Legislation

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 bill would amend the Internal Revenue Code to remove the bonus depreciation tax benefit for qualified data center property, a change that would increase the federal tax burden on data center construction and equipment purchases. Bonus depreciation currently allows businesses to deduct a large portion of capital investments in specified assets in the year they are placed in service, rather than spreading deductions over multiple years. Data center operators and developers would be significantly affected, as this tax incentive has made major infrastructure projects more financially feasible by improving their return on investment. The removal of this incentive could slow data center expansion and investment in the United States, potentially affecting competition with other jurisdictions and the availability of data infrastructure services. The bill is currently in the early stages of the legislative process, having been referred to the House Committee on Ways and Means, where it will be evaluated before any floor vote or further action.

The full text of this bill was not available at the time of this summary, so the following overview is based on the bill's title and its current legislative status. The bill seeks to clarify the legal and procedural requirements for authorizing hyperscale data centers on federally managed public lands, suggesting an intent to streamline or standardize the approval process for such development projects. This legislation would likely affect data center operators, federal land management agencies including the Bureau of Land Management and Forest Service, technology companies seeking to build or expand facilities, and communities adjacent to public lands where such projects might be located. The clarification of these requirements matters significantly for data center development because inconsistent or unclear permitting standards can delay projects and create uncertainty for investors, while streamlined procedures could accelerate facility construction on public lands in regions with limited private alternatives. The bill has been referred to both the Committee on Natural Resources and the Committee on Agriculture, with jurisdiction divided based on each committee's relevant expertise, indicating that the proposal touches on issues spanning public land management and agricultural land considerations. As the bill moves through committee review, its specific provisions and whether it ultimately facilitates or restricts data center development will become clearer once the full legislative text is publicly available.

The full text of this bill was not available for review, so this summary is based only on the title and legislative action. The bill proposes to amend the Internal Revenue Code to exclude data centers from the definition of "qualified opportunity zone businesses," which would remove tax incentive benefits that data centers could otherwise claim when operating in designated opportunity zones. Qualified opportunity zones are geographic areas designated by the federal government to encourage investment and economic development through tax breaks, and this bill would specifically prevent data center projects from accessing those benefits. This change would likely affect data center developers and operators planning facilities in opportunity zones, as well as communities that have benefited from or hoped to benefit from data center investment in economically disadvantaged areas. The exclusion could reduce the financial appeal of locating data centers in opportunity zones and potentially slow data center development in those regions, though it could also reflect concerns about whether such facilities adequately serve local economic development goals. The bill was introduced in Congress and read twice before being referred to the Committee on Finance, where it awaits further consideration and debate.

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

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

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

The No AI Data Centers on Federal Lands Act, 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.

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

The Protecting Communities from Data Center Impacts Act of 2026 would direct the Environmental Protection Agency to commission 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 halt 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 would directly restrict the data center industry's ability to expand facilities, affecting major technology companies and their infrastructure development plans. The bill's findings cite concerns from industry leaders and AI experts including Elon Musk, Bill Gates, Demis Hassabis, and Geoffrey Hinton, who have warned of potential job displacement, surveillance risks, and existential dangers from unchecked AI development. As of its latest action, the bill has been referred to both the Committee on Energy and Commerce and the Committee on Foreign Affairs for consideration of relevant provisions, with the timeline for committee review to be determined by the House Speaker. The measure faces significant headwinds given the tech industry's influence over data center policy and the difficulty of halting infrastructure development through federal moratoriums. If enacted, this legislation would represent an unprecedented intervention linking data center permitting directly to the passage of specific AI safety regulations, fundamentally reshaping how the U.S. approaches AI infrastructure development.

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

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

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

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

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

The Data Center Community Impact Act would require the Secretary of Energy, 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 Data Center Transparency Act would require federal agencies to collect and publicly report detailed information about how data centers in the United States affect air quality, water quality, and electricity consumption. Specifically, the Environmental Protection Agency would issue quarterly reports on data center water usage, water reuse practices, impacts on local water systems and rates, pollution discharges, and greenhouse gas emissions, with particular attention to effects on overburdened communities. The Energy Information Administration would issue semi-annual reports on total energy consumption by data centers broken down by state, track new data center openings, and monitor changes in household energy bills and costs. The bill affects data center operators and the federal agencies tasked with data collection and reporting, while also providing information to policymakers, industry professionals, and concerned communities about the environmental footprint of the data center industry. The legislation matters for data center development because transparent reporting of environmental impacts could inform future land use and infrastructure planning decisions, influence public discourse around data center siting, and potentially shape how communities evaluate proposed data center projects. As of January 2026, the bill has been referred to the House Committee on Energy and Commerce and awaits further consideration.

The Protecting Families from AI Data Center Energy Costs Act would require the Federal Energy Regulatory Commission to convene a technical conference within 90 days to examine how large energy consumers, particularly AI data centers, affect electricity costs for residential and small business customers. The conference would bring together federal regulators, state utility commissioners, power companies, ratepayer advocates, and data center operators to discuss rate structures and strategies that could shield ordinary households and small businesses from bearing increased energy costs as data center demand grows. Following the conference, the FERC would have 180 days to submit a report to Congress containing recommendations and best practices for addressing the cost-sharing issue. The bill itself does not impose restrictions, taxes, or requirements on data centers but rather initiates a fact-finding and advisory process to understand the problem and explore potential solutions. The measure passed out of committee unanimously on a 44-0 vote, indicating broad bipartisan support for examining the issue. The bill reflects growing concern among policymakers that the rapid expansion of energy-intensive AI infrastructure could shift costs to ordinary ratepayers while leaving the ultimate regulatory or policy response to future deliberation.

Alabama's SB270, enacted into law, establishes specific criteria that the state's Public Service Commission must apply when reviewing electricity service contracts between utilities and large data centers consuming at least 150 megawatts of power. Under the new law, which takes effect October 1, 2026, the Commission may approve such contracts as being in the public interest if they ensure the data center reimburses the utility for all incremental costs directly caused by serving that facility and if they generate positive benefits for other utility customers. The bill defines these potential benefits to include cost reductions for other customers, improvements to the utility's power system efficiency, and contributions to local economic growth, giving the Commission explicit factors to weigh during contract reviews. This legislation effectively streamlines the regulatory approval process for large data center development in Alabama by establishing favorable conditions under which utilities can negotiate specialized power contracts with minimal Commission obstruction. The law matters for data center operators and utilities alike because it reduces uncertainty around contract approval while theoretically protecting other ratepayers by requiring cost recovery and broader community benefits. Alabama's enactment of this measure signals the state's intent to attract major data center investments through a more predictable and developer-friendly regulatory environment.

Senate Bill 250 would require Alaska electric and gas utilities to isolate all costs directly attributable to serving data centers and assign those costs exclusively to the data center customer rather than spreading them across all ratepayers. The bill mandates that utilities enter into specific contracts with data center customers, subject to regulatory commission approval, that account for infrastructure costs, variable costs, and transmission infrastructure built to serve the facility, with those costs recovered directly from the data center through construction contributions, rate payments, or other means specified in the contract. This requirement applies to both dedicated infrastructure built solely for the data center and shared infrastructure, with the contract specifying the proportional cost allocation for shared systems. The legislation also includes a safeguard prohibiting contracts that would increase fuel supply risks for other utilities in the state, and establishes that transmission infrastructure built specifically for data centers will not automatically be considered part of the backbone transmission system for cost-sharing purposes. The bill is currently in the hearing phase in the Alaska House of Representatives, having been held in committee pending a recall by the chair. The bill effectively shields other utility customers from bearing the costs of data center infrastructure and operations, potentially making Alaska a more attractive location for data center development while preventing cost-shifting to residential and business ratepayers.

