HARRISBURG — A coalition of tech companies, environmental advocates, and business groups is pressing state regulators to require data centers to use renewable energy and to allow corporations to build grid-connected clean power projects. The push comes as the AI boom drives a surge in electricity demand and new natural gas-fired power plants.

Legislation pending before New York Gov. Kathy Hochul would require large data centers to meet renewable energy benchmarks starting in 2030 and source at least 90% of their electricity from renewables by 2040. "We are literally talking about the wealthiest companies in the world that are looking to build in New York state, and if they have the resources to put billions of dollars into data center development, then they certainly should have the resources to build out renewable energy sources to power them," said New York State Senator Kristen Gonzalez.

Michigan, Oregon, and Minnesota have enacted laws in the last 18 months mandating that electric utilities rely solely on emissions-free energy by 2040. Michigan separately requires hyperscale data centers to meet a 90% clean energy standard within six years to qualify for a sales tax exemption. Minnesota and Oregon have also directed regulators to ensure data center energy supply aligns with state emissions goals.

Similar bills are advancing in California, Illinois, New Jersey, Pennsylvania, and Virginia. "We just can’t do business as usual with a demand at this scale and facilities of this scale because the impacts are massive," said California State Senator John Padilla.

Colorado regulators ordered Xcel Energy to create a program enabling large power users to build clean energy projects tied to the grid. Xcel Energy agreed in an April filing that such a program could benefit customers, citing Google projects in Nevada and Minnesota that connect 115 megawatts of geothermal energy and 1,900 megawatts of wind, solar, and battery storage, respectively.

Google is investing billions in zero-emissions energy, and its grid-connection models are approved or under review in eight additional states. The Corporate Energy Buyers Association recently secured a similar agreement with Georgia Power and is pursuing one in North Carolina. "These innovations are actually some of the most incredible and understated innovations we’re going to see in regulatory and energy procurement," said Nidhi Thaker, the association’s senior vice president of policy. "And I think the actions that are being taken right now are actually going to set energy policy for the next two to three decades."