REFERENCE TITLE: energy costs; large data centers

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2949

Introduced by

Representatives Volk: Abeytia, Aguilar, Austin, Blattman, Cavero, Contreras P, De Los Santos, Garcia, Gutierrez, Hernandez A, Hernandez C, Hernandez L, Liguori, Luna-Nájera, Márquez, Mathis, Peshlakai, Sandoval, Simacek, Stahl Hamilton, Travers, Tsosie, Villegas

AN ACT

amending title 30, arizona revised statutes, by adding chapter 2; amending title 40, chapter 1, article 1, arizona revised statutes, by adding section 40-107; relating to public utilities.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 30, Arizona Revised Statutes, is amended by adding chapter 2, to read:

CHAPTER 2

PUBLIC POWER ENTITIES

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE30-301. Large data centers; energy costs; definitions

A. A public power entity shall require a large data center to pay for the energy costs, including increased fuel requirements, generation costs and transmission costs, that are related to the operation of the large data center. The energy costs that are incurred by a large data center may not be passed on to other public power entity customers.

B. For the purposes of this section:

1. "large data center" means a facility, a campus of facilities or an array of interconnected facilities in this state that is used by an entity or other business enterprise to operate, manage or maintain a computer, group of computers or other organized assembly of hardware and software for the primary purpose of processing, storing, RETRIEVING or transmitting data and that has a peak demand of at least one hundred megawatts.

2. "Public power entity" has the same meaning prescribed in section 30-901. END_STATUTE

Sec. 2. Title 40, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 40-107, to read:

START_STATUTE40-107. Large data centers; energy costs; definition

A. The corporation commission shall require a large data center to pay for the energy costs, including increased fuel requirements, generation costs and transmission costs, that are related to the operation of the large data center.  The energy costs that are incurred by a large data center may not be passed on to other public service corporation customers.

B. For the purposes of this section, "large data center" means a facility, a campus of facilities or an array of interconnected facilities in this state that is used by an entity or other business enterprise to operate, manage or maintain a computer, group of computers or other organized assembly of hardware and software for the primary purpose of processing, storing, RETRIEVING or transmitting data and that has a peak demand of at least one hundred megawatts. END_STATUTE