Requires that certain data centers requiring large amounts of electricity be required to fund the cost of necessary infrastructure improvements to supply such electricity.

Plain-English Summary

This bill would require large data centers in Rhode Island to pay for the electrical infrastructure upgrades needed to power their facilities, rather than having those costs spread across all utility customers. Data centers — the large buildings that house computer servers powering everything from websites to cloud storage — can consume enormous amounts of electricity, sometimes requiring significant upgrades to power lines, substations, and other electrical infrastructure to meet their energy demands.

Under this bill, when a data center's electricity needs are large enough to require new or upgraded infrastructure, the data center company itself would be responsible for funding those improvements. Currently, the costs of upgrading electrical infrastructure can be shared broadly among all ratepayers — meaning everyday Rhode Island residents and businesses could end up paying higher utility bills to support a private company's power needs.

This bill primarily affects large data center companies looking to operate or expand in Rhode Island, as well as the state's utility customers. Data center operators would face higher upfront costs to build or expand their facilities. On the other hand, regular utility customers — homeowners, small businesses, and others — could be protected from having their electricity bills increase to subsidize infrastructure built mainly for the benefit of a single large company.

The bill has been referred to the Senate Commerce Committee, which has recommended it be held for further study, meaning lawmakers are still examining it before deciding whether to move it forward.