February 22, 2026

Top news (3)

• Virginia bills seek oversight and cost allocation for data centers: Two Virginia bills (SB 619 and SB 339) passed crossover and would (i) require State Corporation Commission (SCC) oversight for “high-load” data centers via a Certificate of Operation for facilities ≥90MW, and (ii) reallocate transmission costs toward large-load users. SB 339 cites up to $28bn in transmission costs and $100–$300bn in capex.

• Trump-backed Ohio gas plant could become largest US polluter: A proposed 9.2GW gas-fired plant in Ohio—reportedly led by SoftBank, valued at about $33bn—is framed as supporting growing data-centre demand in PJM. Analysts estimate potential emissions of ~16–19.4m metric tons CO2/year.

• Trump EPA Repeals MATS to Support Coal-Powered Data Centers: The US EPA finalized repeal of the Mercury and Air Toxics Standards (MATS), explicitly linking the rollback to keeping coal-fired generation online for expanding AI data center load. State attorneys general (NY, CA, IL) and environmental groups are preparing litigation.

Americas

United States — Policy, permitting, and cost allocation

• Virginia

  • Virginia bills seek oversight and cost allocation for data centers
    • SCC oversight / permitting: SB 619 and SB 339 would introduce a Certificate of Operation requirement for ≥90MW facilities.
    • Transmission cost shifting: Proposal to reallocate transmission costs to large load users (relevant for hyperscale clusters and large campuses).
    • Planning methodology: SB 339 requires Dominion to use Probability of Dispatch by 1 Jan 2028.
    • Scale of implied build-out: SB 339 warns of up to $28bn transmission costs and $100–$300bn capital expenditures (as cited in the bill discussion).

• Federal environmental regulation

  • Trump EPA Repeals MATS to Support Coal-Powered Data Centers
    • Direct linkage to load growth: EPA explicitly tied the MATS repeal to maintaining coal generation for AI/data-centre power needs.
    • Litigation risk: State AGs (NY, CA, IL) plus Sierra Club and Earthjustice preparing legal challenges.
    • Notable stakeholder dynamic: Major tech firms (Microsoft, Google, Amazon, Meta) had not publicly opposed the repeal (per the story).

United States — Power supply build-out and grid context

• PJM / Ohio
  • Trump-backed Ohio gas plant could become largest US polluter
    • Asset scale: Proposed 9.2GW gas plant in Ohio.
    • Economics & sponsorship: Reported ~$33bn value; reportedly led by SoftBank.
    • Strategic framing: Positioned to supply electricity for growing data-centre demand in PJM.
    • ESG/permits sensitivity: Emissions estimate ~16–19.4m tCO2/year suggests heightened permitting and reputational scrutiny.

United States — Local water and environmental scrutiny

• Michigan (local stakeholder focus)
  • Northern Michigan nonprofits outline top environmental priorities for 2026
    • Local nonprofits highlighted that they are monitoring proposed mega-data centers’ water/energy impacts.
    • Timed policy/funding markers mentioned: GLRI renewal in October 2026.

Europe

Macro signals: AI infrastructure as a growth driver

• Italy / Euro-area context
  • Panetta: AI-led data centres reshape global trade and finance
    • Banca d’Italia Governor Fabio Panetta cited AI-driven investment, notably data centre construction, as a major driver of 2025 growth.
    • He urged stronger European coordination on energy, financial integration, and digital currency projects (Pontes/Appia), while flagging broader market/monetary risks.

Asia

India — Capacity additions and engineering services exposure

• Data centre capacity expansion

  • L&T to expand data centre capacity to 32 MW
    • Operator: Larsen & Toubro.
    • Near-term capacity: Expanding operational data centre capacity to 32MW by March.
    • Demand drivers cited: Cloud services, AI workloads, and enterprise digitization.
    • Build emphasis: “Energy-efficient” and “internationally standard” facilities (per the story), leveraging L&T’s engineering and renewable energy experience.

• Services / “picks and shovels” exposure

  • Tata Consulting Engineers grows with India power and data centres
    • Financials: TCE reported total consolidated income of ₹2,092 crore for 2024–25.
    • Operating profile: Nearly 8,000 engineers; revenues split evenly between India and international markets.
    • Positioning: Operates as an owner’s engineer/project consultant (OEPC) with growth cited across power and data centres (among other sectors).

Sustainability, disclosures, and efficiency (cross-region)

• Report warns AI’s energy and water footprint threatens climate
  • Arthur D Little estimates generative AI expansion could consume up to 3% of global electricity by 2030, driven by rapidly expanding data centres.
  • The report highlights rising water use alongside power demand.
  • Institutions including MIT, UNEP, and the IEA urged: mandatory disclosures, tighter efficiency standards, and alignment with renewable energy.

Two-line wrap

Regulatory and stakeholder scrutiny is increasingly targeting how data-centre loads drive transmission build, generation mix, and environmental impacts. Investors should expect faster iteration on planning methods, disclosure expectations, and litigation/permits risk around high-emitting supply proposals.