Commission flags water, grid-interconnection and tariff issues in data-center draft

Sep 22, 2026

As it reviewed Text 2601, the commission asked staff to clarify how closed-loop cooling and recycled/nonpotable water requirements would be enforced and whether grid interconnection upgrade costs or tariffs could be shifted to local customers for centers below state thresholds.

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Commission members raised technical and regulatory concerns about water use and grid interconnection in the draft data-center ordinance. Members asked whether closed-loop cooling would be required, how water source (river, aquifer, recycled/nonpotable) would be specified in a CUP, and whether interconnection upgrade costs could be passed along to local ratepayers for projects under state thresholds.

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