Steptoe has introduced the Data Center Regulation Tracker to help data center operators, developers, and utilities manage the evolving landscape of state-level energy policies affecting planning, construction, and operation of data centers in the United States. This monitoring tool arrives as the sector faces mounting challenges from rapid growth in artificial intelligence workloads and heightened demand for grid power.
The tracker is designed to provide state-by-state updates on executive orders, utility rate filings, proposed regulations, and proceedings that shape data center operations and interconnection strategies, Steptoe reports. According to Steptoe, the tool offers timely intelligence to support strategic planning by illustrating how regulatory developments impact large-load energy provision to data centers and related infrastructure.
Steptoe notes significant trends driving this need, citing Department of Energy data on US data center electricity use: 4.4 percent of national power in 2023, with projections of up to 12 percent by 2028. S&P data estimates data centers now account for 8 percent of US demand and could represent 30 percent of new net demand through 2030. The firm also references McKinsey estimates that global data center capital expenditures will approach $7 trillion by 2030, with $4 trillion allocated to computing hardware and $3 trillion to real estate and power infrastructure.
Regarding technical challenges and the necessity of real-time visibility into regulatory shifts for data center operators, Steptoe Energy partner Will Keyser, who is leading the project, stated, “Data centers are central to the digital economy and the AI revolution,” adding, “There is massive latent demand for more AI which increases energy demand, placing additional and significant pressure on power suppliers, regulators, and energy infrastructure. This means looking at all the options for supplying power for large load needs and the public policy and regulatory issues involved. Many states are exploring different and sometimes unique solutions to solve the needs caused by data center growth and our new database will help clients and potential clients monitor those developments.”
The Data Center Regulation Tracker is available via Steptoe’s website and is aimed at decision-makers evaluating site selection, power procurement, compliance, and incentive strategies for large-scale data center projects in the US.
Source: Steptoe
