Alaska2026Passed Legislature

SB250

Alaska Data Center Utility and Community Rules

Last scannedSep 20, 2026, 12:32 AM

In one sentence

This law requires utilities to charge data centers for their specific costs, mandates contracts reviewed by the state commission, and requires agreements with local towns before construction begins.

Requires that only data centers pay for new utility costs created by serving them so other customers do not see higher rates.
Mandates a written contract between utilities and data centers that the Public Utilities Commission must review and approve.
Forces data center owners to sign community benefit agreements with local towns before construction starts or contracts are approved.
Requires plans for waste heat recovery, water usage, broadband costs, and digital equity investments in nearby areas as part of town agreements.
Demands financial security from data centers if the utility must spend more than $1 million on new infrastructure.

The law does not apply to small data centers that consume less than a certain amount of power, but the specific limit is cut off in this text.
It is unclear how long financial security must remain in effect since the utility decides the term length.

Plain language

Data Center: A facility defined by state law that houses computer systems and related components used to store, process, and distribute data.
Community Benefit Agreement: A contract between a developer and a local town outlining benefits like waste heat use, water plans, or digital infrastructure investments required before construction begins.
Financial Security: Money or assets held by the utility to ensure it can recover costs if the data center owner fails to pay for services when capital investment exceeds $1 million.

Official record

Validated

DATA CENTERS, UTILITIES An Act relating to data centers; and relating to utility service for data centers.

Official activity