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SR 125

Urges states in PJM Interconnection region to require data centers to obtain electricity from new zero- or low-emission sources of energy.

2024-2025 Regular Session Introduced by Linda Greenstein and 1 co-sponsor

Urges PJM states to require data centers to buy electricity from new zero- or low-emission sources to ease grid stress and accelerate clean energy.

Reported out of Senate Committee, 2nd Reading
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Bill Summary · SR 125

Summary — SR 125 (2025)

Title: Urges states in PJM Interconnection region to require data centers to obtain electricity from new zero- or low-emission sources of energy
Classification: Senate Resolution (non‑binding)
Subject: Energy
Introduced: February 18, 2025
Status (as reported): Reported favorably out of Senate Environment & Energy Committee (March 17, 2025); placed for 2nd reading

Purpose / Intent

SR 125 is a legislative resolution urging states served by the PJM Interconnection regional transmission organization to adopt policies that require data centers to source their electricity from new zero‑ or low‑emission energy resources. The resolution frames this action as a means to reduce grid stress from rapidly growing data center demand and to accelerate deployment of clean energy.

Key provisions

  • Expresses the Legislature’s intent that states in the PJM region adopt measures requiring data centers to obtain electricity from new zero‑ or low‑emission sources.
  • Requests transmission of copies of the resolution to the governors (and in one instance the Lt. Governor) of states served by PJM (including New Jersey, Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia).
  • The resolution does not create regulatory requirements, enforcement mechanisms, funding, or detailed standards (e.g., definitions of “new” or “low‑emission,” or acceptable procurement methods such as PPAs, on‑site generation, or renewable energy certificates).

Rationale and supporting findings (as stated)

  • Data centers are energy‑intensive and account for a meaningful and growing share of U.S. electricity consumption (cited: ~4% now; projected up to ~9% by 2030).
  • PJM has identified rising data center demand as a driver of regional peak load growth and transmission/generation needs.
  • Encouraging zero‑ and low‑carbon generation to serve data centers can help maintain grid reliability and attract clean‑energy investment.

Who would be affected

  • Data centers operating or planning to locate in PJM states — the resolution encourages state policies that could change procurement expectations or siting incentives.
  • Electric utilities, independent power producers, and clean energy developers — potential increased demand for new clean generation and interconnection capacity.
  • State policymakers and regulators in PJM states — the resolution urges them to consider or adopt enabling policies.
  • Consumers and the grid — potential indirect effects on grid planning, generation mix, and long‑term emissions.

Limitations and uncertainties

  • As a resolution, SR 125 is non‑binding; it urges action but does not impose legal requirements.
  • The resolution does not specify definitions, timelines, compliance mechanisms, or cost/reliability tradeoffs; actual policy outcomes would depend on subsequent state legislation or regulation.
  • The policy implications for data center economics, project permitting/interconnection, and utility rates are not specified and would vary by state.

Sponsors and related measures

  • Primary sponsors include: Mike Hodges, Marty Harbin, Kenya Wicks, Clint Dixon, Chuck Payne, Greg Dolezal, Sally Harrell, Elena Parent, Larry Walker III, and others (full sponsor list in bill text).
  • Related/companion measure: SCR 155.

Procedural notes

  • Introduced February 18, 2025; reported favorably by the Senate Environment & Energy Committee on March 17, 2025; placed for second reading. (The resolution record shows subsequent committee and calendar actions consistent with consideration and transmittal to governors.)

Compiled from official sources — confirm details with the bill’s official record.

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