US state drafts plan for data center regulations

Many US data center operators have remained complacent about the potential for regulations being imposed in the US. The recent change in the federal administration has reinforced the view that, unlike in Europe, regulatory requirements on data centers are not imminent.

State-level legislators are, however, becoming increasingly active. Data center reporting and performance requirements have been proposed but not passed in Oregon and Virginia. In December 2024, legislation was introduced in the New York Senate, setting requirements including pre-construction and operational information disclosure, specific quantities of renewable energy consumption, and subsidies to residential electricity consumers. Although the bill (Senate Bill S9960: regulation of energy consumption by data centers) is listed as “introduced – dead” on a legislation tracking website, the broad reach of its requirements should alert data center operators to the potential for future regulatory proposals.