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1/29/2026
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Kennedy bill would regulate burgeoning data center industry in Rhode Island
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STATE HOUSE —House Speaker Pro Tempore Brian Patrick Kennedy (D-Dist. 38, Hopkinton, Westerly) has introduced legislation that would implement state regulations on data centers being built in Rhode Island.
A data center is a physical facility that houses computer systems and associated components, such as telecommunications and storage systems, to process, store, and manage data. They are essential for supporting various online services and applications, forming the backbone of the digital infrastructure.
“Data centers have become controversial because they often require improvements to the electric infrastructure, with ratepayers footing the bill,” said Representative Kennedy. “This, coupled with substantial environmental implications, requires a regulatory framework that can balance the economic benefits of data centers with our energy and environmental concerns.”
“The legislation (2026-H 7331) requires the Public Utilities Commission to ensure that there are protections for rate payers in Rhode Island, by preventing data center operators from passing their electricity costs onto residential and other business customers. Data centers must pay their own way to protect rate payers from subsidizing the large-scale private energy demands of these data center projects and no costs related to construction of electric infrastructure should be allocated to other customers,” said Speaker Pro Tempore Kennedy.
It would also require each data center to submit an annual report to the Department of Environmental Management detailing daily water withdrawal, cooling technologies utilized and water recycling or reuse practices. It would allow the DEM director to require a data center to submit a water efficiency, conservation, or recycling plan as a condition of any permit issued.
“Data centers require a substantial amount of water for cooling purposes, and the goal is to require a closed loop system to recycle and reuse the water on-site and to prevent a major withdrawal of other water resources,” said Rep. Kennedy.
A final provision requires financial assurance, in an acceptable form to DEM that provides for site restoration in the event of abandonment or cessation of operations.
Rhode Island currently has seven data centers operated by four different providers. The legislation has been referred to the House Committee on Corporations.
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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