PROVIDENCE – House Speaker Pro Tempore Brian Patrick Kennedy, D-Hopkinton, has introduced legislation aimed at regulating data centers in Rhode Island in an effort to address growing concerns over electricity costs and environmental impact.
The bill seeks to prevent data center operators from transferring their electricity expenses to residential and business customers.
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Under the proposed law, any facility classified as a “data center,” which utilizes computer servers and related technology for the storage, processing, or transmission of digital information and has an electricity demand exceeding 50 megawatts, will be required to cover all costs associated with its electricity infrastructure. This includes expenses related to planning, construction, expansion, operation and maintenance of necessary electricity generation, transmission and distribution facilities, thereby shielding consumers from additional costs.
The legislation also calls for electricity companies to establish specific rate classes or contracts for these data centers and mandates that the Energy Facility Siting Board collaborate with the R.I. Public Utilities Commission to assess ratepayer impacts and cost allocations related to such facilities before approvals can be granted.
Data centers would also need to report their annual water usage, cooling methods and recycling practices to the R.I. Department of Environmental Management, which may impose requirements for water efficiency plans and financial assurances for site restoration. This legislation aims to enhance accountability and sustainability in Rhode Island’s growing data center industry.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
