Moratoriums are the loudest data center bills, but they are not the most common. The 2026 wave of state legislation is mostly non-moratorium: cost allocation between data centers and residential ratepayers, water reporting, noise limits, backup generator emissions, tax incentive reforms, and standardized disclosure of energy and water use. These tools survive vetoes (moratoriums often don't) and are reshaping how AI-scale data centers get built across the United States.
This guide is the state-by-state companion to our data center moratorium tracker. Where the moratorium tracker covers explicit construction pauses, this one covers the everything-else: the laws that let data centers proceed but on materially different terms than five years ago.
The Five Categories of Non-Moratorium Data Center Regulation
State data center bills in 2026 cluster into five regulatory categories. Most enacted laws combine two or three of these.
Virginia: The Most Concentrated Wave of Enacted Bills
Virginia hosts roughly one-third of U.S. hyperscale data center capacity, particularly in Loudoun and Prince William counties. In the 2026 session, the General Assembly enacted the most concentrated package of data center regulation in any state, touching four of the five categories above. The Virginia DEQ also moved on a Tier 4 generator rule that takes effect July 1, 2026.
| Bill | What It Does | Category | Status | Source |
|---|---|---|---|---|
| HB 1393 | Cost allocation for new high-energy users (25 MW+); protects residential ratepayers from cost-shifting | Cost Allocation | Enacted | lis.virginia.gov |
| HB 153 / SB 94 | Siting standards for data centers 100 MW+: 500-foot noise setback from residential, screening, locality findings | Siting, Zoning & Noise | Enacted | lis.virginia.gov |
| HB 284 | Demand flexibility — pilot programs for utility-data center curtailment and load-shifting agreements | Cost Allocation | Enacted | lis.virginia.gov |
| HB 496 | Water reporting: data centers must report withdrawals and consumptive use to DEQ | Water & Disclosure | Enacted | lis.virginia.gov |
| SB 553 | Localities must address water-supply impacts in rezonings involving data centers | Water | Enacted | lis.virginia.gov |
| HB 1515 (2025) | Broader data center siting reforms — carried over to 2027 session | Siting | Carried Over | lis.virginia.gov |
Why Virginia matters even if you don't build there: Other state legislatures cite Virginia's enacted bill numbers verbatim. HB 1393's cost-allocation framework and HB 496's water reporting template are the most copied provisions in 2026 hearings across other states. If you operate at scale, expect to see something close to these in your jurisdiction within the next session or two.
South Dakota: The "Data Center Bill of Rights"
South Dakota Gov. Larry Rhoden signed two companion bills on March 24, 2026 — SB 135 and HB 1038 — that legislators framed as a "Data Center Bill of Rights for Citizens." The bills target data centers of 10 MW or larger and pair cost-allocation protections with structured disclosure. They were enacted only after a competing pro-incentive package failed.
- 10 MW load threshold for the new disclosure and cost-shifting protections.
- Public Utilities Commission gets explicit authority to require contributions in aid of construction and to refuse cost-shifting onto residential customers.
- Standardized energy and water use reporting filed with the Commission.
Primary source: Route Fifty. Bill texts: sdlegislature.gov — SB 135.
Other States Worth Tracking
Illinois — Energy Disclosure
Illinois has moved toward standardized data center energy disclosure tied to existing utility filings, building on the state's Climate and Equitable Jobs Act framework. The most consequential 2026 activity centers on Commerce Commission rulemaking rather than headline legislation. Operators above 25 MW should expect more granular monthly or quarterly reporting requirements within the next rule cycle.
Texas — Cost Allocation Pressure
Texas does not have a moratorium movement, but ERCOT's load growth forecasts have driven Public Utility Commission proceedings on large-load interconnection deposits, capacity contributions, and demand-response requirements. The 2026 PUCT large-load study is the document to watch — it is being cited in Virginia, Ohio, and Georgia hearings.
Georgia — Local Action After State Failure
At the state level, Georgia HB 1059 died in committee with no further action after the session ended April 3, 2026. The action moved local: Camden County adopted a 9-month moratorium on May 5, 2026, and other counties are debating similar pauses. Georgia Power's 2026 IRP filings show data center load now driving the majority of the state's near-term capacity additions, which keeps the issue alive even without state legislation. The Current GA.
