REQUESTING THE HAWAII STATE ENERGY OFFICE TO CONVENE A WORKING GROUP TO STUDY THE POTENTIAL IMPACTS OF LARGE DATA CENTERS ON HAWAII'S ELECTRIC UTILITIES, RATEPAYERS, NATURAL RESOURCES, AND CLIMATE GOALS.

SCR95

THE SENATE

S.C.R. NO.

95

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

requesting the hawaii state energy office to convene a
working group to study the potential impacts of large data centers on Hawaii's
electric utilities, ratepayers, natural resources, and climate goals
.

����
WHEREAS, rapid
advances in artificial intelligence and cloud computing have led to a dramatic
increase in the construction of large-scale data centers, including
"hyperscale" facilities that house thousands of servers and require
massive amounts of electricity to operate; and

����
WHEREAS, these
facilities are essential components of the digital economy but are also among
the most energy-intensive types of commercial infrastructure; and

����
WHEREAS, data
centers consumed approximately 4.4 percent of total electricity in the United
States in 2023 and could consume between 6.7 percent and twelve percent of
total electricity by 2028 as demand for artificial intelligence computing
continues to expand; and

����
WHEREAS, the
rapid growth in electricity demand from data centers has raised concerns among
policymakers across the United States that large new power loads may require
costly investments in new generation, transmission, and grid infrastructure;
and

����
WHEREAS, without
appropriate regulatory safeguards, the costs of such infrastructure investments
may be borne by existing residential and small-business ratepayers rather than
by the data center developers whose projects create the demand for those
upgrades; and

����
WHEREAS, policymakers
in multiple states and in Congress have begun exploring measures to ensure that
data center developers pay their fair share of grid upgrade costs and that
electricity consumers are protected from higher utility bills associated with
data center expansion; and

����
WHEREAS, the
rapid expansion of artificial intelligence infrastructure has also raised
concerns regarding grid reliability and the potential for electricity shortages
or increased risk of outages if new large electricity loads are not carefully
planned and integrated into the electric system; and

����
WHEREAS, in
addition to electricity consumption, data centers can require substantial water
resources for cooling, with medium-sized facilities using tens of millions of
gallons of water annually and the largest facilities potentially using hundreds
of millions to billions of gallons each year; and

����
WHEREAS, the
siting and operation of data centers may also increase greenhouse gas emissions
if new fossil fuel generation is built or existing fossil fuel plants operate
more frequently to meet the facilities' electricity demand; and

����
WHEREAS, article
XI, section 7, of the Hawaii State Constitution establishes the State's
affirmative duty to protect, control, and regulate the use of Hawaii's water
resources for the benefit of its people; and

����
WHEREAS, Hawaii's
isolated island electric grids are uniquely sensitive to large new electricity
loads and require careful planning to ensure that new infrastructure
investments do not undermine the State's clean energy goals or place additional
financial burdens on residents; and

����
WHEREAS,
although Hawaii has not yet received proposals for large hyperscale data
centers, the rapid national growth of artificial intelligence infrastructure
suggests that such proposals may arise in the future; and

����
WHEREAS, it
is prudent for the State to proactively evaluate regulatory frameworks and
safeguards to ensure that any future data center development in Hawaii protects
ratepayers, safeguards environmental resources, and aligns with the State's
renewable energy and climate goals; now, therefore,

����
BE IT
RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, the House of Representatives concurring, that the Hawaii
State Energy Office is requested to convene a working group to study the
potential impacts of large data centers on Hawaii's electric utilities,
ratepayers, natural resources, and climate goals; and

����
BE IT FURTHER
RESOLVED that the working group is requested to consist of the following
members:

����
(1)
�
The Chief Energy Officer of the Hawaii State
Energy Office, or the Chief Energy Officer's designee, who shall serve as chair
of the working group;

����
(2)
�
The Director of Business, Economic
Development, and Tourism, or the Director's designee;

����
(3)
�
The Chairperson of the Board of Land and
Natural Resources, or the Chairperson's designee;

����
(4)
�
The Chairperson of the Public Utilities
Commission, or the Chairperson's designee;

����
(5)
�
Representatives from electric utilities in the
State, as invited by the chair;

����
(6)
�
Representatives from consumer advocacy and
environmental organizations, as invited by the chair; and

����
(7)
�
Other stakeholders, as invited by the chair;
and

����
BE IT FURTHER
RESOLVED that the working group is requested to examine potential regulatory
safeguards and policy options, including but not limited to:

����
(1)
�
Mechanisms to ensure that data center
developers bear the full cost of any new electricity generation, transmission,
distribution, or grid infrastructure required to serve their facilities;

����
(2)
�
Measures to protect residential and
small-business ratepayers from increased electricity costs associated with
large new electricity loads;

����
(3)
�
Requirements for transparency and reporting
regarding electricity consumption, water usage, and greenhouse gas emissions
associated with data center operations;

����
(4)
�
Strategies to ensure that data centers
operating in Hawaii are powered by renewable energy and do not undermine the
State's statutory clean energy goals;

����
(5)
�
Consideration of water use and other
environmental impacts associated with data center cooling systems;

����
(6)
�
Grid reliability considerations related to
large electricity loads on Hawaii's island grids; and

����
(7)
�
Any other regulatory safeguards that may be
necessary to ensure that data center development, if it occurs in Hawaii,
provides net benefits to the State and its residents; and

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BE IT FURTHER
RESOLVED that the working group is requested to submit a report of its findings
and recommendations, including any proposed legislation or regulatory actions,
to the Legislature no later than twenty days prior to the convening of the
Regular Session of 2027; and

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BE IT FURTHER
RESOLVED that the working group shall cease to exist on June 30, 2027; and

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BE IT FURTHER
RESOLVED that certified copies of this Concurrent Resolution be transmitted to the
Director of Business, Economic Development, and Tourism; Chairperson of the
Board of Land and Natural Resources; Chairperson of the Public Utilities
Commission; Chief Energy Officer of the Hawaii State Energy Office; President
and Chief Executive Officer of Hawaiian Electric; and President and Chief
Executive Officer of the Kaua
ʻ
i
Island Utility Cooperative.

OFFERED BY:

_____________________________

Report Title:
�

Hawaii
State Energy Office; Large Data Centers; Working Group