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 California bill was not available for review, so this summary is based on the bill title and its current legislative status. Based on the title "Water resources: data centers," this legislation appears to address water consumption and management related to data center operations in California, likely by imposing restrictions or establishing requirements for how data centers use water resources. The bill would primarily affect data center operators and developers planning facilities in California, as well as potentially local water agencies and communities where data centers are located. This legislation matters for California's data center industry because water consumption is a significant environmental concern associated with data center operations, and new regulations could impact the feasibility and cost of building and operating facilities in the state. The bill has completed the legislative process and was presented to the Governor on a recent date, meaning it now awaits executive action, either approval or veto. If enacted, this measure could reshape how the data center industry approaches water management in one of the nation's largest technology hubs.

The full text of this bill was not available for this summary, so the following overview is based on the bill's title and its current legislative status. Based on its title, this California legislation appears to establish or modify reporting requirements specifically for data centers operating in the state. The bill likely affects data center operators, state agencies responsible for oversight, and potentially local governments that permit these facilities. Such reporting requirements typically serve to improve transparency and data collection around data center operations, energy consumption, water usage, or economic impacts, helping policymakers and the public better understand the industry's footprint in California. The bill's procedural nature, focused on reporting rather than incentives or restrictions, suggests it is designed to gather information rather than directly encourage or discourage data center development. The legislation has been enrolled and presented to the Governor as of the latest action, meaning it has passed both chambers of the California legislature and is awaiting the Governor's signature to become law.

The full text of this bill was not available for review, so this summary is based solely on the bill title and its current legislative status. Based on its title, this legislation addresses rate structures applicable to data centers operating in California, suggesting it modifies how utilities or other entities calculate fees, charges, or pricing for data center operations or services. The bill likely affects data center operators, utility companies, and potentially state regulators responsible for overseeing energy and telecommunications infrastructure. Rate structure changes can significantly influence the economics of data center development and operations, affecting decisions about facility location, expansion, and long-term viability in the state. The specific impacts, whether favorable or restrictive to the industry, cannot be determined without reviewing the full legislative text. The bill has been enrolled and presented to the Governor as of the latest available information, meaning it has passed both legislative chambers and now awaits executive action.

The full text of this bill was not available for review, so this summary is based on the bill's title and legislative status. The bill appears to designate data centers and geothermal powerplant projects as "environmental leadership development projects" under California's Environmental Quality Act, a classification that typically streamlines the environmental review and permitting process by reducing regulatory requirements and timelines. This designation would likely benefit data center developers and operators seeking to build or expand facilities in California, as well as geothermal energy companies looking to develop power generation projects. The change matters significantly for data center development in California because it could accelerate project timelines and reduce compliance costs, potentially making the state more competitive for data center investment while supporters argue it advances environmental goals. The bill has completed the legislative process and was enrolled and presented to the Governor on the date of the latest action, meaning it now awaits the Governor's signature or veto. The final outcome will depend on the Governor's decision on whether to sign the measure into law.

The full text of this bill was not available for review, so this summary is based on the bill title and its legislative status. Based on its title, this California legislation would establish water use disclosure requirements for data centers operating in the state. The bill would likely require data center operators to report and publicly disclose information about their water consumption, potentially creating new compliance and administrative obligations for the industry. This measure would affect data center owners and operators across California, particularly large facilities that consume substantial quantities of water for cooling systems. The bill matters for data center development because water use transparency could influence where companies choose to build facilities, how they design cooling systems, and their operational costs, while also responding to growing public concern about data center resource consumption in a water-stressed state. As of its latest action, the bill has been enrolled and presented to the Governor for consideration, meaning it has passed both legislative chambers and now awaits a gubernatorial signature or veto.

The full text of this California bill was not available for review at the time this summary was prepared. Based on the bill title "Electricity: data centers," the legislation addresses some aspect of electricity regulation or policy as it relates to data centers operating in California. The bill could potentially involve electricity rates, grid reliability, renewable energy requirements, interconnection standards, or other utility-related matters affecting data center operations, though the specific provisions remain unclear without access to the complete text. This legislation would likely impact data center operators, electricity providers, and potentially residents in areas where data centers are located or proposed. Data center electricity policies matter significantly for California given the state's substantial existing data center infrastructure and its goals around energy efficiency and climate action. The bill has completed the legislative process and was presented to the Governor on the date listed above, meaning the Governor now has a set period to sign, veto, or allow it to become law without a signature.

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 Hawaii State Energy Office to establish a working group to study how large data centers (those requiring five megawatts or more of instantaneous electricity demand) would affect the state's electric utilities, ratepayers, natural resources, and climate goals. The working group, chaired by Hawaii's Chief Energy Officer, would include representatives from state agencies, electric utilities, consumer advocacy groups, and environmental organizations, tasked with examining regulatory safeguards and policy options to address potential impacts. The resolution identifies specific concerns about data centers, including their substantial electricity consumption, demands for water cooling resources, potential cost-shifting to residential and small-business ratepayers, grid reliability risks on Hawaii's isolated island electric systems, and possible increases in greenhouse gas emissions if fossil fuel generation is needed to support the facilities. While Hawaii has not yet received proposals for large hyperscale data centers, the resolution frames proactive study as necessary given national expansion of artificial intelligence infrastructure and the state's constitutional duty to protect water resources and its commitments to renewable energy and climate goals. The bill has been reported from the Finance Committee with a recommendation for adoption, indicating it has advanced in the legislative process. The resolution's focus on regulatory constraints and safeguards rather than neutral study of both costs and benefits reflects the legislature's apparent concern that unrestricted data center development could conflict with Hawaii's energy and environmental objectives.

Senate Concurrent Resolution 95 requests that Hawaii's State Energy Office establish a working group to study how large data centers could affect the state's electric grid, utility costs, water resources, and climate commitments. The working group, chaired by the Chief Energy Officer and including representatives from utilities, environmental organizations, energy developers, and other stakeholders, would examine potential regulatory frameworks to ensure data center developers pay for grid infrastructure upgrades, protect residential and small-business ratepayers from cost increases, and impose transparency requirements on electricity consumption, water usage, and emissions. While Hawaii has not yet received proposals for hyperscale data center facilities, the resolution frames this study as a proactive measure to establish safeguards before such projects arrive, given the dramatic national growth in artificial intelligence infrastructure and the unique vulnerabilities of Hawaii's isolated island electric grids. The resolution is currently referred to the Energy, Environment, and Planning Committee and the Finance Committee as of referral sheet 28. The measure's language focusing on cost-bearing mechanisms, ratepayer protection, and alignment with clean energy goals suggests legislative intent to develop restrictive regulatory conditions on data center development should proposals emerge in Hawaii. The study's outcome could significantly shape the feasibility and terms under which data center operators could develop facilities in the state.

