Debt stalls for Washington data center regulator following tech industry setback – GeekWire
A Washington state bill that would require utilities and data center companies to enter into agreements that protect ratepayers from rising electricity costs and bring transparency to the facilities’ environmental impacts appears to have stalled.
After weeks of passing through Olympia, the Senate Ways and Means Committee did not vote on House Bill 2515, causing it to miss the legislative deadline.
HB 2515 has gained support among Democratic lawmakers, while Microsoft and Amazon are trying to block the scenes, the Seattle Times reports. The situation changed on Friday when Microsoft – which has about 30 data centers in the state – came out against this bill.
“We respectfully urge the committee not to advance the bill without significant changes,” said Lauren McDonald, Microsoft’s senior director of government affairs in Washington state, testifying before the Senate committee. He described the law as “anti-competitive in a different way.”
The bill has received support from environmental groups, tribal nations, and taxpayer advocates who warn that the rapid expansion of AI data centers risks paying utility bills and draining less water.
Opponents of the technology sector, workers and local municipalities who have benefited financially from the facilities say the development supports critical computer infrastructure, creates jobs and provides additional property tax revenue.
Across the US, leaders and communities at all levels are concerned about the damage caused by the proliferation of data centers that power the Internet and AI – a backlash that has reached the White House, where President Trump this week called on major technology companies to promise not to pay electricity bills.
Microsoft President Brad Smith said in early February that the company had shared the “intent” of the law, but not all the details. In January the company launched a community-focused program promising to be a good neighbor to the communities where it has data centers.
Supporters of the measure say HB 2515 goes along with many of the climate promises made by big tech companies, vowing to use clean energy and cut their carbon emissions. They called the bill a necessary step to regulate the growing data center space.
“Tech companies’ lobbying killed this bill. And unfortunately, the Legislature allowed it to happen, passing up an important opportunity to put in place general guidelines to protect Washingtonians from high electricity prices, grid outages, and environmental impacts,” said Zach Baker, policy director of the nonprofit NW Energy Coalition, in an email.
Dan Diorio, vice president of national policy for the Data Center Coalition, on Tuesday highlighted the role played by the centers, which he calls “vital digital infrastructure.”
“The data center industry will continue to work with utilities, grid operators, and policymakers,” he said in an email, “to develop the necessary reliable, affordable grid infrastructure that supports economic growth for all customers.”
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