Renewables

Require that data centers procure or subscribe to locally deliverable, additional, and zero-emissions renewable energy at all hours of the day, every day of the year, as a condition for receiving approval.¹ “Additional” is an important requirement to ensure that data centers do not take energy away from another project that would have used the available renewable energy to decarbonize.

1. Thanks to Sierra Club for this language. For more details, see Sierra Club, “State Policies to Migitate Data Centers,” January 2025, https://docs.google.com/document/d/1ECA47CaiLwaL0STaon7Ng4O2i-Etd6E2mPfhqp-30TI/. ↩︎

Mandate 24/7 Renewable Energy Requirements

Require that data centers procure or subscribe to locally deliverable, additional, and zero-emissions renewable energy at all hours of the day, every day of the year, as a condition for receiving approval.¹ “Additional” is an important requirement to ensure that data centers do not take energy away from another project that would have used the available renewable energy to decarbonize.

Require “Clean-Energy Tariffs” for Utilities

“Clean-energy tariffs”² are programs where large-load customers commit to purchasing carbon-free energy resources to meet their demand load. In these programs, data centers provide the up-front financial capital for utility companies to develop or procure renewable energy resources, then commit to purchasing the energy supply. States should require that large-load customers participate in this program for all energy needs (24/7). These can be multiyear or lifetime commitments.

1. Sierra Club, “State Policies to Mitigate Data Centers,” January 2025, https://docs.google.com/document/d/1ECA47CaiLwaL0STaon7Ng4O2i-Etd6E2mPfhqp-30TI/edit?tab=t.0#heading=h.4gub98glhten. ↩︎
2. “Clean-energy tariffs” are programs where large-load customers commit to purchasing carbon-free energy resources to meet their demand load. In these programs, data centers provide the up-front financial capital for utility companies to develop or procure renewable energy resources, then commit to purchasing the energy supply. States should require that large-load customers participate in this program for all energy needs (24/7). These can be multiyear or lifetime commitments. ↩︎

Oppose Development of Fossil-Fuel-Based Generation and Transmission Infrastructure to Power Data Centers

Utilities need to receive certificates of public convenience and necessity (CPCNs) from state PUCs in order to build new generation and transmission. Advocates can intervene in these cases to argue for

• not building new fossil-fuel power plants or transmission lines to power data centers, and/or 
• requiring that the costs of such infrastructure should be fully borne by the data center customers.

Regulate Purchase Agreements Between Utility Company and Power Users

Power-purchase agreements are agreements between a utility company and a data center operator or independent power producer stipulating that the utility agrees to provide electricity to the data center. States can dictate the terms of these purchase agreements, including incentivizing the purchase of renewable energy and prohibiting incentives or discounts for energy generated through fossil fuels.

Prevent New Electricity Demand from Delaying or Compromising State Environmental Standards

States should require public-utility commissions to demonstrate that new electricity demand will not delay or compromise state environmental standards as a condition for approval.

AI data centers have pointed to carbon capture and storage (CCS) technologies as techniques to reduce emissions for their energy infrastructure. CCS and direct air capture (DAC) technologies are propped up by the fossil fuel industry to artificially extend their lifespan. These technologies require significant energy use, negatively impact public health, and remain unproven. Congress should also roll back the 45Q federal tax credit to stop subsidizing these false solutions.¹

1. 26 U.S.C. § 45Q (2023). ↩︎

Investing in agency staff and experts across the federal government who specialize in renewable energy technologies, cumulative-impact analysis, and environmental justice review will strengthen environmental analysis while reducing review timelines. Ensure that renewable development does not facilitate data center expansion by requiring that all new renewable energy generation funded with public dollars be allocated to residential, municipal, and public-interest uses first.

In 2025, President Trump cut over $7 billion in grants designed to support hundreds of clean-energy projects in sixteen states.¹ The federal government can use its power to reinstate funding for renewable projects, with a focus on community-owned solar and wind projects. The government can stipulate that any renewable energy funding provisions in the Bipartisan Infrastructure Law or Inflation Reduction Act cannot go into data center projects.

1. Matthew Daly and Michael Phillis, “Trump Administration Cuts Nearly $8B in Clean Energy Projects in States That Backed Harris,” Associated Press, October 2, 2025, https://apnews.com/article/trump-clean-energy-hydrogen-hub-newsom-0223cb4469508bcea4f689c18c9ab65d. ↩︎