Hawaii House Concurrent Resolution 206 requests the Hawaii State Energy Office to establish a working group to study how large data centers (those requiring five megawatts or more of electricity) would affect the state's electric utilities, ratepayers, natural resources, and climate goals. The working group would include representatives from the state energy office, business and economic development, land and natural resources, the Public Utilities Commission, utilities, consumer advocacy organizations, and environmental groups, with the chief energy officer serving as chair. The resolution directs the group to examine potential regulatory safeguards and policies, including mechanisms to ensure data center developers pay for any new electricity infrastructure their facilities require, protections for residential and small-business ratepayers from increased electricity costs, and transparency requirements for data center energy consumption, water usage, and greenhouse gas emissions. While Hawaii has not yet received proposals for large hyperscale data centers, the resolution anticipates that such facilities may be proposed in the future given rapid national growth in artificial intelligence infrastructure and seeks to develop a regulatory framework proactively. The resolution has been adopted by the House and transmitted to the Senate, advancing it to the next stage of the legislative process. The extensive preamble emphasizing concerns about cost-shifting to ratepayers, water depletion, grid reliability risks, and climate impacts suggests the legislature views potential data center development as a challenge requiring protective safeguards rather than economic incentive.

Hawaii's Senate has passed a resolution requesting the state's Energy Office to establish a working group that will study how large data centers might affect the state's power grid, utility costs, water resources, and climate commitments. The working group will include representatives from state energy and environmental agencies, the Public Utilities Commission, electric utilities, consumer and environmental advocates, and data center developers, with the state's Chief Energy Officer serving as chair. The group is specifically tasked with examining regulatory safeguards and policy options to ensure that data center developers pay for any new electricity infrastructure their facilities require, protect residential and small-business ratepayers from cost increases, and require data centers to meet Hawaii's renewable energy and emissions standards. Although Hawaii has not yet received proposals for major data centers, the resolution notes that the rapid national growth of artificial intelligence infrastructure makes it prudent for the state to develop regulatory frameworks before such proposals arrive, given Hawaii's particular vulnerability as an island state with isolated electric grids and limited natural resources. The resolution was certified and sent on May 12, 2026, and represents a precautionary approach to potential data center development rather than an invitation for such projects. This action signals that Hawaii intends to place significant conditions on any large data center development, prioritizing protection of residents and environmental resources over attracting this type of industrial infrastructure.

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.

Senate Bill 3120, introduced by Senator Laura M. Murphy in February 2026, modifies Illinois's data center tax incentive program by adding a water stewardship documentation requirement for facilities seeking to qualify for state tax exemptions and credits. Under the bill, both new and existing data centers must now provide details about their water management strategies, including documentation of whether they use closed-loop cooling systems or treated municipal wastewater, when such strategies were adopted, and evidence of their continued use. This requirement applies to all data centers seeking to participate in the existing incentive program, which provides exemptions from sales taxes and credits against state income taxes for qualifying facilities that meet capital investment thresholds of at least $250 million over five years and create at least 20 high-wage jobs. The measure represents a modest sustainability condition on development incentives rather than a prohibition on data center construction, as facilities can qualify by demonstrating reasonable water management practices rather than being subject to strict restrictions. The bill is currently in the Senate's assignment process following Committee Amendment No. 1, suggesting it remains in early stages of the legislative cycle. For industry stakeholders, the change means data centers must now track and report water usage practices to access Illinois's generous tax benefits, which could encourage more environmentally responsible facility design while maintaining the state's competitive posture in attracting major data center investment.

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.

This Iowa bill conditions existing sales and use tax exemptions for data center businesses, web search portal businesses, and nuclear electric generation facilities on annual contributions to higher education institutions governed by the state board of regents. Data center and web search portal businesses completing new construction or major additions on or after January 1, 2027 would be required to contribute at least five percent of the aggregate value of their annual sales tax exemptions to support nuclear engineering programs at state universities, while nuclear facilities must make similar contributions to establish or maintain such programs. Businesses that fail to make required contributions would lose their tax exemption eligibility, have their registration cancelled, and be required to repay all claimed exemptions for the year in which they failed to contribute. The bill has advanced from committee review and been renumbered as SF 2498, indicating it remains active in the legislative process. This measure maintains Iowa's existing tax incentives for data center development while redirecting a portion of the tax savings toward workforce development and educational infrastructure in a critical field. The approach represents an effort to balance economic incentives for data center investment with public investment in higher education that supports the state's long-term competitiveness in technology sectors.

Senate Bill 92 extends Kansas provisions that allow electric utilities to avoid offering parallel generation service to certain large load customers, such as data centers, while exempting these customers from peak demand calculations used to determine utility rates and infrastructure needs. The bill modifies state law governing distributed energy systems, which are on-site power generation facilities capable of exporting excess electricity back to the utility grid, and establishes procedures for customer applications, utility approval timelines, and interconnection fees. For data center operators in Kansas, the legislation means continued ability to install and operate their own power generation systems while potentially reducing their overall electricity costs by avoiding peak demand charges and securing more favorable service terms from their utility providers. The provisions create a regulatory framework that balances utility concerns about grid safety and system impacts against the operational flexibility that large industrial customers need to manage energy costs competitively. The bill was enrolled and presented to the Kansas Governor on April 3, 2026, placing it in the final stages of the legislative process pending executive signature or veto. The extension of these provisions suggests Kansas policymakers view such arrangements as beneficial for attracting and retaining large energy-intensive facilities like data centers that contribute to economic development and job creation in the state.

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.

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 explicitly subject local zoning ordinances to a new "data center planning and responsibility act," adding it to a list of state-level authorities that override local zoning decisions. The bill limits the ability of Michigan counties and townships to enforce their own zoning rules against data center development by making such projects subject to state-level planning requirements rather than local control. This change matters for data center development because it removes a significant regulatory barrier at the local level, allowing projects to proceed even where they conflict with local zoning ordinances, similar to existing exemptions for electric transmission lines, wireless facilities, and renewable energy projects. The bill is tied to House Bill 5882, meaning it cannot take effect unless that companion legislation is also enacted, suggesting the two bills are designed to work together as a comprehensive data center regulatory framework. As of April 23, 2026, the bill has been introduced and referred to the Committee on Government Operations, and it would take effect 90 days after enactment if approved. The bill's pro-development orientation reflects efforts to facilitate data center investment in Michigan by reducing local zoning obstacles.

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 new "data center community benefit agreement act," placing data centers in the same category as renewable energy projects, wireless facilities, and electric transmission lines when it comes to local regulatory authority. The bill adds data centers to a list of infrastructure projects that can override or limit municipal zoning restrictions, effectively streamlining the permitting process for data center developers by reducing the ability of counties and townships to impose zoning barriers. The legislation ties its enactment to companion bill HB 6137, meaning it will only take effect if that related measure is also passed, suggesting these bills are part of a coordinated legislative package designed to facilitate data center development across the state. For communities and local governments, this represents a significant shift in land use control, as it would preempt local zoning decisions and subordinate them to state-level policy favoring data center projects. The bill was introduced on June 25, 2026, with bipartisan sponsorship and referred to the Committee on Government Operations, where it remains pending. If enacted, this legislation would substantially reshape how Michigan municipalities can regulate data center siting and development, making it easier for operators to establish facilities even where local zoning ordinances or community preferences might otherwise restrict such uses.

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.

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.

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.

