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HB2949 • 2026

energy costs; large data centers

HB2949 - energy costs; large data centers

Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Kevin Volk, Anna Abeytia, Cesar Aguilar, Lorena Austin, Seth Blattman, Junelle Cavero, Patty Contreras, Oscar De Los Santos, Brian Garcia, Nancy Gutierrez, Alma Hernandez, Consuelo Hernandez, Lydia Hernandez, Sarah Liguori, Elda Luna-Nájera, Aaron Márquez, Christopher Mathis, Mae Peshlakai, Mariana Sandoval, Stephanie Simacek, Stephanie Stahl Hamilton, Stacey Travers, Myron Tsosie, Betty J Villegas
Last action
2026-02-05
Official status
House second read
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Energy Costs for Large Data Centers

This bill requires large data centers to pay for the energy costs related to their operations, including increased fuel requirements and generation and transmission costs, without passing these costs onto other customers.

What This Bill Does

  • Requires public power entities to make large data centers pay for energy costs related to their operations.
  • Defines 'large data center' as a facility or group of facilities that process, store, retrieve, or transmit data with a peak demand of at least one hundred megawatts.
  • Prohibits large data centers from passing on these energy costs to other customers served by the same public power entity.

Who It Names or Affects

  • Large data center operators
  • Public power entities and their customers

Terms To Know

large data center
A facility or group of facilities that process, store, retrieve, or transmit data with a peak demand of at least one hundred megawatts.
public power entity
An organization responsible for providing electricity to the public in Arizona.

Limits and Unknowns

  • The bill does not specify how large data centers will be required to pay these costs.
  • It is unclear what penalties, if any, will apply if a large data center fails to comply with this requirement.

Bill History

  1. 2026-02-05 House

    House second read

  2. 2026-02-04 House

    House Rules: None

  3. 2026-02-04 House

    House Artificial Intelligence & Innovation: None

  4. 2026-02-04 House

    House Natural Resources, Energy & Water: None

  5. 2026-02-04 House

    House first read

Official Summary Text

HB2949 - energy costs; large data centers

Current Bill Text

Read the full stored bill text 
HB2949 - 572R - I Ver

REFERENCE TITLE:
energy costs; large data centers

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2949

Introduced by

Representatives
Volk: Abeytia, Aguilar, Austin, Blattman, Cavero, Contreras P, De Los Santos,
Garcia, Gutierrez, Hernandez A, Hernandez C, Hernandez L, Liguori,
Luna-N�jera, M�rquez, Mathis, Peshlakai, Sandoval, Simacek, Stahl Hamilton,
Travers, Tsosie, Villegas

AN
ACT

amending title 30, arizona revised
statutes, by adding chapter 2; amending title 40, chapter 1, article 1, arizona
revised statutes, by adding section 40-107; relating to public utilities.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 30, Arizona Revised Statutes,
is amended by adding chapter 2, to read:

CHAPTER 2

PUBLIC POWER ENTITIES

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE
30-301.

Large data centers; energy costs; definitions

A. A public power entity shall
require a large data center to pay for the energy costs, including increased
fuel requirements, generation costs and transmission costs, that are related to
the operation of the large data center. The energy costs that are
incurred by a large data center may not be passed on to other public power
entity customers.

B. For the purposes of this section:

1. "large data center"
means a facility, a campus of facilities or an array of interconnected
facilities in this state that is used by an entity or other business enterprise
to operate, manage or maintain a computer, group of computers or other
organized assembly of hardware and software for the primary purpose of
processing, storing, RETRIEVING or transmitting data and that has a peak demand
of at least one hundred megawatts.

2. "Public power entity"
has the same meaning prescribed in section 30-901.
END_STATUTE

Sec. 2. Title 40, chapter 1, article 1, Arizona
Revised Statutes, is amended by adding section 40-107, to read:

START_STATUTE
40-107.

Large data centers; energy costs; definition

A. The corporation commission shall
require a large data center to pay for the energy costs, including increased
fuel requirements, generation costs and transmission costs, that are related to
the operation of the large data center.� The energy costs that are incurred by
a large data center may not be passed on to other public service corporation
customers.

B. For the purposes of this section,
"large data center" means a facility, a campus of facilities or an
array of interconnected facilities in this state that is used by an entity or
other business enterprise to operate, manage or maintain a computer, group of
computers or other organized assembly of hardware and software for the primary
purpose of processing, storing, RETRIEVING or transmitting data and that has a
peak demand of at least one hundred megawatts.
END_STATUTE