Senate committee advances Data Center Development Act amid questions on incentives, water and definitions

The Senate Agriculture and Natural Resources Committee advanced S.867, the Data Center Development Act, after a committee discussion about fiscal impacts, permitting and utility protections.

"S.867 enacts the Data Center Development Act," said Mister Strickland, the bill sponsor in committee, summarizing the measure and its fiscal footprint: "about $500,000 of initial costs and then about $400,000 on an annual basis" for the Department of Environmental Services (DES), and roughly "$200,000 with 1 full time employee" for ORS. He also noted the draft includes a $50,000,000 annual cap on tax credits as written.

The bill would establish a Data Center Development Office within DES, create a permitting process for proposed sites, require annual water and energy reporting, set standards for site efficiency, and require decommissioning plans and financial assurances. The measure divides large-load data centers into tiers by load (Tier 1: 1–10 megawatts; Tier 2: 10–50; Tier 3: above 50), with faster decision timelines for lower tiers.

A subcommittee chair told the committee the subcommittee "never adopted an amendment" and presented the original bill for a full-committee vote, saying the intent was to move a product to the Senate floor so all senators may consider amendments. The chair said members should expect substantial floor amendment activity if the bill reaches the full Senate.

Members pressed several policy points. Senators asked whether the bill precludes economic incentives (the subcommittee chair said it does not) and whether provisions in last week’s budget provisos that required some water-disclosure would overlap with this bill’s reporting requirements. Concerns focused on ensuring that future generation costs and grid impacts would not be borne by residential customers; a senator urged utilities to use tight contracts so data centers "pay their own way" for electric generation.

Committee members also flagged the need for a clear, shared definition of "data center," noting parallel work in another subcommittee and the possibility that differing definitions could sweep in facilities not commonly understood as data centers.

The subcommittee chairman moved a favorable report; the motion was seconded and the committee approved it by a voice/raise-hand vote. The transcript records the outcome as a favorable report but does not record a roll-call tally in the committee record.

The bill now moves to the Senate floor, where members expect additional amendment drafting and negotiation before final passage is decided.