Delaware governor signs legislation that aims to make data centers ‘pay their fair share’
Delaware Governor Matt Meyer signed new legislation requiring data centers to generate their own "clean" energy and preventing them from passing electricity costs onto ratepayers. The law also blocks data centers from receiving job creation tax credits, aiming to ensure responsible growth without burdening residents or the electric grid.
Delaware Governor Matt Meyer signed a package of legislation on Wednesday designed to protect ratepayers from the increasing energy demands of data centers. The new laws prohibit data centers from shifting the costs associated with powering and upgrading their facilities onto consumers and mandate that these centers generate their own "clean" energy to alleviate strain on the electric grid.
Furthermore, the legislation prevents data centers from receiving tax credits for job creation. Governor Meyer emphasized that while Delaware supports innovation and economic growth, it must be responsible, stating, "Data centers that do not pay their fair share do not belong in our communities." He added that data centers cannot jeopardize grid reliability and ratepayers should not subsidize their energy consumption.
The article notes that PJM Interconnection, which manages the region's electric grid, has previously cited the rise of data centers as a contributor to increasing electricity bills.