What should state policymakers do about data centers?

State policymakers face unprecedented pressure from hyperscale data centers that demand rapid grid integration, often shifting financial risks onto ordinary ratepayers. These facilities operate on timelines and scales that outpace traditional utility planning, frequently leading to stranded assets and increased fossil fuel dependency. Effective management requires updating regulatory frameworks to include verified demand forecasting, cause-and-pay interconnection requirements, and performance-tied incentives that hold developers accountable. Saleem Chapman, from Climate Cabinet, emphasizes that states must move beyond speculative growth models by implementing scenario-based planning and ensuring data centers provide grid-balancing flexibility. By requiring hourly clean energy matching and prioritizing local siting standards, policymakers can protect vulnerable communities and ensure these massive energy users contribute to a sustainable, reliable grid rather than becoming a systemic liability.