As data centers become more prevalent, states have developed legislation to address them.
Click on a state below to read about its policies involving AI or data centers. Note that these are only examples of policies as of April 2025, and the list is not intended to be comprehensive or all data centers-related policies in the country.
State Policy Info Summary
- Arizona: In 2013, Arizona passed a tax break to encourage data center development4.
- California: In California, the Climate Corporate Data Accountability Act requires corporations to report both emissions they are directly and indirectly responsible for, including emissions caused by producing the electricity they use. It was passed in 202116.
- Colorado: In 2024, a bill that would have incentivized the construction of data centers failed to pass after people brought up concerns around energy and water use18 19.
- Connecticut: A bill was proposed in 2024 that would begin proceedings to evaluate the impact of data centers on the electric grid 1.
- Florida: Florida has had an existing tax break for data centers since 2006. An updated version took effect in 202215.
- Georgia: Georgia passed a bill in 2024 to suspend data center tax breaks, but it was vetoed7.
- Idaho: Idaho passed a tax break for data centers in 20208.
- Illinois: In 2019, Illinois created a program to incentivize data center investment. Data centers had to meet a green building standard to qualify for the program5.
- Maine: “An Act to Limit the Amount of Electricity That May Be Provided to Data Centers on a Certain Commercial or Industrial Site” was passed out of committee in April 20252.
- Ohio: House Bill 15 was an attempt to change the electricity market in response to the rising demand caused in part by data centers. As of 2025, it had passed the House12 13.
- Oregon: HB 2819 in Oregon would have required high-energy use buildings to reduce their emissions by certain threshold over a period of 20 years. It was proposed in 2023 but not passed3.
- South Carolina: In 2011, South Carolina implemented a tax break for data centers17.
- Texas: In 2013, Texas passed a bill providing tax breaks on essential data center property purchases10.
- Virginia: At the end of 2023, Virginia approved an audit on the impact of data centers, including their impact on the energy grid9.
- Washington: In 2022, Washington expanded a tax break for data centers, which has caused conflicts with their goal of creating carbon-neutral utilities by 20306.
- Wyoming: In 2021, an attempt to repeal a tax break for data centers died in committee11.
bill passed
bill failed
in progress/ failed midway