Data Center Clean Energy Laws
Laws, regulations, and incentive programs that require data centers to procure, generate, or bring clean energy — enacted, proposed, and failed — across 13 states plus federal proposals.
As of 2026-10-02 · changes weekly — re-check before citing
Laws, regulations, and incentive-tied requirements that mandate or condition benefits on data centers procuring clean energy. Per-row source + as_of. Includes enacted mandates, incentive programs, regulatory orders, proposed and failed bills, federal proposals, and one international comparison (Ireland). Legislative sessions move fast — verify status before citing at a hearing.
Enacted laws & regulations
Laws and regulatory orders currently in effect — including mandates (must comply to operate or connect), incentive-tied requirements (must comply to keep tax breaks), and regulatory orders (PUC/PSC rulings).
California — SB 57
Enacted Mandate Data-center specific | 2025 | Verified: 2026-10-02
All retail electricity delivered to tariffed data centers must come from 100% zero-carbon resources by January 1, 2030. Must not result in resource shuffling or increase carbon emissions elsewhere in the western grid.
California — AB 2383 + 6-bill package
Enacted Mandate Data-center specific | 2026 | Verified: 2026-10-02
Seven-bill package: data centers must comply with state clean energy procurement requirements and pay incremental generation costs for at least 10 years. AB 1577 creates CEC reporting obligations (PUE, fuel consumption). Additional water and land-use oversight.
New Jersey — S731 / A796
Enacted Mandate Data-center specific | 2026 | Threshold: 100.0+ MW | Verified: 2026-10-02
Data centers with 100+ MW peak demand must bring their own new clean energy, pay for grid upgrades, commit to covering at least 85% of requested electrical service for minimum 10 years, and reduce or shift energy use during periods of high grid stress. Creates a separate utility rate class for large-load data centers.
Oregon — HB 3546 / POWER Act
Enacted Mandate Large energy users (incl. DCs) | 2025 | Threshold: 20.0+ MW | Verified: 2026-10-02
Large energy users (20+ MW) must enter 10-year power-purchase agreements, pay for projected energy use and new transmission infrastructure, install on-site zero-carbon energy storage, and participate in demand response programs. Creates a separate rate class. PUC renewable energy requirements before coming online.
New York — S6394A / Responsible Data Center Development Act
Enacted Mandate Data-center specific | 2026 | Threshold: 5.0+ MW | Verified: 2026-10-02
Data centers with 5+ MW peak load must derive 33% of electricity from renewable energy 2030-2034, 67% from 2035-2039, and 90% by 2040 and after. Must derive as much energy as feasible from on-site renewable generation. Prohibits incentives for fossil fuel PPAs. Governor also issued executive order for 1-year moratorium on hyperscale DCs (50+ MW).
Illinois — SB 1591 / Data Center Investment Program
Enacted Incentive-tied Data-center specific | 2019 | Verified: 2026-10-02
To receive up to 20 years of state/local sales and use tax exemptions, data centers must become carbon neutral or obtain green building certification within 2 years of entering service. Requires $250M+ investment over 5 years and 20+ new FTE jobs. New entrants paused July 2026 by Gov. Pritzker.
Michigan — SB 237 / HB 4906 (Public Act 207 of 2024)
Enacted Incentive-tied Data-center specific | 2024 | Verified: 2026-10-02
Data centers must source 90% of electricity from clean or renewable energy to claim sales and use tax exemptions. Extended through December 31, 2050.
Minnesota — HF 16 (Chapter 12, 2025 1st Special Session)
Enacted Incentive-tied Data-center specific | 2025 | Threshold: 100.0+ MW | Verified: 2026-10-02
Qualified large-scale data centers must obtain green building certification (LEED, Energy Star, ISO 50001) within 3 years. Annual fees of $2M-$5M based on peak demand (100-750+ MW) fund low-income energy conservation. Utilities must offer voluntary clean energy tariffs to commercial and industrial customers.
Michigan — 2023 Clean Energy Law
Enacted Mandate Economy-wide | 2023 | Verified: 2026-10-02
60% renewable by 2035, 100% low-carbon by 2040 for all utilities. Applies to data center load like any other customer.
Michigan — MPSC Large Load Order
Enacted Regulatory order Large energy users (incl. DCs) | 2026 | Threshold: 100.0+ MW | Verified: 2026-10-02
Any new customer with 100+ MW single-site load must sign 15-year contracts, pay for 80% minimum of agreed usage, and pay exit fees. Pushes grid infrastructure costs to data center developers.
Maryland — Utility RELIEF Act
Enacted Mandate Data-center specific | 2026 | Verified: 2026-10-02
Data centers must pay for electric grid upgrades and register with the Public Service Commission. Creates a first-of-its-kind rate class specifically for data centers. Prevents cost-shifting to residential ratepayers.