Senate Bill 4304, introduced in the New Jersey Legislature on May 18, 2026, would prohibit data center developers and their agents from signing non-disclosure agreements with municipal agencies, approving authorities, or property sellers that conceal details or prevent public review of development plans. The bill declares such concealment agreements against public policy and unenforceable, and requires data center applicants to attest under oath that no such agreements were made at any point during the real estate transaction or development process. Approving authorities would be barred from granting any required permits, site plan approvals, or subdivisions if an applicant violates these restrictions, creating a significant enforcement mechanism tied to the permitting process. The bill applies specifically to data centers, defined as facilities whose primary purpose is storing, managing, and processing digital data, though it does not restrict data center development itself or create any new taxes or financial incentives. Currently, the bill has been referred to the Senate Community and Urban Affairs Committee and remains in the early stages of the legislative process. The measure addresses concerns about transparency in data center siting decisions by preventing secret agreements that could shield development plans from public scrutiny, which matters significantly for communities where such facilities may impact local land use and infrastructure.

Senate Bill 4400 requires New Jersey's Department of Environmental Protection to study the water consumption impacts of large-scale data centers within one year and submit a detailed report to the Governor and Legislature within 15 months of the bill's enactment. The study would examine both historical water use patterns from the past three to seven years and project future water demands from data centers that may be built in the state, while also assessing how current water consumption has affected drinking water systems, wastewater infrastructure, ratepayers, and overall state water budgets. The bill grants the DEP authority to request water use data directly from data center operators, public utilities, and other relevant entities, including information about cooling technologies, water sources, and conservation practices currently in place. Unlike legislation that would impose restrictions or requirements on data center operations, this bill is purely investigative in nature and does not create new operational burdens or incentives for the industry, instead establishing a factual basis for future policy decisions. The measure is currently in the early stages of the legislative process, having been introduced in June 2026 and referred to the Senate Environment and Energy Committee, where it remains pending. The bill's passage would provide policymakers with comprehensive data about data center water demands at a time when the industry's rapid expansion in New Jersey has raised concerns among environmental advocates and water utility officials about resource sustainability.

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 would require data center owners and operators to submit detailed water and energy usage reports to the state's Board of Public Utilities twice per year, beginning either three or six months after the law takes effect depending on when the facility commenced operations. The reporting requirements include basic facility information along with comprehensive data on total energy consumption, electricity sources and agreements, on-site power supplies, information technology equipment energy use, total water input, and water sources. For data centers that receive financial incentives from state agencies, the bill adds stricter reporting requirements including performance metrics such as power usage effectiveness, renewable energy factors, water usage effectiveness, and sustainability indicators like equipment intake air temperatures and waste heat temperatures. The legislation affects all data center operators in New Jersey and represents a significant expansion of state oversight over the data center industry's resource consumption at a time when data centers are among the state's fastest-growing industrial facilities. The bill was introduced in February 2026 and has been substituted by S3379 in its second reading, indicating it remains in active consideration in the legislative process. For the data center industry, the mandate creates ongoing administrative compliance obligations and increases transparency around resource usage, factors that could influence future facility siting and investment decisions in the state.

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.

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 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 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.

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.

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.

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.

Senate Bill 1323, known as the Data Center Act, would establish a comprehensive regulatory framework for commercial data centers in Pennsylvania with a peak energy demand of 25 megawatts or greater. The legislation creates specific requirements for data centers to procure or support "clean firm energy" from sources including nuclear, hydroelectric, geothermal, solar, wind, fuel cells, and battery storage systems, with facilities able to either directly procure this energy or make alternative compliance payments per megawatt-hour. The bill assigns regulatory duties to the Pennsylvania Public Utility Commission, the Department of Human Services, and the Pennsylvania Energy Development Authority, while establishing two new funding accounts: one to enhance low-income home energy assistance programs and another to support Pennsylvania energy independence initiatives. Additionally, the law would mandate disclosure requirements, backup generation standards, curtailment protocols, and importantly, would create an expedited interconnection process for data centers that bring incremental clean energy resources to the grid, potentially accelerating deployment timelines. The bill includes enforcement provisions and prohibitions on cost-shifting, ensuring that data center operations do not inappropriately transfer expenses to other utility customers or the public. Currently, the bill is in the early stages of the legislative process, having been referred to the Consumer Protection and Professional Licensure Committee on May 20, 2026.

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.

Senate Bill 1345 would amend Pennsylvania's municipal zoning laws to allow local governments to impose temporary 18-month moratoriums on accepting and reviewing new applications for "high impact data centers," a category not fully defined in this excerpt. During these moratoriums, municipalities could halt consideration of zoning changes, conditional use permits, variances, land development plans, and building permits specifically tied to high impact data center projects, though the moratoriums would not affect applications for smaller data centers, existing facilities, or enforcement actions. Before adopting such a moratorium, municipalities would be required to hold a public hearing and document in their ordinance what planning activities they intend to undertake during the freeze period, such as infrastructure capacity studies, emergency services analysis, or drafting new data center regulations. The bill appears designed to give Pennsylvania communities time to study the impacts of data center development and potentially create new regulatory frameworks before allowing large projects to proceed. Currently in second consideration in the Pennsylvania Senate, the bill has been amended since its introduction and reportedly reflects concerns from some municipalities about the rapid expansion of data center projects. For the data center industry, passage would create uncertainty and potential delays for large facility proposals, while for municipalities and residents, it offers a tool to pause development and conduct impact assessments before committing to hosting such facilities.

Pennsylvania Senate Bill 1408 would prohibit public agencies from entering into nondisclosure agreements with data center owners and operators that restrict the public disclosure of information about data center construction, development, location, or the terms of agreements themselves. The bill defines "data centers" as facilities housing servers or data storage systems with backup power and cooling infrastructure, and applies to all Commonwealth and local agencies as defined under Pennsylvania's Right-to-Know Law. Under the proposed legislation, any agreement that violates this prohibition would be void and unenforceable, effectively invalidating confidentiality clauses that data center companies commonly negotiate with municipalities and state agencies. The bill addresses concerns about transparency in data center deals, which often involve significant tax incentives, infrastructure investments, and land use changes that affect communities but have historically been kept confidential through nondisclosure agreements. Currently, the bill is in the early legislative stage, having been referred to the Senate Communications and Technology Committee on July 20, 2026, where it will likely be reviewed and debated before potential advancement. The measure takes a neutral regulatory stance by focusing purely on disclosure rather than encouraging or discouraging data center development itself, though it would significantly increase public access to information about these projects if enacted.

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.

The full text of this South Carolina bill was not available for review, so this summary is based on the bill title and its current legislative status. Based on its title, the Data Center Moratorium bill appears designed to restrict or temporarily halt the development of new data centers within South Carolina, though the specific scope, duration, and conditions of such a restriction cannot be confirmed without the full legislative text. If enacted, this measure would likely affect data center companies seeking to establish new facilities in the state, as well as local communities and economic development interests that depend on or oppose such projects. The bill's significance relates to an ongoing national debate over data center expansion, which proponents argue brings economic benefits and job creation while critics raise concerns about energy consumption, water usage, environmental impacts, and infrastructure strain. Currently, the bill has been referred to the Committee on Ways and Means, where it will undergo review and potential amendment before any floor vote. The measure's progression through committee will indicate whether there is sufficient legislative support for imposing restrictions on data center development in South Carolina.

