive program designed to attract data center development to the state. The program, which has been in place since at least 2014, currently provides tax benefits to data center operators and their tenants by exempting certain equipment purchases and infrastructure investments from taxation. Repealing this article would eliminate these tax incentives, meaning data center operators and qualified tenants would no longer receive favorable tax treatment on equipment such as servers, cooling systems, power generation equipment, and related technology. The bill also includes provisions to transfer related tax revenue and establish a restricted account in the Motor License Fund, suggesting the state intends to redirect any recovered tax revenue to transportation infrastructure. The measure was introduced in May 2026 and referred to the House Finance Committee, where it currently awaits consideration. If enacted, this legislation would significantly reduce Pennsylvania's competitive advantages in attracting data center investment compared to other states offering similar incentive programs.

House Bill 2539 amends Pennsylvania's Computer Data Center Equipment Incentive Program to streamline the certification process and introduce new environmental standards as a condition for tax incentives. Under the revised law, data center operators seeking sales and use tax refunds or exemptions must now obtain environmental certification within two years of receiving initial certification, choosing from standards such as LEED silver-level certification, Energy Star, Green Globe, ISO 50001 Energy Management, or ISO 14001 Environmental Management Systems, or other equivalent standards approved by the Department of Environmental Protection. The bill modifies application procedures by requiring authorized executives to affirm that their data centers will meet these environmental certification requirements in addition to existing eligibility criteria related to investment and job creation. This legislation affects data center owners and operators across Pennsylvania who currently benefit from or seek to qualify for the incentive program, potentially influencing their site selection and operational decisions. The environmental certification requirement represents a significant policy shift that ties tax incentives to sustainability performance, which may increase compliance costs but could enhance Pennsylvania's competitiveness in attracting environmentally conscious data center investment. The bill was referred to the Committee on Finance on May 27, 2026, and its pro-business classification reflects provisions that expand tax relief opportunities while incorporating environmental accountability measures.

Senate Bill 1344 would repeal Article XXIX-D of Pennsylvania's Tax Reform Code of 1971, which currently provides tax incentives and breaks for computer data center equipment and operations. The bill eliminates an established program that has allowed data center operators and qualified tenants to claim tax benefits during extended qualification periods, potentially removing significant financial incentives that have encouraged data center development and investment in the state. The legislation would also redirect tax revenue from certain sales of computer data equipment and establish a restricted account in the Motor License Fund, though the excerpt does not provide full details on how these funds would be allocated. This represents a significant policy shift that would make Pennsylvania less financially attractive for data center development compared to other jurisdictions offering similar incentives. The bill was introduced by Senators Coleman and Gebhard on June 4, 2026, and was referred to the Senate Finance Committee on the same date, where it currently awaits further consideration. Industry stakeholders and economic development officials focused on data center recruitment would likely view this repeal as a barrier to attracting major data center projects and the jobs and investment they typically bring to a region.

Senate Bill 1359 would impose a statewide 36-month moratorium on the development and permitting of hyperscale data centers in Pennsylvania, defined as data facilities with significant electrical demand thresholds ranging from 1 to 20 megawatts depending on the utility company's peak load. The moratorium would also block the expansion of existing smaller data centers if that expansion would push them into hyperscale status, as well as the construction of supporting infrastructure like power generation and transmission systems needed to operate these facilities. During the moratorium period, state agencies, municipalities, and other governmental entities would be prohibited from accepting applications or issuing permits for new data center construction or expansion, regardless of when applications were submitted. Any permits or approvals issued in violation of the moratorium would be void, and the state Attorney General would have authority to enforce the legislation through court action. The bill was introduced by Senators Muth, Comitta, and Brown in June 2026 and has been referred to the Local Government Committee, indicating it remains in the early stages of the legislative process. The moratorium represents a significant restriction on data center development in the state and would affect companies planning large-scale data operations in Pennsylvania during the three-year period.

