Delaware Lawmakers Debate Bills to Regulate Data Center Electricity Use

Delaware lawmakers are actively debating two significant pieces of legislation aimed at regulating data centers to mitigate their impact on state electricity prices and the power grid. These discussions follow Governor Matt Meyer's call for utility providers to freeze rates and widespread concerns over rising energy costs for residents.

One bill, introduced by Representative Frank Burns, proposes establishing a separate, higher utility rate for large energy-use facilities, including data centers, to prevent them from disproportionately increasing residential electricity costs. The Public Service Commission would determine this rate based on factors like grid risk and renewable energy use. Burns highlighted projections that data centers could significantly increase wholesale electricity prices by 2029 if unregulated, and his bill aims to address this proactively before more projects develop.

The second bill, from Representative Debra Heffernan, mandates that data centers generate their own renewable energy over a 10-year period to reduce their reliance on the state's grid. An amendment to this bill allows data centers to consolidate power generation efforts with other large energy facilities or utilize existing or deactivated sites, an approach favored by environmental advocates like the Sierra Club for its reduced environmental footprint.

Both bills successfully passed the House, despite some Republican objections regarding last-minute amendments to Burns' bill and concerns about its broader impact on other large industrial users. They now proceed to the Senate for further deliberation, where they are expected to face additional scrutiny, particularly in the Senate's Environment, Energy, and Transportation Committee. Stakeholders like the Plumbers and Pipefitters Local Union 74 have voiced concerns that increased restrictions could deter data center development and job creation in Delaware.