What PSC regulates in data center boom

North Dakota is experiencing a boom in data center development, which brings significant electricity demands and raises questions about regulatory oversight. However, the North Dakota Public Service Commission (PSC), often assumed to regulate these facilities, has very limited direct authority over data centers themselves. The PSC's role is primarily focused on the energy infrastructure that serves data centers. This includes reviewing and approving new high-voltage transmission lines, major upgrades to existing utility infrastructure, and changes in utility rates. The commission regulates three investor-owned utilities in the state: Montana-Dakota Utilities (MDU), Otter Tail Power, and Xcel Energy. When data centers require services from these utilities or new infrastructure, the PSC evaluates impacts on reliability, cost, and the broader electrical grid. Any infrastructure built specifically for a data center by an investor-owned utility must be paid for by the customer, not other ratepayers. Despite this involvement, the PSC has no direct regulatory authority over data center operations. It cannot decide where a data center is built (siting approval), nor does it oversee operational impacts like noise, emissions, or water use. Furthermore, the PSC does not regulate rural electric cooperatives, to which many data centers connect, thus limiting its involvement in those instances. North Dakota's existing regulatory framework was established long before the advent of major energy consumers like data centers. A legislative attempt to expand the PSC's authority, House Bill No. 1579, which would have granted direct siting authority over data centers, was introduced in the 2025 Legislative Session but was ultimately withdrawn. Currently, legislative management is conducting a study on the impact of large energy consumers, including data centers, on the state's electrical grid, regulatory structure, and economic development.