House Bill 2650 would fundamentally reshape Pennsylvania's approach to computer data center development by imposing a strict certification prohibition on new facilities and establishing stringent clean energy requirements for any data centers that might operate under alternative provisions. The bill amends the Tax Reform Code of 1971 to block the Department of Revenue from certifying any new computer data centers under the existing equipment incentive program after the bill takes effect, while simultaneously creating a new "Governor's Responsible Infrastructure Development" (GRID) certification framework that requires data centers to procure clean firm energy from renewable and advanced sources placed in service after January 1, 2025. The clean energy mandate includes specific standards for renewable capacity, battery storage systems, and clean hydrogen generation, with companies able to satisfy requirements either through direct procurement or by making annual "alternative compliance payments" to the Pennsylvania Economic Development Authority at rates tied to the cost of solar technology. This legislation would significantly restrict new data center investment in the state by eliminating traditional tax incentives and imposing costly compliance obligations tied to emerging clean energy infrastructure that may have limited availability. The bill is currently referred to the House Finance Committee, where its progress will depend on whether lawmakers prioritize environmental and energy transition goals over economic development and data center industry concerns. For Pennsylvania's data center sector, communities considering such facilities, and technology companies planning infrastructure investment in the state, this bill represents a major policy shift with potentially far-reaching consequences for industry competitiveness and project economics.

House Bill 2198 would repeal Pennsylvania's Computer Data Center Equipment Incentive Program, which currently provides tax benefits and exemptions for companies that invest in data center infrastructure and equipment within the state. The bill, introduced by a bipartisan group of 34 House representatives and last referred to the Finance Committee in June 2026, eliminates Article XXIX-D of the Tax Reform Code of 1971, which defined qualifying data center equipment ranging from power generation and cooling systems to networking hardware and modular data centers, and established a 15-year qualification period during which operators and tenants could claim incentive benefits. The repeal would remove a significant economic development tool that has been used to attract data center projects to Pennsylvania since 2014, potentially affecting both new facility construction and major equipment investments by existing operators. This measure matters for Pennsylvania's competitiveness in the data center market, as neighboring states and other jurisdictions continue to offer similar tax incentives to draw large technology infrastructure projects and the jobs and tax revenue they generate. The bill's current status indicates it remains in committee review, and its passage would represent a policy shift away from providing preferential tax treatment for this sector. Industry stakeholders and economic development officials would likely view this repeal as a significant constraint on the state's ability to attract data center investment compared to competing jurisdictions.

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, municipalities could modify their zoning and land use regulations governing data centers while suspending the clock on any applications received during the pause period, which would then be processed under whatever new rules take effect after the pause expires. The bill would apply this authority broadly across Pennsylvania municipalities while explicitly preserving their existing powers to deny projects that don't comply with local ordinances and to enforce other land use regulations such as environmental, utility infrastructure, noise, and setback requirements. Applications submitted before a pause takes effect would continue to be processed under the rules in place when they were originally received, and municipalities could not invoke this pause procedure again for 18 months after one expires. The bill has advanced through the state House and was referred to the Senate Committee on Local Government before being referred to Rules and Executive Nominations, reflecting ongoing legislative consideration of this contentious issue. This legislation matters significantly for data center development in Pennsylvania because it would give municipalities a structured legal mechanism to slow or reshape large-scale data center projects during a critical period when those communities assess local impacts and reassess their development priorities.

Pennsylvania House Bill 2359 would refine the state's computer data center equipment incentive program by updating definitions, application procedures, and eligibility requirements for sales and use tax refunds and exemptions that help offset equipment costs for data center operators. The bill introduces new "community protections" requirements that would obligate data center owners and operators to complete a protection plan within one year of certification, which must document notifications to local municipalities, hold at least one public meeting for community input, consult with local elected officials, and submit a detailed project footprint report including facility size and electricity generation plans. These community engagement provisions apply to all data centers seeking certification under the expanded program and represent procedural obligations rather than barriers to development approval. The legislation has broad bipartisan sponsorship in the Pennsylvania House of Representatives, with over 40 co-sponsors from both parties, and was amended during consideration in June 2026. Currently, the bill has been referred to the House Finance Committee, where it awaits further deliberation before potential passage. The measure reflects Pennsylvania's effort to remain competitive in attracting data center investment while establishing baseline community notification and engagement standards for major facilities in the state.

