Washington state’s Legislature has let a major effort to regulate data centers expire, marking a significant defeat for advocates of tighter oversight of the booming tech infrastructure sector.

House Bill 2515, which would have required data centers to shoulder more of the costs they impose on the power grid and disclose environmental impacts, failed to advance before key legislative cut-off dates and is now effectively dead for the 2026 session.

The bill drew support from lawmakers concerned about the rapid growth of electricity-hungry data facilities and their potential to shift energy costs onto ordinary ratepayers.

Sponsors argued that as data centers become one of the largest sources of electricity demand in the Pacific Northwest, guardrails are needed to protect grid reliability and ensure that utilities and technology companies cover the true cost of servicing these facilities.

The proposal included requirements for utilities to develop special tariffs for data center power use by 2027 and for operators to reduce grid demand during peak strain, as well as enhanced reporting on water, energy consumption and emissions.

However, House Bill 2515 encountered stiff opposition from major technology companies, which publicly and privately lobbied against the measure in its final stages.

Microsoft, which operates dozens of data centers in Washington and plans massive global infrastructure investments, described parts of the legislation as “anti-competitive” and urged lawmakers to reconsider key elements.

Industry groups and some utilities argued that the regulations singled out data centers unfairly compared with other large energy users and could deter economic investment in the state.

Despite amendments that removed a proposed annual energy fee and eased some clean energy deadlines, the bill failed to clear remaining procedural hurdles before the Legislature’s fiscal committee deadlines.

According to legislative trackers, House Bill 2515 — along with companion efforts to revise tax incentives and impose new standards — missed the required cutoff dates and is no longer active for this session.

The bill’s collapse underscores the complexity of balancing rapid tech sector growth with consumer protections, grid sustainability and environmental goals.

Washington’s position as a hub for artificial intelligence and cloud infrastructure has driven both economic benefits and intense debate over how to govern the resulting demand for electricity and resources.

Lawmakers and stakeholders are expected to revisit these issues in future sessions, even as the immediate effort to impose statewide regulations has stalled.