Bills would require, incentivize Delaware data centers to bring their own power
Delaware legislators are considering two bills, HB 233 and HB 445, to regulate data centers' energy consumption due to concerns about rising electricity demand and resident bills. HB 233 proposes prioritizing data centers for power cuts and requiring them to cover full energy costs, while HB 445 mandates data centers generate their own power, partially from renewable sources. The legislation faces opposition from business groups fearing it will deter industry growth, though public advocates support it to protect ratepayers.
Delaware legislators are rushing to pass two bills, House Bill 233 and House Bill 445, aimed at regulating the energy consumption of data centers before the current legislative session concludes. The proposed legislation stems from concerns that the burgeoning number of energy-hungry data centers, driven by the demand for artificial intelligence, could strain the state's regional electric grid, potentially doubling Delaware's electricity usage and increasing residents' energy bills.
House Bill 233, sponsored by Rep. Frank Burns and Sen. Stephanie Hansen, has been amended to prioritize data centers for power cuts during blackouts unless they incorporate their own energy generation. It also mandates that data center developers enter into service agreements to ensure they cover the full costs of their energy consumption, including potential transmission upgrades. This bill, which has already passed a committee, would grant the Public Service Commission and utilities leverage to deny grid connections if agreements cannot be reached.
Meanwhile, House Bill 445, introduced by Rep. Debra Heffernan, proposes requiring data center developers to supply all their power within 10 years of operation, with a portion derived from renewable sources. While Public Advocate Jameson Tweedie supports both bills as crucial for stabilizing electricity prices and preventing dramatic risks to ratepayers, business lobbyists and union representatives, including the New Castle County Chamber of Commerce, staunchly oppose them. Critics argue the legislation could deter the data center industry from investing in Delaware, with Rep. Jeff Hilovsky stating it signals "Delaware is not open for business." The legislature has only 10 days remaining to consider these bills.