This amendment changes the definition of a large load data center to require it uses at least 150 megawatts of power and operates only for processing data.
Alabama2026Enacted
SB270
Rules for Electric Contracts with Large Data Centers
Last scannedAug 24, 2026, 9:06 AM
In one sentence
This law sets rules that the Public Service Commission must follow when reviewing electricity contracts between utilities and very large data centers.
What it does
- Adds a new section to Alabama state code about utility contracts.
- Requires the Public Service Commission to check if contract costs are paid by the data center.
- Asks commissioners to see if other customers get lower bills or better service efficiency.
- Looks at whether the data center helps grow the local economy.
- Sets a definition for what counts as a large load data center customer.
Who it affects
- Electric utilities in Alabama
- Large load data centers using over 150 megawatts of power
- The Public Service Commission
- Other retail electric customers
Limits and unknowns
- The law does not say exactly how much money must be saved for other customers.
- It lists factors to consider but does not set a strict formula for approval or denial.
- The rules only apply starting on October 1, 2026.
Plain language
Terms to know
- Incremental costs
- Extra expenses for making and delivering electricity that the utility would not have without this specific data center.
- Large load data center customer
- A business that uses only computers to process data and needs at least 150 megawatts of peak power on connected land.
Official record
Sources
Official summary
This act adds Section 37-4-22.1 to the Code of Alabama 1975, to: (1) provide that contracts between a utility and a large load data center are in the public interest if the costs of supplying electricity to the data center are recouped from the data center and positive benefits for other retail electric customers are promoted; and (2) provide whether the terms of a contract could lower costs for other utility customers, whether the data center is expected to increase efficiency in the electric system, and whether the data center promotes or contributes to economic growth in the community as considerations for the Public Service Commission to determine if a contract between a utility and data center provides positive benefits.
Official activity
Bill history
- EnactedSenate
- Signature RequestedHouse
- Delivered to GovernorSenate
- EnrolledSenate
- Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1323 (Yeas 100, Nays 1)House
- Motion to Adopt - Adopted Roll Call 1322 (Yeas 104, Nays 0)House
- Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1258 (Yeas 33, Nays 0)Senate
- Ready to EnrollSenate
- Rafferty 1st Amendment OfferedHouse
- Third Reading in Second HouseHouse
- Read for the Second Time and placed on the CalendarHouse
- Reported Out of Committee Second HouseHouse
- Motion to Read a Third Time and Pass - Adopted Roll Call 853 (Yeas 30, Nays 0)Senate
- Third Reading in House of Origin (Yeas 30, Nays 0)Senate
- Pending Committee Action in Second HouseHouse
- Read for the first time and referred to the House Committee on Transportation, Utilities and InfrastructureHouse
- Read for the Second Time and placed on the CalendarSenate
- Reported Out of Committee House of OriginSenate
- Pending Committee Action in House of OriginSenate
- Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic DevelopmentSenate
Changes
Amendments
1 stored