Delaware legislation now mandates that data centers generate or procure their own electricity rather than relying solely on the municipal grid.
New legislation signed into law mandates that data centers generate their own clean energy to alleviate strain on the regional power grid and mitigate upward pressure on energy costs. The measure closely mirrors Oklahoma’s “Behind-the-meter” law, which was championed by Governor Kevin Stitt during a joint appearance with Governor Meyer at an event hosted by NBC’s Kristen Welker.
Under the new statute, data centers are prohibited from passing the costs associated with powering and upgrading their facilities onto utility ratepayers. According to a report by WHYY News, the law requires these facilities to produce their own “clean” energy to reduce their impact on the electric grid. Additionally, Meyer signed separate legislation barring data centers from receiving tax credits for job creation.
“Delaware is open to innovation, investment and economic growth, but growth must be responsible. It cannot come at the expense of those who live here,” Meyer stated during the bill-signing ceremony. “Data centers that do not pay their fair share do not belong in our communities. Data centers cannot jeopardize the reliability of our electric grid, and Delaware ratepayers will not be asked to subsidize enormous demands for power.”
Operated primarily by major technology firms, data centers house massive computer server arrays essential for supporting the expansion of cloud computing, data storage, and artificial intelligence. While proponents highlight the potential for increased tax revenue for state and local governments, residents remain wary. As utility bills continue to climb across the region, many fear that heightened demand from data centers could destabilize the power grid and drive energy costs even higher.
PJM Interconnection, the organization responsible for managing the region’s electric grid, has identified the rapid proliferation of data centers as a primary driver of rising electricity rates.
These concerns were echoed earlier this month during a joint appearance at the National Governors Association (NGA) conference in Oklahoma City. Addressing efforts by data center developers to establish projects in his state, Meyer issued a firm warning regarding resource consumption and economic control.
“Well, we’ve got to make sure billionaires aren’t controlling our economy and aren’t controlling local lands,” Meyer said. “I’ll be very clear, and we’re having tremendous success in my first 18 months attracting employers to our state. But I’m very clear, if you’re going to come, take away our water resources and not replace them, we don’t really want you here.”