State Regulation Of Data Centers

Summary

• Recent legislative activity is concentrated in a few states, especially Delaware, New Hampshire, Vermont, North Carolina, and Pennsylvania.
• A major recurring fight is whether data centers should be treated like ordinary permitted uses or face separate siting and zoning limits.
• Another consistent theme is cost shifting: lawmakers are pushing developers to pay more of the new transmission, generation, and capacity costs tied to large loads.
• Water use, cooling systems, backup generation, noise, and heat impacts remain central concerns in state and local review.
• Some states are moving toward transparency rules, including limits on nondisclosure agreements and public access to development information.
• Vermont and North Carolina show a more detailed regulatory model, linking approvals to ratepayer protection, reporting, and operational standards.
• Pennsylvania stands out as a tax-incentive case, where an existing data center sales tax exemption is now under repeal and redesign pressure.