SCR 95

THE SENATE
S.C.R. NO.
95
THIRTY-THIRD LEGISLATURE, 2026
S.D. 1
STATE OF HAWAII
SENATE CONCURRENT
RESOLUTION
requesting the hawaii state
energy office to convene a working group to study the potential impacts of
large data centers on Hawaii's electric utilities, ratepayers, natural
resources, and climate goals.
���� WHEREAS,
rapid advances in artificial intelligence and cloud computing have led to a
dramatic increase in the construction of large-scale data centers, including "hyperscale"
facilities that house thousands of servers and require massive amounts of
electricity to operate; and
���� WHEREAS,
these facilities are essential components of the digital economy but are also
among the most energy-intensive types of commercial infrastructure; and
���� WHEREAS, data
centers consumed approximately 4.4 percent of total electricity in the United
States in 2023 and could consume between 6.7 percent and twelve percent of
total electricity by 2028 as demand for artificial intelligence computing
continues to expand; and
���� WHEREAS, the
rapid growth in electricity demand from data centers has raised concerns among
policymakers across the United States that large new power loads may require
costly investments in new generation, transmission, and grid infrastructure;
and
���� WHEREAS,
without appropriate regulatory safeguards, the costs of such infrastructure
investments may be borne by existing residential and small-business ratepayers
rather than by the data center developers whose projects create the demand for
those upgrades; and
���� WHEREAS,
policymakers in multiple states and in Congress have begun exploring measures
to ensure that data center developers pay their fair share of grid upgrade
costs and that electricity consumers are protected from higher utility bills
associated with data center expansion; and
���� WHEREAS, the
rapid expansion of artificial intelligence infrastructure has also raised
concerns regarding grid reliability and the potential for electricity shortages
or increased risk of outages if new large electricity loads are not carefully
planned and integrated into the electric system; and
���� WHEREAS, in
addition to electricity consumption, data centers can require substantial water
resources for cooling, with medium-sized facilities using tens of millions of
gallons of water annually and the largest facilities potentially using hundreds
of millions to billions of gallons each year; and
���� WHEREAS, the
siting and operation of data centers may also increase greenhouse gas emissions
if new fossil fuel generation is built or existing fossil fuel plants operate
more frequently to meet the facilities' electricity demand; and
���� WHEREAS,
article XI, section 7, of the Hawaii State Constitution establishes the State's
affirmative duty to protect, control, and regulate the use of Hawaii's water
resources for the benefit of its people; and
���� WHEREAS,
Hawaii's isolated island electric grids are uniquely sensitive to large new
electricity loads and require careful planning to ensure that new
infrastructure investments do not undermine the State's clean energy goals or
place additional financial burdens on residents; and
���� WHEREAS,
although Hawaii has not yet received proposals for large hyperscale data
centers, the rapid national growth of artificial intelligence infrastructure
suggests that such proposals may arise in the future; and
���� WHEREAS, it
is prudent for the State to proactively evaluate regulatory frameworks and
safeguards to ensure that any future data center development in Hawaii protects
ratepayers, safeguards environmental resources, and aligns with the State's
renewable energy and climate goals; now, therefore,
���� BE IT
RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, the House of Representatives concurring, that the
Hawaii State Energy Office is requested to convene a working group to study the
potential impacts of large data centers on Hawaii's electric utilities,
ratepayers, natural resources, and climate goals; and
���� BE IT FURTHER
RESOLVED that the working group is requested to consist of the following
members:
���� (1)� The Chief Energy Officer of the Hawaii State
Energy Office, or the Chief Energy Officer's designee, who is requested to
serve as chair of the working group;
���� (2)� The Director of Business, Economic
Development, and Tourism, or the Director's designee;
���� (3)� The Chairperson of the Board of Land and
Natural Resources, or the Chairperson's designee;
���� (4)� The Chairperson of the Public Utilities
Commission, or the Chairperson's designee;
���� (5)� Representatives from electric utilities in the
State, as invited by the chair;
���� (6)� Representatives from consumer advocacy and
environmental organizations, as invited by the chair;
���� (7)� Representatives from energy developers familiar
with data center needs, as invited by the chair; and
���� (8)� Other stakeholders, as invited by the chair;
and
���� BE IT FURTHER
RESOLVED that the working group is requested to examine potential regulatory
safeguards and policy options, including but not limited to:
���� (1)� Mechanisms to ensure that data center
developers bear the full cost of any new electricity generation, transmission,
distribution, or grid infrastructure required to serve their facilities;
���� (2)� Measures to protect residential and
small-business ratepayers from increased electricity costs associated with
large new electricity loads;
���� (3)� Requirements for transparency and reporting regarding
electricity consumption, water usage, and greenhouse gas emissions associated
with data center operations;
���� (4)� Strategies to ensure that data centers
operating in Hawaii are powered by renewable energy and do not undermine the
State's statutory clean energy goals;
���� (5)� Consideration of water use and other
environmental impacts associated with data center cooling systems;
���� (6)� Grid reliability considerations related to
large electricity loads on Hawaii's island grids;
���� (7)� Establishing a clear megawatt threshold
definition of "large" data center;
���� (8)� Requirements for data centers to maintain
sufficient on-site backup power and energy storage systems to reduce grid
dependency and enable automatic load curtailment during grid emergencies,
protecting the stability of the State's electric system;
���� (9)� Annual public reporting requirements for
centers documenting actual electricity consumption, water usage, and greenhouse
gas emissions, verified by an independent third-party, to ensure transparency
and accountability for regulators and the public;
��� (10)� Independent water resource impact assessment
requirements before permit issuance, including a detailed water conservation
plan to protect the State's water resources;
��� (11)� Direct integration of the findings of the
Working Group with the utility integrated grid planning processes under the
Public Utilities Commission's oversight; and
��� (12)� Any other regulatory safeguards that may be
necessary to ensure that data center development, if it occurs in Hawaii,
provides net benefits to the State and its residents; and
���� BE IT FURTHER
RESOLVED that the working group is requested to submit a report of its findings
and recommendations, including any proposed legislation or regulatory actions,
to the Legislature no later than twenty days prior to the convening of the
Regular Session of 2027; and
���� BE IT FURTHER
RESOLVED that the working group is requested to cease to exist on June 30,
2027; and
���� BE IT FURTHER
RESOLVED that certified copies of this Concurrent Resolution be transmitted to
the Director of Business, Economic Development, and Tourism; Chairperson of the
Board of Land and Natural Resources; Chairperson of the Public Utilities
Commission; Chief Energy Officer; President and Chief Executive Officer of
Hawaiian Electric; and President and Chief Executive Officer of the Kauaʻi Island Utility
Cooperative.
Report Title:�
Hawaii
State Energy Office; Large Data Centers; Working Group