Accelerate Renewable Energy Infrastructure and Use

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.

Example

New York State introduced a bill offering a staged approach: By 2030, at least one-third of all energy used by data centers must be provided through power-purchase agreements for renewable energy; by 2035, at least two-thirds; and by 2050, all energy. Thus it will take the state 25 years to reach a 100 percent renewable-energy commitment, during which time data center development will significantly expand the production of fossil-fuel energy.

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.

Strong example

A New York State bill prohibits incentives in fossil fuel power-purchase agreements with utilities.

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.

example

Minnesota signed a law requiring the state’s public-utility commission to consider how electricity provided by utilities to large customers achieves state electricity standards, including solar energy standards. A stronger law would mandate that public-utility commissions can approve electricity only if large-load customers achieve state electricity standards.