Data Centers and Energy Needs Create Controversy

By Gordon Hopkins A bill under consideration by the Nebraska Legislature proposals for data centers, and their exorbitant energy needs, are generating controversy in Nebraska.Nebraska has become a key data center hub. Companies operating facilities in the state include Google, Meta and First National Technology Solutions. It is seen by some as a potential financial boon. However, data centers and AI also dramatically increase demand for power and water for cooling and some people worry about the drain on resources.In the Legislature To address the ever-increasing power needs of data centers, Senator Barry DeKay sponsored LB (Legislative Bill) 1261 at the request of Governor Jim Pillen. According to the bill’s statement of intent, “The unprecedented demand for new generation resources and related infrastructure has significantly constrained the global supply chain for new generation and other necessary equipment. In order to help alleviate this near-term supply chain challenge, it is the intent of this legislation to allow public power utilities to limit their power of eminent domain and collaborate with privately owned generators who may have earlier access to such generators and related equipment to help meet Nebraska’s growing electricity needs.” Nebraska is unique in the nation in that it is the only state served entirely by publicly-owned utilities. LB 1261 would change that, allowing data centers to construct and privately own electric generation facilities.Last week, senators voted 34-7 to advance LB 1261 to select file. GoogleOne of the opponents of the bill is Senator John Cavanaugh, who cited a recent report from Flatwater Free Press, which said, “Google is considering building a data center in Nebraska that could require more than three times the amount of power the entire city of Lincoln uses at peak demand in the summer.”Other opponents, such as Senator Terrell McKinney and Senator Danielle Conrad, worry there are not enough safeguards to protect the state’s natural resources or electricity ratepayers. Flatwater Free Press also reported that Senator Myron Dorn, whose district includes Gage County and parts of southeast Lancaster County, has signed an agreement with an Omaha-based energy company, Tenaska, to allow the company the exclusive right and option to purchase an estimated 80 acres of his land in Gage County.

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