Pennsylvania Senate Bill 1384 would fundamentally restrict new computer data center development in the state by immediately halting certifications for new facilities under the existing tax incentive program while establishing a new "Governor's Responsible Infrastructure Development" framework with strict clean energy requirements. Under the proposed new certification system, data centers would be required to procure "clean firm energy" (renewable and nuclear power sources meeting specific dispatchability standards) or make substantial alternative compliance payments to the Pennsylvania Economic Development Authority calculated at double the estimated average cost of solar electricity. The bill affects any entity seeking to build or expand computer data centers in Pennsylvania and would substantially increase the operational costs and infrastructure requirements for new projects compared to current law. This legislation matters because Pennsylvania has been seeking to attract data center investment as a major economic development opportunity, and these restrictions could deter such facilities from locating in the state or redirect them to neighboring jurisdictions with more favorable incentives. The bill was referred to the Finance Committee in early July 2026 and, based on the sentiment classification and its restrictive stance on a sector Pennsylvania has actively courted, faces uncertain prospects for passage. The broad coalition of introducers from different regions and the detailed nature of the proposed new regulatory framework suggest this represents a significant policy shift regarding data center development priorities in the commonwealth.

Pennsylvania's Commercial Data Center Water Protection Act would impose strict liability on commercial data centers (facilities with peak power demand of 25 megawatts or greater) for any pollution or diminution of public or private water supplies within 1,000 feet of their operations, requiring them to restore or replace affected supplies and provide temporary water at their own expense. The bill creates a rebuttable presumption that a data center is responsible for water contamination occurring during construction or operation within that 1,000-foot radius, placing the burden on the facility operator to prove they did not cause the damage. State environmental regulators would establish a hotline for contamination reports, investigate claims within 45 days, and publish findings online, while the Environmental Quality Board would develop implementing regulations and the Department of Environmental Protection would oversee compliance. The measure reflects concerns about data centers' substantial water consumption and their potential impact on rural and suburban water supplies, particularly in areas dependent on private wells or smaller municipal systems. Currently referred to the House Environmental and Natural Resource Protection Committee as of September 9, 2026, the bill represents a significant regulatory hurdle for data center development in Pennsylvania and would likely face industry opposition due to the substantial financial and operational burdens it imposes on these facilities.

Pennsylvania Senate Bill 1470 would require data centers consuming more than 100,000 gallons of water annually to implement specific water conservation measures, including closed-loop cooling systems, reclaimed water, recycled water, or other department-approved technologies. Facilities unable to comply with these primary conservation methods could pursue an alternative compliance plan while paying a "large water user mitigation charge" to their water service provider, calculated to recover all costs associated with serving the data center and prevent cost-shifting to residential ratepayers. Data center operators would need to submit conservation plans to the Pennsylvania Department of Environmental Protection for approval within a 30-day review period, with the department authorized to extend review by an additional 15 days and to evaluate whether proposed water conservation methods are feasible for each facility. The bill's provisions directly affect any data center development or expansion in Pennsylvania, potentially influencing site selection and operational planning for companies in the tech and cloud computing sectors that rely on substantial water resources for cooling infrastructure. Currently referred to the Environmental Resources and Energy Committee as of late September 2026, the bill's trajectory depends on committee deliberation and consideration of both environmental benefits and industry concerns about regulatory compliance costs and operational constraints. The legislation reflects growing state-level attention to water resource management in the context of expanding data center industries and represents a significant regulatory framework that would distinguish Pennsylvania's approach to balancing data center development with water conservation and protection of existing rate payers.

Senate Bill 1455 would establish a mandatory pre-application meeting procedure for data center developers in Pennsylvania municipalities, requiring proposed projects to request a meeting with local officials at least 30 days before submitting a formal development application. The meeting would include representatives from zoning, planning, municipal solicitors, and engineers, as well as elected officials, creating a structured opportunity for early dialogue between developers and municipalities. Additionally, the bill requires data center applicants to share "will-serve letters" from water, sewer, electric, and fiber infrastructure providers that detail available resources for the project and any potential impacts on local residents' access to these utilities. The legislation applies specifically to facilities or groups of facilities used to house equipment that processes, stores, manages, or transmits data, creating a clear definition for which projects fall under the new requirement. Currently referred to the Local Government Committee as of September 24, 2026, the bill represents a procedural and transparency mechanism that neither explicitly promotes nor restricts data center development but instead establishes infrastructure disclosure and stakeholder engagement standards before the formal application process begins. The requirement takes effect 60 days after enactment if passed, affecting how data center developers must engage with Pennsylvania municipalities early in their project planning.