South Carolina's Data Center Development Act establishes a comprehensive regulatory framework designed to attract data center investment by creating streamlined permitting processes, operational standards, and financial incentives. The bill creates a Data Center Development Office within the Department of Environmental Services, establishes a Data Center Industry Advisory Committee, and requires data centers to obtain siting permits before facility development while meeting performance-based efficiency and water conservation standards. The legislation addresses utilities' concerns by giving the Public Service Commission authority over rate structures and cost allocation methodologies, ensuring that existing ratepayers are protected from bearing disproportionate infrastructure costs associated with data center operations. The law includes incentives for locating facilities on brownfield sites and previously developed industrial properties, recognizing their value for environmental stewardship and economic revitalization. A two-year transition period prioritizes technical assistance and guidance over enforcement, giving operators time to adjust to the new regulatory requirements. The bill's latest action was a scrivener's error correction, indicating it is in final legislative stages and likely to advance toward enactment.

The Tennessee Data Center Impact Review Act would require data centers with more than 20 megawatts of power capacity to obtain a permit from the state's water and wastewater operator board before operating in Tennessee, a requirement that would take effect on January 1, 2027. Applicants would need to submit detailed information about their water sources, projected usage, impacts on residential and agricultural water supplies, and conservation measures, along with proof that their operations would not materially harm water availability or quality for residential and public purposes. The board would have authority to deny applications or impose conditions based on concerns about wastewater quality, treatment compatibility, and cumulative impacts on water systems, and would be required to presume that residential water access takes precedence over industrial data center uses. The bill also requires the board to hold public hearings with notice posted in local newspapers and on the state website before approving applications, and mandates coordination with the Tennessee Valley Authority and other agencies for projects using TVA-managed waters. This legislation would significantly affect data center development in Tennessee by creating a substantive regulatory review process focused on water resource protection rather than the current approach. The bill is currently assigned to the General Subcommittee of the Senate Commerce and Labor Committee, and its passage would represent a major shift toward restricting rather than encouraging data center investment in the state.

This Tennessee legislation would streamline the process by which qualified data centers apply for job tax credits by allowing them to submit compliance certifications electronically rather than through other methods. Specifically, the bill amends state tax code to permit data centers to electronically certify that they have not violated three federal labor laws within the previous 12 months: the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act of 1938, and federal immigration laws. The change affects data center operators seeking to claim tax incentives in Tennessee by reducing the administrative burden associated with proving labor law compliance. For the state's data center development strategy, streamlining this certification process could make Tennessee's tax credit program more attractive and accessible to companies considering facility investments. The bill is currently in the Senate Finance, Ways, and Means Subcommittee after being taken off notice for calendar consideration. Given the technical nature of the amendment and its pro-business framing around administrative efficiency, the bill appears positioned for relatively straightforward advancement through the legislative process.

This legislation would allow qualified data centers in Tennessee to electronically submit certifications required for job tax credit eligibility, rather than using traditional paper-based documentation. Specifically, the bill enables data centers applying for tax credits to certify online that they have not violated the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, or federal immigration laws within the previous 12 months. By streamlining this administrative process, the measure reduces compliance burdens for data center operators seeking to access available tax incentives in the state. The bill affects data center companies pursuing job tax credits and potentially the Tennessee Department of Revenue, which administers these credits. The legislation is currently scheduled for consideration by the Senate Finance, Ways, and Means Committee on April 21, 2026, suggesting it remains in the early-to-middle stages of the legislative process. This type of regulatory modernization is generally viewed as supportive of data center development by lowering operational obstacles for companies evaluating investment in Tennessee.

Tennessee's Public Chapter 961 prohibits municipalities and electric utilities from absorbing or subsidizing the infrastructure costs associated with data center development, instead requiring data center owners and operators to pay the full cost of necessary upgrades to electrical systems, water, wastewater, natural gas, telecommunications, and other utilities. The law applies to new data centers, expansions of existing facilities, and remodeled properties, and it explicitly prevents utilities from raising rates on residential or other commercial and industrial customers to cover data center-related infrastructure investments or increased electricity demand. Electric utilities must conduct their ratemaking to ensure data center costs are borne solely by the data center operator, and they may create a separate customer class for data centers if needed to comply with this requirement; utilities must also make written findings publicly available before any rate increases to demonstrate those increases are unrelated to data center development. The legislation establishes a complaint mechanism allowing customers and community groups to challenge utilities at the Tennessee Public Utility Commission or before local governing boards if they believe the utility has violated these cost allocation requirements. Having become law, this measure significantly shapes the economic landscape for data center development in Tennessee by shifting infrastructure investment responsibility entirely to private operators while protecting other ratepayers from bearing those costs. The bill represents a policy choice to encourage data center investment while safeguarding existing utility customers from rate increases tied to major industrial development.

Tennessee's Public Chapter 961, based on Senate Bill 2128 and House Bill 1847, prohibits municipalities and electric utilities from paying for or absorbing the costs of electrical infrastructure needed to serve data centers, instead requiring data center owners and operators to pay the full cost of all infrastructure improvements. The law defines data center infrastructure broadly to include not only electrical systems but also water, wastewater, natural gas, telecommunications, roads, and other support systems necessary for data center operations and expansions. The legislation explicitly prevents utilities from passing data center infrastructure costs to other customers by raising rates on residential or commercial and industrial customers, and requires utilities to use separate cost allocation methods such as creating a dedicated customer class for data centers if necessary. Electric utility customers, including households and other businesses, are protected by complaint mechanisms allowing them to challenge rate increases before the Public Utility Commission or local utility governing boards if they believe the utility is violating these cost allocation rules. The enactment of this bill as Public Chapter 961 removes significant financial barriers to data center development in Tennessee by shifting infrastructure investment obligations entirely to data center operators while shielding existing customers from subsidizing that development. This legislative approach signals Tennessee's intent to actively attract data center investment by creating a favorable economic environment for the industry.

H.727, titled the Vermont Sustainable Data Centers Act, would establish a comprehensive regulatory framework governing the development of large data centers (defined as facilities using 20 megawatts or more of power) within the state. The bill requires the Public Utility Commission to create a separate ratepayer class for data centers with standardized tariffs across all electric distribution companies, including provisions to ensure data centers bear their proportional share of infrastructure costs rather than shifting expenses to residential and small business ratepayers. Data center operators would be required to sign minimum 10-year service contracts with mandatory payment obligations based on projected electricity usage, collateral requirements to protect against stranded costs, and excess demand charges, while new facilities could not begin construction without first obtaining a certificate of public good from the Commission based on findings regarding economic benefit, environmental impact, community effects, and grid reliability. The bill matters for Vermont's data center development because it represents a significant regulatory hurdle that could substantially slow or limit the industry's expansion in the state by imposing financial, contractual, and approval requirements not previously in place. The Governor vetoed this legislation, and that veto was sustained by the Vermont House with a vote of 83 to 52 on the latest legislative action, meaning the bill will not become law and data centers will continue operating under the existing regulatory framework without these new restrictions.

