Washington Approves Data Center Rules

• Data center threshold: Regulations apply to facilities using 20 megawatts or more of power[5] • Grid impact requirements: Centers must reduce power consumption on-demand during periods of grid strain[1][2] • Infrastructure cost allocation: Data centers must cover entire costs of connecting to electrical grid, including necessary system upgrades[1] • Financial assurances: Legislation incorporates exit fees and financial guarantees to prevent utilities and customers from absorbing costs if a data center reduces operations or closes[1] • Reporting mandates: Facilities must submit reports detailing energy consumption, emissions, and cooling technologies[2] • Clean energy timeline: Extended requirement for data centers to use emissions-free electricity by 2045 (originally proposed 2035)[2]

The legislation reflects growing tension between Washington's climate goals and economic development ambitions. Proponents argue the regulations protect residential ratepayers from absorbing infrastructure costs as data center demand surges due to AI expansion[1][3]. However, Republicans warn the regulatory burden could drive investment to neighboring states with more favorable energy policies, potentially impacting rural economies that depend on data center jobs[3]. The bill's passage signals a broader national trend: a federal counterpart, the Power for the People Act introduced by Senator Chris Van Hollen (D-Md.), proposes similar requirements at the national level, indicating data center cost-shifting has become a bipartisan concern across multiple states[4]. If approved by the Washington Senate, this legislation could establish a model for other states managing rapid data center expansion.