Pennsylvania Senate Bill 1459 would require any entity proposing a new data center to commission an independent, state-recognized water usage study and submit it to the host municipality at least 30 days before filing a formal development application. The study must analyze the facility's anticipated water consumption, water quality impacts, and long-term supply sustainability within a 20-mile radius, and must calculate the data center's total water footprint to include both direct on-site water use and indirect water use embedded in electricity demand. All costs for conducting the study would fall on the data center developer. The bill applies to all proposed data centers that have not yet been approved, completed, or placed into service at the time the act takes effect, which is set for 60 days after passage. Currently referred to the Environmental Resources and Energy Committee, the bill was introduced by a bipartisan group of legislators in late September 2026 and reflects growing concerns about data center water consumption in Pennsylvania. If enacted, this requirement would add a procedural step and financial burden to the data center development process, potentially extending timelines and increasing upfront costs for developers seeking to build facilities in the state.

Pennsylvania Senate Bill 1461 would amend the state's municipal zoning code to formally define and regulate hyperscale data centers, establishing a clear pathway for their development across the state. The bill defines a hyperscale data center as a facility or group of facilities housing servers and data storage systems with backup power and cooling infrastructure, meeting a threshold of either 25 megawatts for a single facility or 50 megawatts combined across multiple facilities on the same property. The legislation requires zoning hearing boards to hold at least two publicly advertised meetings to solicit public input before approving any hyperscale data center application, creating a standardized procedural framework for community engagement. For municipalities and developers, this bill would streamline the approval process by explicitly recognizing hyperscale data centers as a permitted use category in zoning regulations rather than leaving their status ambiguous. The bill currently sits in the Local Government Committee after being introduced on September 24, 2026, with its passage expected to facilitate data center investment and expansion in Pennsylvania while maintaining basic public notification requirements. The measure reflects growing momentum nationally to attract large-scale data infrastructure investment, particularly as demand for cloud computing and artificial intelligence capacity continues to surge.

Senate Bill 1460 would amend Pennsylvania's Municipalities Planning Code to restrict data center development across the state by prohibiting all data centers in residential zoning areas and requiring larger facilities to locate exclusively in industrial and mining zones. The bill defines a "data center" broadly as any facility housing equipment that receives, stores, processes, transmits, or manages data, while designating "hyperscale and major data centers" as those with at least 5,000 servers and 100,000 square feet of combined physical space. The restrictions would apply to all municipalities in Pennsylvania that use zoning ordinances, affecting local governments' ability to approve data center projects and potentially limiting where technology companies and data storage operators can establish or expand facilities in the state. The bill was introduced on September 24, 2026 by Senators Brown, Schwank, Vogel, and Flynn and is currently referred to the Local Government Committee, where it will undergo review before advancing further in the legislative process. If enacted, the law would take effect 60 days after passage and would fundamentally reshape where data center development can occur in Pennsylvania by removing residential areas as potential locations and concentrating larger facilities in specifically designated industrial and mining zones.

Pennsylvania Senate Bill 1469 would require the state's Public Utilities Commission to establish special rate structures for large hyperscale data centers, defined as facilities with peak electrical loads of 25 megawatts or more individually or 50 megawatts in aggregate. Under the bill, electric distribution companies would be required to create a separate rate class for these data centers and ensure that all costs associated with serving them, including connection fees, transmission infrastructure, and operations and maintenance expenses, are borne directly by the data center operators rather than distributed across the general ratepaying public. This approach, known as cost-causation pricing, prevents data center development from effectively subsidizing its infrastructure costs by passing them to residential and other commercial customers. The bill is currently in the early stages of the legislative process, having been referred to the Senate Consumer Protection and Professional Licensure Committee on September 24, 2026. For Pennsylvania's data center industry, this measure represents a significant regulatory hurdle, as it eliminates potential cost advantages that might otherwise come from spreading infrastructure expenses across a broader customer base, though it also provides certainty about rate structures and protects other utility customers from bearing data center-related costs.

Pennsylvania Senate Bill 1442, known as the Secure Data Center Facilities Act, would prohibit the development and operation of data centers controlled by foreign entities within the state. The bill defines "foreign entities" broadly to include businesses owned or controlled by governments of countries on the State Department's Countries of Particular Concern list or Special Watch List, as well as companies organized under the laws of or principally based in such countries. Any data centers currently operated or under development by foreign entities would be required to immediately cease operations upon the law's effective date, 180 days after passage. The Pennsylvania Attorney General would be authorized to bring legal action to enforce the prohibition and seek injunctive relief against violators. Currently, the bill has been referred to the Senate Judiciary Committee following its introduction in September 2026, where it faces early-stage legislative consideration. The measure reflects growing national concern about foreign control of critical infrastructure but could significantly impact Pennsylvania's data center development sector and potentially affect existing commercial operations in the state.

