Covered data centers must obtain a utility service contract that is submitted to and approved by the Regulatory Commission of Alaska before service can be provided. The contract may not increase the risk of inadequate fuel supplies for any public utility in the state. (the commission must review and approve the contract)

The data center must bear all utility infrastructure costs incurred primarily to serve it, including its allocated share of infrastructure jointly used with other customers. Customer payment may be required through construction, contributions toward construction, or rates that include those costs. (directly assign those costs to the customer)

Transmission infrastructure built specifically to serve a data center cannot initially be treated as part of the backbone transmission system for allocating backbone-system costs; it may be considered for that designation only after review at the end of the contract term if other customers also use it. (may not initially be considered part of a backbone transmission system)

All variable utility costs that change because of service to the data center must be analyzed and assigned directly to the data center through a separate customer-specific power or gas cost adjustment. The arrangement may not increase those adjustments for other customers. (assign those costs directly to the data center)

The utility contract must include a backup-power and reliability plan that prioritizes renewable generation, storage, and demand response; limits fossil-fuel backup to emergencies and testing; requires annual reporting of diesel or other fossil-fuel backup use; and prohibits shifting fuel or reliability risks to other customers. (limits fossil fuel backup generation to emergencies and testing)

If serving the data center requires more than $1 million in utility capital investment, the data center must provide financial security sufficient to cover all utility costs if it fails to perform under the contract. (capital investment costs in excess of $1,000,000)

Before the commission may approve the utility contract and before construction begins, the data center must enter into a community benefit agreement with the municipality. If it does not, the municipality may sue for an injunction stopping construction or preventing operation. (before the commission approves the contract)

The community benefit agreement must require a waste-heat recovery assessment, implementation of practicable recovery or an agreed payment for local thermal projects, a water-use and wastewater plan, payment or arrangements for broadband interconnection costs, and a digital-equity contribution for local digital infrastructure. (require a digital equity contribution)

Before the commission may approve the utility contract, the data center must file an end-of-life decommissioning and recycling plan with the Department of Environmental Conservation. The plan must cover dismantling, equipment removal, secure data destruction, asset recovery, site restoration, and regulatory and environmental compliance. (must file with the Department of Environmental Conservation)

The commission may treat geographically dispersed buildings and equipment under common ownership or control as one facility, which can prevent separate sites from being treated as below-threshold facilities. (the commission may determine that the infrastructure is a single facility)

The contract, community-agreement, and decommissioning requirements do not apply to a data center consuming less than 15 megawatts of peak electric demand and less than 1.5 billion standard cubic feet of gas annually; facilities meeting or exceeding either threshold are not covered by this exception. (does not apply to a data center that consumes less than)

Utilities must enter into service contracts with data centers and submit them to the Regulatory Commission of Alaska for approval. Once approved, the contract’s terms govern the utility’s services and facilities for the data center, providing a defined framework for obtaining and continuing utility service.

A data center’s infrastructure costs may be recovered through several arrangements, including the data center constructing the infrastructure itself, making contributions toward construction, or paying utility rates that include the costs. This gives data centers and utilities flexibility to finance and build necessary facilities.

Transmission infrastructure built specifically to serve a data center may not initially be treated as part of the backbone transmission system for allocating backbone-system costs. It may be considered for that status only after the contract ends and a review finds that other customers also use it.

Approved contracts must include a backup-power and reliability plan that allows renewable generation, storage, demand response, and limited diesel or other fossil-fuel backup use for emergencies and testing. This provides a legally recognized way for data centers to maintain operations during reliability events, subject to reporting and limits.

The measure does not apply to a data center consuming less than 15 megawatts of peak electric demand and less than 1.5 billion standard cubic feet of gas annually. Facilities below both thresholds are therefore exempt from the measure’s special contract, community-benefit, and decommissioning-plan requirements.