INSIGHTSSERIES
Power & Utilities | Smart Grid
September 28, 2026
States Tighten Data Center Requirements Across Grid, Water, and Land Use
From allocating infrastructure costs to evaluating environmental and community impacts, states are increasing scrutiny of data center development.
Data center scrutiny is expanding, with states requiring large load customers to assume greater responsibility for infrastructure costs and comply with…Read the full report
Key Takeaways
- California has enacted seven data center laws requiring developers to fund grid upgrades, disclose water use, meet clean energy requirements, and comply with tighter environmental and land-use rules.
- Texas has escalated oversight, directing enforcement of water-use reporting requirements and pausing new data center permitting decisions until ERCOT completes its statewide audit.
- Massachusetts has established a statewide framework for the review and approval of large data center projects, requiring major projects to address ratepayer, community, and environmental impacts before moving forward.