Senate Bill 1345 would amend Pennsylvania's Municipalities Planning Code to allow local governments to temporarily pause accepting or reviewing new applications for "high impact data centers" for up to 18 months. During this moratorium period, municipalities must use the time to conduct planning studies and assessments related to infrastructure capacity, public safety, environmental impacts, and potential zoning changes. The moratorium would be optional rather than mandatory, meaning individual municipalities could choose whether to adopt it, and it would only apply to new applications while allowing previously approved projects and routine maintenance at existing facilities to proceed. The bill requires municipalities to hold a public hearing before implementing such a moratorium and to identify what planning activities they will undertake during the pause. This legislation matters for Pennsylvania's data center industry because it could enable some communities to slow or study the impacts of data center development before allowing new projects, which represents a local-control approach to managing rapid industrial growth. The bill was most recently referred to the Senate Rules and Executive Nominations Committee in July 2026, and its passage is uncertain given the procedural status.

Senate Resolution 369 directs Pennsylvania's Legislative Budget and Finance Committee to conduct a comprehensive one-year study examining whether data centers will be needed at the scale of current development proposals in the state. The study will assess current data storage technology advancements, demand forecasting, technology trends, economic development potential, impacts on energy and utility systems including land use and environmental consequences, risks of over-development and technological obsolescence, and how other states are managing data center growth. The committee will consult with multiple state agencies including the Department of Conservation and Natural Resources, Department of Environmental Protection, and the Pennsylvania Public Utility Commission, as well as grid operators to evaluate energy demand and capacity. The resolution does not impose any new restrictions, taxes, or permitting requirements on data center developers, but rather seeks to gather information to guide future policy decisions as Pennsylvania faces an increasing number of data center proposals. Within one year of passage, the committee must report its findings to the General Assembly and post them publicly online. The resolution is currently in the Communications and Technology Committee following its introduction on September 30, 2026, by Senators Brown, Flynn, Vogel, and Comitta.

Pennsylvania House Bill 2821 would require municipalities to hold a public referendum before approving large data center projects, adding a new layer of democratic oversight to the development approval process. The bill defines "high impact data centers" as facilities with a peak electricity demand of 25 megawatts or greater, and mandates that any such project approved by a local governing body or planning agency must be submitted to voters at the next scheduled election occurring at least 100 days after regulatory approval. Voters would receive a ballot measure describing key project details including total acreage, building size, estimated power consumption, water usage, and noise levels, with the option to approve or reject the specific proposed facility by majority vote. The legislation significantly affects data center developers, technology companies, and municipalities by potentially allowing communities to block projects even after they have received approval from planning bodies, though it also empowers local residents to participate directly in major infrastructure decisions. For Pennsylvania's data center industry, the bill represents a procedural challenge that could lengthen project timelines and introduce uncertainty, as voter approval would become a binding requirement rather than an advisory process. The bill was referred to the Committee on Local Government in early October 2026 and remains in committee, where its progress will depend on local government policy deliberations and broader political considerations around land use authority and community input.

Senate Bill 1408, known as the Data Center Transparency Act, would impose significant restrictions on how Pennsylvania public agencies can negotiate with data center developers and operators. The bill prohibits public agencies from entering into nondisclosure agreements with data centers that would prevent the disclosure of information about the facility's construction, development, location, or the terms of any agreements reached, with violations rendering such agreements void and unenforceable. Additionally, the legislation requires municipalities with authority to approve data center applications to hold at least two public meetings with advance notice before granting approval, ensuring residents have opportunities to comment on proposed projects. The bill also establishes requirements that applicants must file applications for electric service with their utility provider and pay associated fees before public hearings can be scheduled, creating procedural prerequisites for project advancement. As of October 5, 2026, the bill has been re-reported as amended from the Rules and Executive Nominations Committee, indicating it remains in active legislative consideration. For Pennsylvania's data center sector, this legislation would substantially increase development timelines, operational transparency, and community engagement requirements, representing a regulatory shift toward greater public oversight of what has traditionally been a more confidential development process.