The proliferation of data centers across the United States has lawmakers, energy providers, and utility commissions deliberating how to accommodate their massive energy demands without overburdening the current system. One of the challenges states with high demand for data center development face is determining realistic projects from speculative, less feasible ones, as Akerman Data Centers and Digital Infrastructures Practice Chair James Grice told Law360. Utility companies have started demanding high deposits for large power requests in order to ensure only serious projects move forward – but they should be careful, lest burdensome requirements scare off legitimate developers, warns James.

"It's a balancing act for all these utilities to not go too far with some of these measures, but go far enough to make sure that they don't get left in a hardship position," James said.

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