Georgia — PSC Large Load Order + Customer Identified Resource Program
Enacted Regulatory order Large energy users (incl. DCs) | 2025 | Threshold: 100.0+ MW | Verified: 2026-10-02
Customers drawing 100+ MW must operate under customized contracts, not standard rates. The Customer Identified Resource program lets large customers propose and fund their own clean energy projects for bill credits, up to 3 GW through 2035. Not a mandate — an opt-in pathway.
Ireland — CRU Large Energy User Connection Policy
Enacted Mandate Data-center specific | 2025 | Verified: 2026-10-02
Data centers must meet at least 80% of annual energy demand with additional renewable electricity projects generating in Ireland. 6-year glide path. Above 10 MVA, must provide on-site or proximate generation at 100% of grid connection capacity.
Proposed & pending
Bills introduced but not yet enacted. Status can change within a session — verify before citing.
Illinois — POWER Act
Proposed Proposed Data-center specific | 2026 | Verified: 2026-10-02
Would require hyperscale data centers to pay for their own energy from renewable sources, report water usage, and negotiate community benefit agreements.
Connecticut — HB 5469
Proposed Proposed Large energy users (incl. DCs) | 2026 | Threshold: 50.0+ MW | Verified: 2026-10-02
Any electric customer with 50+ MW peak demand must either contract with a colocated electric supplier or demonstrate it can supply its full anticipated load from a new generation source (bring your own power).
New Jersey — S680
Proposed Proposed Data-center specific | 2026 | Threshold: 100.0+ MW | Verified: 2026-10-02
Would require new AI data centers and crypto mining facilities to source electricity exclusively from renewable energy or newly constructed nuclear. BPU-reviewed energy plan before project approval. Applies to facilities over 100 MW.
South Carolina — H. 4583
Proposed Proposed Data-center specific | 2026 | Verified: 2026-10-02
Would revoke all tax incentives and exemptions for incoming data centers and require data centers to be entirely energy independent.
Federal — GRID Act (S. 3852)
Proposed Federal Data-center specific | 2026 | Threshold: 20.0+ MW | Verified: 2026-10-02
New data centers (20+ MW) must derive all energy, including backup, from on-site or non-grid sources. Existing facilities get 10-year transition. Civil penalties up to $1 million per day. Bipartisan: Sens. Blumenthal (D-CT) and Hawley (R-MO).
Federal — DATA Act
Proposed Federal Data-center specific | 2026 | Verified: 2026-10-02
Would exempt fully off-grid power suppliers from the Federal Power Act and DOE regulation — enables but does not require clean energy. Sen. Tom Cotton (R-AR).
Federal — Data Center Water and Energy Disclosure Act
Proposed Federal Data-center specific | 2026 | Verified: 2026-10-02
Transparency only — requires data centers to report energy and water consumption. No clean energy mandate. Sen. Dick Durbin.
Failed & expired
Bills that were voted down, died in committee, or expired without action. Listed because they show the direction of debate and often return in revised form the next session.
Connecticut — HB 5076
Failed Failed Data-center specific | 2025 | Verified: 2026-10-02
Would have required AI data centers to derive at least 50% of energy from renewable sources, implement energy storage, and adopt water conservation.
Washington — HB 2515
Failed Failed Large energy users (incl. DCs) | 2026 | Threshold: 20.0+ MW | Verified: 2026-10-02
Would have required 80% clean electricity by 2031 and 100% by 2046 for qualifying large energy facilities (20+ MW). Required clean energy procurement, cost-shifting protections, and demand response. Passed House 51-41, died in Senate.
Virginia — HB 155 and 2026 session bills
Failed Failed Data-center specific | 2026 | Threshold: 25.0+ MW | Verified: 2026-10-02
HB 155 would have required SCC review of whether large users (25+ MW) contracted sufficient renewable energy. Other proposals would have required zero-carbon procurement on an accelerated RPS schedule. Legislature ended session without passing clean energy requirements; imposed $600M electricity-use tax instead.
Oregon — HB 2816
Failed Failed Data-center specific | 2023 | Verified: 2026-10-02
Would have required data centers to demonstrate 60% carbon-free power by 2027, 80% by 2030, 90% by 2035, and 100% by 2040. Killed in committee; the POWER Act (HB 3546) was its successor.
Key distinctions
True mandates (California SB 57, New Jersey S731, Oregon POWER Act): data centers must procure or generate clean energy as a condition of operating or connecting to the grid.
Incentive-tied requirements (Illinois, Michigan): data centers can operate without clean energy but lose substantial tax exemptions if they don't meet the threshold.
Cost-allocation orders (Georgia PSC, Michigan MPSC, Maryland RELIEF Act): don't mandate clean energy directly, but prevent cost-shifting to residential ratepayers — which removes the subsidy that made fossil-powered operation artificially cheap.
See also: Model CBA clauses | AI & Data Center Legislation | Moratorium tracker