Large data centers would need utility contracts and local agreements

Electric and gas utilities would need commission-approved contracts with data center customers. These rules apply to electric and gas utilities serving data centers, except centers that use less than both 15 megawatts of peak electricity and 1.5 billion cubic feet of gas annually. Contracts may not increase the risk of inadequate fuel supplies for any public utility. They must assign infrastructure and variable costs to the data center customer, including its share of shared infrastructure costs; other customers' power or gas adjustments may not increase. They must include a backup and reliability plan that prioritizes renewable power, storage, and demand response. Fossil fuel backup is limited to emergencies and testing, and its use must be limited and reported annually. If serving the data center requires more than $1 million in utility capital investment, the contract must require financial security from the customer. The commission must approve the contract before the utility provides service under it.

Municipalities would need community benefit agreements with data center customers. The agreement applies when a data center customer is within a municipality; the size exemption applies to centers using less than both stated electricity and gas amounts. The agreement must require a waste heat assessment and, if recovery is practicable, heat recovery or an agreed payment for local thermal projects. It must also cover water use and wastewater, broadband connection costs, and a contribution for digital infrastructure in or near the municipality. If the customer has not signed the agreement before construction begins, the municipality may sue to stop construction or operation and seek other relief. The agreement must be in place before the commission approves the utility contract and before construction begins.

People constructing covered data centers would need to file end-of-life dismantling and recycling plans. The filing applies to people constructing data centers in Alaska, except centers using less than both 15 megawatts of peak electricity and 1.5 billion cubic feet of gas annually. The plan must cover removing equipment, securely destroying data, recovering assets, restoring the site, and meeting environmental and other regulatory requirements. The Department of Environmental Conservation may require a revised plan if the filed plan does not meet the requirements. The plan must be filed before the commission approves the utility contract.