Executive Summary
State utility commissions are moving fast on large-load tariffs, and the terms are getting more demanding. As of June 2026, 23 states have approved at least one large-load tariff requiring data centers and other high-demand customers to bear the full cost of grid infrastructure their projects require. Another seven states have tariffs pending. The financial commitments embedded in these tariffs are now material to project economics and are showing up as siting constraints alongside traditional environmental and permitting considerations. Developers who are not accounting for these costs in early project screening are getting surprised later.
What Happened
The shift from incentive-focused data center policy to cost-allocation-focused policy accelerated significantly in 2025 and 2026. More than 300 data center bills were introduced in 30 states in the first six weeks of 2026 alone, a level of legislative activity that reflects how quickly the cost and grid reliability concerns have moved up the political agenda.
Several states have now moved from proceeding to approved tariff. Oregon’s POWER Act created a separate rate class for data centers and crypto facilities at 20 MW and above. Portland General Electric’s implementing tariff, Schedule 96, took effect July 8, 2026. Under it, large-load customers pay 100% of distribution upgrade costs, minimum demand charges…
