Delaware makes data centers pay their own power costs

Big AI data centers use enormous amounts of electricity, and somebody has to pay for the grid upgrades they need. Delaware just decided it won't be ordinary ratepayers. On Wednesday, Gov. Matt Meyer signed House Bill 233. It creates a separate electricity rate for large power users like data centers. They now have to cover the full cost of their own infrastructure upgrades. Meyer called it the most comprehensive ratepayer protection against data centers in the country.

The problem this fixes is already showing up elsewhere. Utilities have been spreading the cost of new power lines and substations across everyone's bill, not just data centers' bills. Pennsylvania addressed data centers with a separate order in August too. Delaware's law goes further by targeting the money directly. The package also includes ten other energy and environmental bills signed the same day.

Keep reading — what to watch

Will other states copy this? Data centers get built wherever power is cheap and permitting is fast. A state that makes them pay full freight risks losing that construction to a neighbor that doesn't. That trade-off is cheaper bills against fewer data centers. It's exactly what other legislatures will be watching Delaware to see play out.