Ohio — Ballot Measure Path
With the legislature reluctant to act, advocates have moved to the ballot. Sponsors must collect 413,488 valid signatures by July 1, 2026 to qualify a statewide measure that would restrict new data centers above 25 MW for the November 2026 ballot. MultiState.
Maryland — Both Tracks Active
Maryland is pursuing emergency moratorium legislation (HB 120, see the moratorium tracker) and Public Service Commission proceedings on cost allocation for large-load customers. Baltimore passed a one-year local moratorium on May 12, 2026.
New York — Disclosure Pending GEIS
New York's S.9144 / A.10141 moratorium is tied to completion of a Department of Environmental Conservation Generic Environmental Impact Statement (GEIS). Operationally, the GEIS process itself is forcing disclosure of water, energy, and emissions impact data even before the moratorium passes. HK Law.
What's Driving the 2026 Regulatory Surge
Four data points keep showing up in the hearing records, in roughly this order:
- Ratepayer impact. State PUCs are warning that large data center loads will shift hundreds of millions in transmission upgrade costs onto residential customers unless explicit cost-allocation rules are written. Virginia HB 1393 and South Dakota SB 135 are the cleanest legislative responses so far.
- Water stress. In humid east-coast jurisdictions and drought-prone western ones alike, AI-scale evaporative cooling is being scrutinized. Virginia HB 496 and SB 553 are the model statutory texts other states are now copying.
- Noise complaints. Residential neighbors of new data center campuses have driven local zoning fights in Loudoun, Prince William, Atlanta-metro, and Phoenix-metro jurisdictions. Virginia HB 153's 500-foot setback is becoming a reference standard.
- Backup generator emissions. Backup diesel generator runtime has become a regulatory pressure point, especially where AI data center cluster siting collides with existing air-quality nonattainment areas. Virginia DEQ's Tier 4 generator rule (effective July 1, 2026) is the most concrete state response.
Compliance Implications for AI-Scale Operators
Three practical takeaways for counsel, compliance teams, and developers:
- Disclosure-first compliance pays off. States with mandatory water and energy reporting can be planned around. States without reporting today are likely to have it next session. Building disclosure-grade operational data now reduces friction either way.
- Cost allocation is the actual battleground. Even when moratoriums fail (Maine, Georgia), cost-allocation reforms tend to survive. Operators should treat ratepayer cost-shifting as the most likely regulatory outcome in any state with a public-utility commission proceeding open.
- Local action is the fastest-moving layer. Oklahoma City (April 21, 2026), Baltimore (May 12, 2026), and Camden County (May 5, 2026) all passed moratoriums in spring 2026. Municipal pauses are routinely passed in 30–60 days — far faster than any state bill cycle.
Frequently Asked Questions
Which states have enacted data center regulations in 2026?
Virginia (HB 1393, HB 153 / SB 94, HB 284, HB 496, SB 553) and South Dakota (SB 135, HB 1038) lead the enacted-law list. Several other states have active rulemaking through their public utility commissions even without new statutes.
What is a "data center bill of rights"?
The phrase comes from South Dakota's SB 135, the companion to HB 1038. It pairs cost-allocation protections with standardized disclosure for data centers above 10 MW. The label is being borrowed in other state hearings.
How do non-moratorium regulations differ from moratorium bills?
Moratoriums pause new construction or permits for a defined window. Non-moratorium regulations let projects proceed but on different terms — cost allocation, reporting, noise, water, or tax incentive reforms. Moratoriums often fail (Maine LD 307 was vetoed; Georgia HB 1059 died in committee), while non-moratorium bills are more likely to survive the legislative process.
What is Virginia's HB 1393 in plain English?
HB 1393 prevents residential ratepayers from subsidizing grid upgrades that primarily serve new large-load customers (25 MW+) like data centers. It directs the State Corporation Commission to use cost-allocation tools that put the burden on the customer driving the upgrade. Bill summary.
Are local moratoriums or state regulations more likely to affect my project?
In 2026, local moratoriums have been faster to pass (Oklahoma City, Baltimore, Camden County), while state regulations have been more durable once enacted. Both should be modeled in any siting due diligence. The moratorium tracker covers the pauses; this guide covers everything else.
What about federal regulation?
The leading federal proposal is S. 4214, the AI Data Center Moratorium Act, introduced by Sen. Sanders and Rep. Ocasio-Cortez on March 25, 2026. It is in committee and unlikely to pass this Congress, but its 20 MW AI threshold is influencing state bills.