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Multiple data-center provisos carried over as senators seek common definition and water-use reporting
Summary
Senators introduced and debated several data-center-related amendments: banning Department of Commerce state incentives for new data-center recruitment, requiring water-use reporting for large facilities, and drafting a study/audit proviso for high-profile projects; members agreed to carry data-center amendments over to reconcile definitions and fiscal impacts.
A cluster of amendments addressing data centers drew sustained floor attention and were carried over so authors and staff can develop consistent definitions and fiscal language.
Senator Sutton proposed a proviso that would bar the Department of Commerce and the Coordinating Council for Economic Development from using state incentives to recruit new data-center projects prospectively and would require a report on previously granted incentives by Jan. 15, 2027. Sponsors said the measure was a short-term stopgap pending comprehensive legislation and drew several cosponsors (SEG 5396-5416, 5420-5432).
Other sponsors proposed that large data centers report their water consumption annually to environmental regulators if they exceed a defined monthly threshold (3,000,000 gallons per month was discussed as a reporting trigger). Senators debated whether 10-megawatt or megawatt-based thresholds, rather than general functional definitions, would better identify facilities likely to stress local utility and water systems (SEG 5936-6006).
Floor sponsors and questioners repeatedly said counties often negotiate local incentive packages (FILO/fee-in-lieu deals), and several senators asked for clarity on whether county-level incentives or state-level incentives were implicated. Committee chairs and Commerce staff indicated the state had not widely provided incentives for data centers to date; senators asked staff to pull historical incentive records and to work toward a single definition to avoid contradictory budget provisos.
All data-center amendments were carried over as senators requested time to align definitions, verify whether Commerce had previously awarded incentives to data centers, and analyze water and energy infrastructure impacts. Several authors signaled an intent to pursue comprehensive legislation in the next session rather than leave conflicting provisos in the budget.
