WA House Advances Data Center Bill Amid Grid Strain Concerns

Washington lawmakers are advancing legislation aimed at regulating fast-growing data centers, as concerns mount over the strain the electricity-hungry facilities could place on the state’s power grid.

House Bill 2515 cleared the House Appropriations Committee on Monday, February 9, despite opposition from two Democrats and all Republicans on the panel. Reps. April Berg of Mill Creek and Larry Springer of Kirkland joined Republicans in voting against the measure. The bill now heads to the full House and would still require Senate approval.

Supporters say the proposal would protect utility customers from footing the bill for the rapid growth of large energy users.

“These policies seek to protect ratepayers by ensuring new data centers are picking up the whole tab for new growth,” said Rep. Beth Doglio, an Olympia Democrat and the bill’s lead sponsor. She said the legislation would also strengthen grid reliability and increase transparency around water and energy use.

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What House Bill 2515 Would Require

Under the bill, utilities would be required by 2027 to establish special rates or policies ensuring data centers cover the costs of the power infrastructure needed to serve them. The legislation would also require centers to reduce electricity use during periods of grid strain and submit reports detailing energy consumption, emissions and cooling technologies.

Industry Pushback and Economic Impact

Before advancing the bill, lawmakers adopted two significant changes. A Republican-backed amendment removed a proposed annual state fee on data centers based on energy use, which had been projected to generate more than $30 million per year for low-income weatherization programs and higher education. Lawmakers also pushed back the requirement for data centers to use emissions-free electricity from 2035 to 2045, aligning it with the state’s broader clean energy timeline.

Industry representatives say the revisions are improvements but argue the bill still unfairly singles out data centers.

How much power do data centers use

Dan Diorio, vice president of state policy for the Data Center Coalition, said other industries — including semiconductor manufacturing and food processing — consume similar amounts of electricity. He also said some reporting requirements could force companies to reveal trade secrets related to cooling systems.

Supporters of data centers point to economic benefits, including local tax revenue and jobs in rural communities such as Quincy.

Puget Sound Energy, the state’s largest investor-owned utility, said it supports the intent of the legislation but warned of the “considerable complexity” involved in managing growing power demand, particularly as competition increases for renewable energy resources.

Balancing Grid Reliability and Growth

Lawmakers on both sides say conversations will continue as the bill moves forward, with debate centered on balancing economic development, grid reliability and ratepayer protections.