Washington regulators are moving to rein in data centers’ soaring electricity demands, fearing they’re straining the grid and driving up costs for everyday customers. After a state bill failed last session, the Utilities and Transportation Commission is now crafting new rules—potentially requiring data centers to cut power during shortages, pay extra for grid strain, or sign long-term contracts. Tech giants like Amazon and Microsoft, who helped block the previous legislation, are pushing back on stricter proposals, even as they claim their facilities shouldn’t pass costs onto others. With utilities scrambling to expand clean energy without raising rates or risking blackouts, the debate centers on whether data centers can—or should—absorb the rising infrastructure costs. A draft policy is expected this fall, with final decisions due by year’s end, as cities nationwide pause new data center permits amid mounting grid stress.
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