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Connecticut SB245, 'An Act Eliminating Certain Tax Incentives For Data Centers,' would revoke the state's data center tax incentive program established in 2021, which allows DECD to enter into 20- or 30-year agreements providing sales, use, and property tax exemptions. The bill is part of a national trend, with more than 300 data center bills filed across 30+ states in the first six weeks of 2026 alone. It received a favorable change of reference to the Committee on Finance, Revenue and Bonding. VERIFIED 2026-05-26: SB 245 (repeal data center tax incentives) was never taken up; CT adjourned sine die May 6, 2026 (companion HB 5469 also failed).
Alabama Senate Bill 270 (Alabama Affordability Protection Act), sponsored by Sen. Lance Bell, requires the Public Service Commission to review contracts between utilities and data centers using 150+ MW to ensure costs are not passed to residential ratepayers. Requires data centers to pay full cost of grid infrastructure upgrades. Passed unanimously by both chambers (Senate 30-0, House 100-1). Governor Kay Ivey signed SB 270 into law on April 10, 2026. Senate concurred 33-0 after House amendments.
South Carolina S. 867, the 'Data Center Development Act', introduced January 29, 2026, is sponsored by Sens. Tom Davis (R-Beaufort, primary sponsor), Kimbrell, Garrett, Sutton, Walker, Blackmon, Turner, Zell, Kennedy, and Devine. The bill requires a state permit before a new data center can operate, and regulates permitted data centers on locations, water usage, infrastructure costs, and financial assurances. Sen. Davis described it as a 'middle ground' approach. Separately, H4583, the 'South Carolina Data Center Responsibility Act', is sponsored by Reps. April Cromer (R-Anderson), Gilreath, Oremus, Chumley, White, Reese, and Atkinson. Additional related bills include S. 724 (commercial data center water usage reporting) and S. 3401 (technology transparency). A gigawatt-scale data center proposal in the Lowcountry drew significant opposition from local residents and a bipartisan group of legislators representing Colleton County. VERIFIED 2026-05-26: Did not advance before South Carolina's regular session adjourned May 14, 2026 (carryover possible in the 2-year biennium). The SC Senate did pass budget provisos requiring annual data center water-use reporting ($10k/day penalty) and an economic-incentive moratorium.
