Substitute bill would force data centers to shoulder grid, water and cost risks amid sharp debate

Jan 22, 2026

The substitute for HB 25‑15 would require utilities to adopt tariffs or policies to avoid cost shifts from large data centers (20 MW+), mandate reporting on water and energy use, impose clean‑energy targets and create an annual fee; testimony split between environmental and community‑aid advocates supporting the bill and utilities, business groups and labor warning about costs and competitiveness.

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Megan McFadden, staff to the House Environment & Energy Committee, briefed lawmakers on the proposed substitute to House Bill 25‑15, which defines an emerging large energy use facility (ELEUF) as a facility with a maximum aggregate contract demand of 20 megawatts or more that is primarily engaged in data‑center services or virtual currency mining under NAICS codes. The substitute would require utilities to adopt tariffs or policies (or demonstrate why an element is unnecessary) that include long‑term contract provisions (including a 10‑year contract option), charges that cover at least the full cost of serving the facility, curtailment provisions for energy emergencies, and participation in or funding of demand‑response programs.

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