North Dakota PSC Clarifies Limited Regulatory Authority Over Data Centers

The article, an opinion piece by North Dakota Public Service Commissioner Sheri Haugen-Hoffart, clarifies the PSC's limited regulatory authority over the state's rapidly growing data center industry. Haugen-Hoffart explains that while data centers demand vast amounts of electricity, requiring new transmission lines, substations, and power generation, the PSC's direct jurisdiction lies primarily with the investor-owned utilities (Montana-Dakota Utilities, Otter Tail Power, and Xcel Energy) and the energy infrastructure serving these facilities. She emphasizes that the PSC does not regulate the data centers themselves, including their location, operational impacts, or noise. A recent attempt to expand the PSC's power, House Bill No. 1579, which would have granted direct authority over data center siting, was withdrawn during the 2025 Legislative Session. Currently, a legislative management committee is studying the impacts of large energy consumers, including data centers, on the state's electrical grid, regulatory structure, and economic development. Haugen-Hoffart reiterated that new infrastructure built specifically for data centers served by investor-owned utilities must be paid for by the data center customer, not passed on to general ratepayers. She concluded by stating that the PSC's role remains focused on regulating the power systems and utilities that enable data centers, rather than the facilities themselves.