States rethink data centers as ‘electricity hogs’ strain the grid

High-voltage transmission lines provide electricity to data centers in Loudon County, Virginia, home to the world’s largest concentration of data centers. Lawmakers in Virginia and other states are rethinking how incentive programs for data centers may impact the electric grid, clean energy goals and utility rates for other consumers. (Ted Shaffrey/The Associated Press)

State Sen. Norm Needleman championed the 2021 legislation designed to lure major data centers to Connecticut.

The Democratic lawmaker hoped to better compete with nearby states, bring in a growing industry, and provide paychecks for workers tasked with building the sprawling server farms.

But this legislative session, he’s wondering if those tax breaks are appropriate for all data centers, especially those with the potential to disrupt the state’s clean energy supply.

Particularly concerning to him are plans for a mega data center on the site of the state’s only nuclear power plant. The developer is proposing an arrangement that would give it priority access to electricity generated at the plant, which would mean less carbon-free power for other users.

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