Arizona: HB 2756 protects retail electricity customers from data center grid connection costs. Additional bills HB 2795 (preempts counties from preventing SMR construction near data centers) also advanced. Several other proposals (HB 2452, HB 4009, HB 2457) were killed or failed. The outcome remains pending. The community's stated objective was to require data centers to fund grid upgrades via HB 2756. VERIFIED 2026-05-26: Companion HB 2795 (SMR preemption) failed the Senate April 8 (a win on that piece), while HB 2756 (ratepayer protection) was still advancing; AZ's session ran into a late-May/June budget fight, so HB 2756's final signature/veto could not be confirmed. FLAG for re-check.
Would prohibit localities from granting final approvals for rezonings, special permits, and site plans for new data centers until existing grid interconnection requests are fulfilled or July 1, 2028. Introduced by Del. Irene Shin (D-Fairfax County). A House subcommittee voted to carry the bill over to the 2027 session, effectively killing it for 2026. Virginia's legislature considered over 60 data center-related bills this session.
Tennessee: Requires data center owners to pay full infrastructure costs (SB 2128), establishes data center impact reviews (SB 2653), addresses tariff structures (SB 1999), amends qualified data center tax provisions (SB 2584), and ties WARN Act/labor compliance to tax credits (HB 2047). Multiple bills pending in the 114th General Assembly, deferred to Senate Commerce and Labor Committee hearing March 10, 2026. VERIFIED 2026-05-26: Of roughly seven TN data center bills, only the industry-friendly self-generation bill (Public Chapter 961) passed; the impact-review and other bills died at sine die Apr 23.
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).