This Virginia law, which took effect on April 8, 2026, establishes new emission control requirements for engine-generator sets used at data centers seeking state permits. Beginning July 1, 2026, any data center applying for a permit from Virginia's Department of Environmental Quality must equip its backup generators with emissions control technology meeting or exceeding "Tier 4 equivalent" standards, which include selective catalytic reduction systems for nitrogen oxide reduction, diesel oxidation catalysts for carbon monoxide control, and diesel particulate filters for particulate matter reduction. The law applies to all new data center permit applications and general permit coverage, effectively setting a minimum environmental performance floor for backup power systems at these facilities. The Department retains authority to impose even stricter emission limits if warranted under existing air quality regulations, meaning Tier 4 equivalent represents a baseline rather than a ceiling. For the data center industry in Virginia, this requirement increases the upfront capital costs and technical complexity of facility development, particularly in regions where backup generators are essential infrastructure. The law's passage and enactment suggest Virginia lawmakers prioritized air quality protections around data centers, which represent significant industrial development in the state.

Virginia's Chapter 567, approved on April 13, 2026, establishes new procedural requirements for data centers consuming 100 megawatts or more of electrical power by mandating comprehensive site assessments before localities can approve rezoning, special exceptions, or special use permits. Applicants must examine the sound profile of these high energy use facilities (HEUFs) within 500 feet of residential units and schools, and localities may also require assessments of impacts on groundwater, surface water, agricultural resources, parks, historic sites, and forestland. Additionally, electric utilities serving these facilities must submit information about substations and transmission voltage requirements to local authorities. Local governments are required to use these assessments to determine consistency with their comprehensive plans and compliance with noise ordinances, zoning provisions, and other applicable regulations. The law preserves existing State Corporation Commission authority and does not supersede local zoning authority, and it exempts expansions of already-approved facilities from these requirements if the expansion does not exceed an additional 100 megawatts. This legislation creates procedural hurdles and expanded environmental review mechanisms that could delay or complicate data center siting decisions in Virginia localities.

Virginia's 2026 legislation (Chapter 568) establishes new environmental review requirements for data center developments that would consume 100 megawatts or more of electrical power, a threshold that captures only the largest facilities in the state. Before approving rezoning, special exceptions, or special use permits for these high-energy-use facilities, localities are now required to obtain site assessments examining the sound profile impacts on nearby residences and schools within 500 feet, and may additionally require assessments of effects on water resources, agricultural land, parks, historic sites, and forests. The law also mandates that electric utilities provide information about substations and transmission voltage requirements needed to serve the proposed facility, with all assessments intended to help localities determine consistency with their comprehensive plans and compliance with noise and zoning ordinances. The bill, which became law on April 13, 2026, preserves local zoning authority while explicitly protecting the State Corporation Commission's jurisdiction over utility matters, and includes an exemption for expansions of existing approved facilities that do not exceed an additional 100 megawatts. For data center developers, the legislation introduces procedural and environmental compliance requirements that could lengthen approval timelines and potentially influence site selection decisions, though it does not give localities authority to prohibit data centers outright based on the assessments. This represents a significant shift in Virginia's data center siting process, as the state has historically pursued relatively developer-friendly policies to attract this economically valuable industry.

Virginia's H 323, enacted as Chapter 591 of the 2026 Acts of Assembly, directs the Department of Energy to lead a coordinated effort to expand the use of waste heat generated by data centers throughout the Commonwealth. The Department is tasked with identifying reuse opportunities for this waste heat, facilitating information sharing between data centers and potential users such as residential buildings, commercial facilities, district heating systems, and industrial operations, and studying best practices from other jurisdictions. The bill requires the Department to evaluate existing approaches to waste heat utilization and develop recommendations for state and local policies that could increase adoption while assessing the costs needed for supporting infrastructure and programs. To accomplish these goals, the Department must establish a work group that brings together representatives from the Virginia Economic Development Partnership Authority, the data center industry, local governments, utilities, state agencies, potential heat users, and other stakeholders. The Department is required to submit a comprehensive report to the House and Senate commerce committees by September 1, 2026, detailing its findings, recommendations, and any proposed legislative or policy changes. Having been approved on April 13, 2026, the bill is now in effect and reflects Virginia's interest in leveraging data center waste heat as a resource for energy efficiency and economic development across the state.

Virginia's Chapter 623, approved in April 2026, modifies state water resource planning requirements to create separate tracking and reporting of water consumption by data centers. The legislation requires water utilities that serve data centers to report potable and reclaimed water volumes provided to these facilities distinctly from domestic, commercial, and industrial water use categories, enabling state water resource planners to better understand and forecast data center water demands as they prepare river basin management plans. This change affects water utilities and the State Board of Water Control, which oversees regional water supply planning, rather than imposing direct restrictions or requirements on data center operators themselves. The measure matters for Virginia's data center industry because accurate water consumption data is essential for state-level water planning, particularly in regions experiencing growth in data center development and in watersheds with supply constraints, allowing planners to evaluate whether existing water resources can sustain current and projected uses. The bill represents a procedural and planning-focused approach to data center water consumption, establishing baseline transparency without implementing taxes, fees, restrictions, or development incentives. As legislation enacted during the 2026 assembly session, it is now law and begins shaping how Virginia collects and reports water usage information for future resource planning decisions.

Virginia's recently approved legislation amends state water reporting requirements to include specific tracking of water consumption by data centers alongside other major water users. The bill requires water supply utilities that provide water to data centers to report both potable water and reclaimed water volumes separately in their regular reports to the state Board, using the state's specified data format and coordinate system. This change applies to water providers serving data centers that have obtained air permits from Virginia's Department of Environmental Quality, effectively creating a new category of water use data collection distinct from general commercial and industrial water consumption. The legislation does not restrict data center development or impose usage limits, but rather establishes transparency mechanisms for regulators and planners to monitor how much water this growing industry segment consumes across Virginia's river basins. With an effective date of July 1, 2026, the bill gives water utilities and data centers approximately one year to prepare their reporting systems and procedures to comply with the new requirements. This development reflects Virginia's broader efforts to manage water resources across major river basins amid increasing competition for water supplies from various industrial, agricultural, and residential users.

Senate Bill 521, introduced in Virginia's 2027 session, would require all new data centers and those undergoing substantial expansions of more than 10 percent to install and maintain rainwater harvesting systems capable of capturing at least 30 percent of roof runoff for non-potable uses such as irrigation or cooling systems. The bill defines data centers broadly to include facilities housing servers, network equipment, power management systems, and related infrastructure, and it mandates that any installed rainwater harvesting system be designed, installed, and periodically inspected by a person certified by the American Society of Sanitary Engineering to meet safety and performance standards. For the data center industry in Virginia, this requirement could add significant capital and operational costs to new projects and major expansions, as companies would need to incorporate water collection infrastructure into facility designs and submit to ongoing inspection regimes. The legislation is currently continued from the previous session and has been referred to the Senate Committee on Agriculture, Conservation and Natural Resources, meaning it remains in the early stages of consideration. The bill represents an attempt to reduce water consumption and environmental impact in the data center sector through mandatory conservation infrastructure, though industry representatives may argue that the requirement lacks exemptions or financial incentives and could discourage data center investment in the state. Virginia's status as a major hub for data center development makes this proposal particularly consequential for future facility expansion in the region.

