Delaware House passes data center regulation bill along party lines

The Delaware House of Representatives recently passed House Bill 310, sponsored by Rep. Debra Heffernan, a significant piece of legislation aimed at regulating large data centers. The bill prohibits energy facilities using 30 megawatts or more, equivalent to powering approximately 30,000 homes, from receiving state tax credits based on job creation. This measure addresses concerns that data centers, while consuming substantial energy, create few permanent "blue-collar" jobs, thus undermining the intent of such tax incentives. The passage of HB 310, primarily along party lines with Democrats voting in favor and Republicans against, follows debate within the House. Rep. Heffernan highlighted the low long-term employment impact of data centers, while Rep. Jeff Hilovsky and Rep. Lyndon Yearick expressed concerns that such regulations could deter economic development and potential self-generating energy facilities from choosing Delaware. Several other proposals are also under consideration in the Delaware legislature. House Bill 233, sponsored by Rep. Frank Burns, seeks to mandate separate electricity rates for facilities consuming 20 MW or more, aiming to prevent residential customers from subsidizing data centers' energy costs and protect the state's electric grid. In the Senate, Sen. Stephanie Hansen introduced Senate Bill 276, which passed unanimously and exempts electric cooperatives from supplying power to users demanding over 50 MW monthly. Her second proposal, Senate Bill 205, would require companies using 100 MW or more to obtain an operating certificate from the Delaware Public Service Commission. These legislative efforts collectively signify a growing focus on the economic and environmental impacts of data center development in Delaware.