With the proliferation of data center proposals across the U.S., state lawmakers are introducing legislation aimed at addressing, among other things, the costs, energy use and potential environmental impacts of data centers.
California
On Jan. 9, California State Senator Steve Padilla introduced Senate Bills 57 and 58, “two measures designed to provide better protections for California ratepayers from increased costs and the state’s aggressive climate goals as more companies develop data centers to meet the growing energy demands of artificial intelligence,” his office said in a news release.
“It is critical that fostering innovation does not come at the expense of higher costs on ordinary families and compromising our climate goals,” said Padilla in the news release. “California is proud to be the home of Silicon Valley and its pioneers. This legislative package provides the state with the tools it needs to protect ratepayers while still championing that enterprising spirit.”
SB 57, the Ratepayer and Technological Innovation Protection Act, would require the California PUC to establish a special rate structure to protect residential ratepayers and small businesses from the cost of building new transmission lines which supply data centers while meeting the state’s climate goals.
“The rate structure will allow companies to prepay expected energy consumption to accelerate grid interconnection while also ensuring the investments into the grid are fully recovered,” Padilla’s office said.
SB 58 would provide a tax credit to data centers utilizing at least 70% carbon-free energy, at least 50% of the energy supply from behind-the-meter sources, does not use diesel fuel, and utilizes recycled water cooling within five years of the certification effective date. It would also require the facility to use a skilled and trained workforce and an investment of at least two-hundred million dollars.
Throughout the upcoming legislative session, Padilla will be holding a roundtable discussion with all stakeholders to ensure full participation from all parties and effective solutions from the legislation, his office noted.
Both bills will be heard in the Senate in the coming months.
New York State
In New York State, State Sen. Kristen Gonzalez has introduced legislation related to the regulation of energy consumption by data centers.
Among other things, the bill says that where a planned data center is projected to have the capacity to consume five or more megawatts at any given moment, a data center operator “shall submit a data center disclosure report to the public service commission prior to commencing any construction activities related to a data center.”
Virginia
Meanwhile, on Jan. 14, a bipartisan coalition of Virginia state lawmakers unveiled a comprehensive legislative package focused on responsible data center growth in Virginia.
“The reforms address critical issues, including the impact of data centers on energy infrastructure, community well-being, and environmental health,” a news release noted.
“We know data centers are imposing a growing demand on the grid. My legislation will ensure they operate as efficiently as possible and increasingly run on renewable energy.” said Virginia Delegate Rip Sullivan. “I appreciate the many efforts this session that are aimed at balancing the benefits and costs of data centers.”
Read the full article: https://cardinalnews.org/2025/02/25/funding-for-rural-ev-charging-stations-clears-legislature-heads-to-governors-desk/
