Gov. Matt Meyer enacts sweeping data center cost and energy laws
Delaware Governor Matt Meyer has signed four new laws designed to prevent large data centers from passing infrastructure and energy costs to utility customers. The legislation also imposes new clean-energy requirements, mandating data centers produce or secure their own clean electricity. These measures aim to protect residents from higher energy costs and environmental impacts, following a recent rejection of a data center ordinance in Harrington.
Delaware Governor Matt Meyer has enacted four new laws to regulate data center development across the state. The legislation, described by Meyer as providing "the most comprehensive ratepayer and resident protections on data centers in our nation," requires large data center developers to cover their own infrastructure and energy costs, rather than shifting them to Delaware ratepayers.
Key provisions of the package include removing data centers from a state program that offers tax incentives and credits. Additionally, the laws establish a "bring your own power" requirement, mandating that data centers either produce or procure their own clean energy, or face a prohibition on operation within Delaware.
Delmarva Power acknowledged the legislation, stating it strengthens existing protections against cost-shifting to customers. However, the utility also expressed concerns that capital investment caps imposed by one of the bills, SB 326, could force delays in essential projects for maintaining grid reliability, replacing aging equipment, and preparing for growing demand and severe weather. Delmarva Power argued these caps offer minimal customer benefit compared to the risks they pose to grid investment.
The new laws follow the recent rejection of an ordinance in Harrington that would have facilitated data center development within city limits. Concerns raised during that debate included water and sewer capacity, electricity demands, infrastructure strain, noise pollution, and potential community impacts.