Data Center Fair Share Act

The Data Center Fair Share Act requires electric utilities to ensure that large commercial customers, defined as those with a peak demand of 100 megawatts or more at a single site, pay the full incremental costs for any power grid upgrades needed to serve them. This obligation applies even if the customer later cancels their contract or stops purchasing electricity from the utility. The bill mandates that state regulatory authorities and nonregulated utilities begin considering these new standards within one year of enactment and complete the process within two years. States that fail to implement these federal requirements will face a penalty where 100 percent of their apportioned federal highway funds are withheld starting in the first fiscal year after the deadline passes.