Senate Bill 336 directs Virginia's State Corporation Commission to study the potential impacts of restricting data centers' use of Tier 2 diesel generators in favor of cleaner Tier 4 or equivalent generators. The bill specifically asks the Commission to evaluate whether data centers should be limited to using Tier 2 generators only during sudden, unforeseeable power outages and to assess the feasibility of requiring data centers to retrofit at least 20 percent of their Tier 2 generator fleet annually until all emissions meet Tier 4 standards. The Commission's evaluation will also examine how other states regulate data center generators, compare data center regulations to those applied to hospitals and public universities in Virginia, and weigh both the environmental benefits and fiscal costs of such restrictions. This legislation matters because data centers have become major economic drivers and power consumers in Virginia, and stricter generator requirements could significantly increase operational costs and affect the competitive appeal of the state for data center investment and expansion. The bill, which was continued from a previous legislative session and is now in the 2027 session as a Senate substitute, requires the State Corporation Commission to submit its findings and recommendations to relevant legislative committees by October 15, 2026. The study's outcome will likely influence whether Virginia pursues regulatory changes that balance environmental concerns with the practical and financial needs of the data center industry.

House Bill 641, introduced in January 2026 and currently referred to the Finance Committee, would establish Virginia's Great Outdoors Act and create a new "data center land conservation tax" designed to generate at least $250 million annually beginning July 1, 2028. The revenues collected from this tax on data center operations would be distributed to fund land preservation, public recreational access, working farm and forest conservation, and a newly created Virginia Tribal Commitment Fund to support tribal nation building and land acquisition. This legislation directly affects data center operators and developers in Virginia by imposing a significant ongoing financial obligation tied to their operations, potentially increasing the cost of establishing or expanding data center facilities in the state. The bill also modifies existing land preservation tax credits available to individuals and corporations who donate land for conservation purposes, broadening the eligibility criteria. For the data center industry, this tax represents a material operational cost that could influence investment decisions and competitiveness compared to other states with lower regulatory burdens on such facilities. The bill's continuation from the previous session and current committee assignment suggest it remains active in the legislative process, with potential for further action in the current session.

Senate Bill 93, introduced in Virginia's 2027 session, proposes amendments to the state's tax code regarding bank franchise tax, retail sales and use tax, and tangible personal property tax, with implications for data centers. The bill text excerpt provided shows extensive revisions to Section 58.1-609.3 of the Virginia Code, which governs commercial and industrial exemptions from sales and use taxes, though the specific provisions relating to data centers and banks as tenants are not visible in this truncated portion of the legislation. Based on the bill's title referencing taxes on banks that are tenants of data centers, the measure likely addresses how financial institutions operating within data center facilities are taxed, though the operative details remain unclear from the available excerpt. The bill was referred to the Senate Committee on Finance and Appropriations and is continuing from a previous legislative session, suggesting ongoing deliberation among policymakers. For Virginia's data center industry, which has become increasingly significant economically, the final language of this bill could affect the cost structure and competitiveness of data center operations by determining whether tenant financial institutions receive favorable tax treatment. Understanding the full text will be important for stakeholders in the tech and financial sectors to assess whether this legislation creates incentives for data center development or merely clarifies existing tax obligations.

Senate Bill 466, introduced in Virginia's 2027 session, proposes amendments to the state's electric utility rate-setting framework to address cost recovery mechanisms specifically for utilities serving data center customers. The bill modifies Section 56-585.1 of the Virginia Code, which governs how the State Corporation Commission reviews and sets rates for investor-owned electric utilities, by creating provisions that allow utilities to recover infrastructure and service costs associated with this specialized customer class. Data centers represent a growing but distinct customer segment requiring substantial and often customized electrical infrastructure investments, and the bill aims to ensure that utilities can recoup these costs and maintain adequate profit margins without imposing those expenses on residential and other traditional customer classes. The measure affects Virginia's major investor-owned utilities and has implications for the state's ability to attract and retain data center development, which has become increasingly important to regional economic development given the sector's growth and capital intensity. Currently continued from the previous legislative session and referred to the Senate Commerce and Labor Committee, the bill's progression will depend on committee deliberations and broader policy considerations around utility regulation and industrial economic development in Virginia. The medium-confidence pro-sentiment classification reflects that while the bill facilitates data center infrastructure development through cost recovery certainty, its broader impacts on overall rate structures and consumer costs remain subject to debate.

House Bill 1515 would establish a temporary moratorium on local data center approvals in Virginia by prohibiting localities from granting final approval for new data center development projects until either July 1, 2028, or until all pending utility interconnection requests from data centers are fulfilled, whichever comes first. The moratorium would apply to all forms of local land use approvals including rezonings, special exceptions, special use permits, site plans, and plans of development. This legislation would significantly impact data center companies seeking to expand operations in Virginia and localities that depend on data center tax revenue and economic development, while potentially addressing concerns about electricity grid strain and interconnection backlogs that have accumulated in the state. The bill was introduced on January 23, 2026, by Delegate Shin and has been referred to the Committee on Rules, where it was continued from the previous legislative session. For industry professionals and developers, this moratorium represents a substantial constraint on project timelines, while for affected communities and environmental advocates, it may provide time to assess and manage the impacts of rapid data center growth on local infrastructure and resources. The bill's ultimate passage and implementation would depend on committee action and approval by both chambers of the Virginia General Assembly.

House Bill 503, introduced in January 2026, would amend Virginia's electric utility rate-setting law to address cost recovery for utilities serving data center customers. The bill modifies § 56-585.1 of the Virginia Code, which governs how the State Corporation Commission determines fair rates of return for investor-owned electric utilities and their generation, distribution, and transmission services. While the excerpt provided shows the existing regulatory framework rather than the specific amendments being proposed, the bill's title and purpose indicate it seeks to clarify or expand how utilities can recover costs that are substantially related to serving data center operations, a growing concern as major technology companies establish computing facilities in Virginia. Data centers consume significant amounts of electricity and may require dedicated infrastructure investments, making cost allocation between data center customers and other ratepayers an important policy question. The bill is currently in the House Committee on Labor and Commerce following its introduction, and its trajectory will depend on whether the proposed amendments are viewed by stakeholders as fairly balancing utility investment recovery against customer rate impacts. For industry observers, this legislation may signal Virginia's intent to clarify the regulatory environment for large industrial electricity customers in the data center sector.

This Virginia bill establishes a mechanism for localities with significant data center activity to capture and redirect tax revenue growth from those facilities into residential renewable energy programs. Under the proposed legislation, any county, city, or town hosting at least 20 data centers would be required to adopt an ordinance creating a local residential renewable energy incentive fund, into which would flow the incremental tax revenue generated when data center property assessments increase beyond their baseline values established on July 1, 2026. The funds collected would be used first to reduce residential utility bills, then to invest in residential solar energy and battery storage systems, with at least 15 percent of new data center revenue dedicated to these renewable energy investments. The bill affects both data center operators and residential communities, as it ties data center taxation to community benefits while potentially making data center development more politically palatable to host localities by converting tax gains into direct resident benefits rather than general government revenue. This approach represents a strategy to address community concerns about data center development by ensuring that growth in data center valuations translates into tangible investments in residential clean energy. The bill carries a "continued from last session" status, indicating it did not reach final passage in the previous legislative session and remains under consideration for the 2027 Virginia General Assembly.

House Bill 591 establishes a formal Commonwealth policy to encourage responsible data center operations in Virginia while maintaining grid reliability and affordability. The bill directs state agencies to promote coordination between data centers, state government, and regional grid operators to share information on energy usage and renewable energy deployment; incentivize data centers to participate in demand response programs and implement energy storage systems that reduce peak demand; encourage flexible energy practices aligned with renewable generation availability; ensure large-scale data centers contribute equitably to infrastructure costs without disproportionately burdening residential and small business ratepayers; require data centers to report their energy and water usage and sustainability measures to state and federal agencies; and promote cybersecurity and supply chain security measures to protect Virginia data center operations. The legislation primarily affects the data center industry operating in Virginia, state regulatory agencies responsible for energy and infrastructure oversight, and potentially electricity ratepayers whose costs could be impacted by large-scale data center infrastructure demands. For the data center sector, this bill matters because it codifies state support for the industry while attempting to balance that support with protections for grid stability, renewable energy integration, and equitable cost allocation. The bill was engrossed in the 2027 session with amendments as of February 16, 2026, and has been referred to the House Committee on Labor and Commerce, where it awaits further action after being continued from a previous legislative session.

Senate Bill 393, titled Virginia's Great Outdoors Act, would establish a dedicated "data center land conservation tax" designed to generate at least $250 million annually starting July 1, 2028, with revenues directed toward land preservation and conservation efforts across the Commonwealth. The tax would be imposed specifically on data center operations, creating a new financial obligation for the industry while establishing funding mechanisms for protecting ecologically important lands, recreational areas, working farms and forests, and tribal lands. A portion of revenues would be allocated to a newly created Virginia Tribal Commitment Fund to support tribal nation building, cultural revitalization, and land acquisition by Virginia tribes. The bill, sponsored by Senators Perry and Stuart and introduced January 14, 2026, has been referred to the Committee on Agriculture, Conservation and Natural Resources and continued from the previous legislative session, suggesting it remains under consideration but has not yet advanced to a floor vote. For the data center industry in Virginia, which has experienced significant growth in recent years, this measure represents a substantial new operating cost that would effectively tie development of data center facilities to environmental and cultural conservation funding. The bill's current status as "continued from last session" indicates ongoing deliberation, with its passage uncertain pending committee review and broader legislative debate over whether to impose this targeted tax on a specific industry sector.

House Bill 607 would require Virginia's Department of Environmental Quality to conduct a comprehensive three-year study examining cumulative air pollution from data center generators across areas with high concentrations of such facilities. The study would model four operational scenarios including planned outages, grid-strain events, demand response usage, and primary power supply operation, while analyzing maximum emissions compared to 2025 baseline levels. The Department would be required to assess pollution impacts on sensitive populations including children, elderly residents, hospital patients, and environmental justice communities, while considering how pollutant dispersion, timing of generator operation, and different fuel types affect public health outcomes. The findings and recommendations regarding future handling of minor air permits for data center generators and the need for increased air quality monitoring must be reported to legislative committees by October 1, 2029. This bill reflects growing concern about whether current permitting processes adequately account for the combined effects of multiple generators operating simultaneously in data center-dense regions, particularly in areas already experiencing air quality challenges. The legislation's focus on cumulative impacts and vulnerable populations suggests that policymakers may be considering stricter regulations or modified permitting standards for data centers based on the study results.

Engrossed Substitute Senate Bill 6231 removes Washington State's tax exemptions for data center equipment replacements and power infrastructure upgrades, a significant policy shift aimed at increasing state general fund revenue. The bill modifies existing exemption statutes by preventing new exemption certificates from being issued for data center refurbishments after July 1, 2026, while allowing previously issued certificates to remain valid until their expiration dates, with the overall exemption program itself ending on July 1, 2048. The legislation affects qualifying data center operators and tenants who have historically benefited from sales tax breaks on eligible server equipment, power systems, and related installation labor and services. For Washington's data center industry, this change increases operational costs for companies planning facility expansions or equipment replacements, potentially making the state less competitive for new data center investments compared to other jurisdictions with more favorable tax treatment. The bill reflects the legislature's determination that long-standing tax preferences for data centers, which have existed largely unchanged for years, should be eliminated to support essential state services rather than continue as what legislators describe as preferential treatment for private interests. As of the latest action on February 23, 2026, the bill has been introduced and is proceeding through the legislative process, with an effective date scheduled for June 11, 2026.

House Bill 4983 authorizes the West Virginia Department of Commerce to promulgate and enforce a legislative rule governing the certification of high impact data centers and microgrid districts in the state. The bill became effective upon passage in March 2026 and represents the legislature's formal approval of regulations (145 CSR 20) that the Department of Commerce had previously filed, subject to one amendment requiring that data center certification standards address both the "use or access of water." This regulatory framework creates a formal pathway for data centers to obtain state certification as "high impact" facilities, which typically unlocks various economic development incentives and expedited permitting processes. For the data center industry, this legislation streamlines what had been a less certain approval process by establishing clear rules and criteria for certification, potentially attracting new investment and development projects to West Virginia. The bill also authorizes a separate rule for Tourism Development Districts, indicating a broader effort by the state to formalize economic development policies. With the rule now legislatively authorized and in effect, data centers operating or planning operations in West Virginia can proceed under this established regulatory framework.

Assembly Bill 722 would impose significant new requirements on large-scale data center development in Wisconsin, including mandatory prevailing wage standards for construction workers, renewable energy mandates, and green building certifications. The bill defines a large-scale data center as a facility of at least 25,000 square feet with total construction and equipment costs exceeding $250 million over any 60-month period, and would require workers on such projects to earn either the federal prevailing wage under the Inflation Reduction Act or their collective bargaining agreement rate, whichever is higher. Data centers seeking state tax exemptions would additionally need to source at least 70 percent of their annual electricity from renewable resources and obtain green building certification within three years of opening. The legislation also establishes new water usage reporting requirements, mandating that water utilities notify the Public Service Commission when a single customer (such as a data center) would account for 25 percent or more of a utility's total water usage. As of early December 2025, the bill has been introduced with substantial bipartisan sponsorship from Assembly representatives and co-sponsored by multiple state senators, and has been referred to the Committee on Energy and Utilities. These provisions represent a substantial regulatory shift for Wisconsin's data center industry, potentially affecting site selection decisions and project economics for major facilities considering the state.

Senate Bill 729 would establish several new regulatory requirements for data centers operating in Wisconsin, along with rules governing large energy customers of electric utilities. The bill requires laborers and mechanics constructing or refurbishing large-scale data centers (defined as projects costing at least $250 million) to be paid prevailing wage rates as defined under federal law, with workers covered by collective bargaining agreements receiving whichever is higher between the prevailing wage and their union contract rate. Additionally, data centers seeking sales and use tax exemptions through the Wisconsin Economic Development Corporation would need to source at least 70 percent of their annual electricity from renewable resources and meet prevailing wage requirements. The bill also mandates that all data center operators certify within three years of opening that their facilities meet specified green building or sustainable design standards, and requires water utilities to notify the Public Service Commission when new or existing customers plan to use water representing 25 percent or more of the utility's total consumption. Introduced in December 2025 with broad bipartisan sponsorship in the Senate and Assembly, the bill has recently gained an additional House cosponsor and is currently under review by the Committee on Utilities, Technology and Tourism. These requirements collectively represent a significant regulatory shift that would increase development costs and compliance obligations for data center projects in the state.