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Data center regulations in Rhode Island

Graded Light and steady. 7 laws, orders, rulings and local actions, each with its source, reviewed 27 October 2026.

Reviewed 27 October 2026 · Part of the Data Center Rulebook

No state rules; 2026 incentive and cost bills stalled; three towns adopt bans or pauses

Light→ SteadyGrid: ISO-NE7 items
3in force
0pending
3local pauses
narrowedtax break
2.2combined index (5 most)
19.9cper kWh, industrial
27 October 2026reviewed
Regulation1.8 / 5 · no rules
  1. Grid connection1

    No large-load tariff, study rule or self-supply rule was found; both 2026 bills were incentive bills that died by June 11, 2026.

  2. Power rates1

    No large-load tariff or cost rule exists; nothing is in force.

  3. Siting and land use3

    Smithfield (May 2026) and Charlestown (August 2026) bar data centers outright and Westerly has a one-year moratorium (July 2026); no state siting rule.

  4. Tax treatment3

    No incentive exists and S2346 to create one died June 11, 2026, so this scores 3: nothing to lose, nothing to gain.

  5. Permits and water1

    No water, air or disclosure rule exists.

Scored on rules in force, 1 to 5. 5 is the most regulated. Pending rules set the arrow.

Rhode Island has almost no data center pipeline and no state law aimed at the sector. In the 2026 session lawmakers considered bills to create property, sales and use tax exemptions for qualified data centers (S2346 and H7695), bills to make data centers of 50 MW or more pay their own grid costs and report water use (S2776 and H7331), and bills for a separate 20 MW large-load rate class (S2427 and H7270). All were held for further study and died when the session ended on June 11, 2026. No state large-load tariff, moratorium or self-supply rule exists. At the local level Smithfield (May 2026) and Charlestown (August 2026) amended zoning to bar data centers and Westerly adopted a one-year moratorium in July 2026.

Outlook for the next year

The 2027 session opens in January 2027 and the incentive, cost-allocation and large-load tariff bills could all return; none had been refiled as of October 27, 2026. Westerly's one-year moratorium runs to about July 2027, and Hopkinton's council had a data center moratorium on its September 2, 2026 agenda. Rhode Island Energy has said data center costs would be reviewed separately from its base rate case. Nothing else is scheduled that was found.

Does Rhode Island have a data center moratorium in force?

No statewide moratorium, but 3 local pauses are in force as of 27 October 2026, in Charlestown, Smithfield, Westerly. Proposals and expired pauses are not counted.

Is Rhode Island tightening or loosening its rules on data centers?

Steady. Rhode Island is graded Light, which means incentives in place and few new obligations. No state rules; 2026 incentive and cost bills stalled; three towns adopt bans or pauses. The outlook above says what is pending.

Which grid operator covers Rhode Island?

Rhode Island sits in ISO-NE. The grid operator decides how a new large load is studied, what it must bring or pay, and whether it can be curtailed first; the state decides siting, permits, tariffs and incentives.

Has Rhode Island cut its data center tax incentive?

No. Rhode Island's data center incentives were not pulled back in 2025 or 2026 as of 27 October 2026.

How regulated are data centers in Rhode Island?

On Genloop's five-line rubric (1 least regulated, 5 most) Rhode Island scores grid connection 1, power rates 1, siting and land use 3, tax treatment 3, permits and water 1, a mean of 1.8. The most regulated line is tax treatment: No incentive exists and S2346 to create one died June 11, 2026, so this scores 3: nothing to lose, nothing to gain.

Every item, newest first

7 items: each is a law, order, tariff, ruling, utility action or local decision that changes what a data center must do, pay or disclose, or where it may be built. Failed and pending measures are marked. Each links to its source.

  1. LocalCharlestownAug 2026moratoriaIn force

    Charlestown bans data centers and battery storage

    The Town Council unanimously approved an ordinance on August 11, 2026 that bars data centers townwide and also bars battery energy storage projects, the second municipal data center ban in the state.

    Source: ecori.org
  2. LocalWesterlyJul 2026moratoriaIn force

    Westerly one-year moratorium on data centers

    The Town Council voted 7-0 on July 27, 2026 for a one-year moratorium on development or construction of data centers while the Planning and Zoning Commission drafts rules on where, if anywhere, they would be allowed.

    Source: thewesterlysun.com
  3. State lawJun 2026incentivesFailed

    S2346, data center tax exemptions

    Would have given property, tangible, sales and use tax exemptions for 30 years to data centers investing at least $200 million in an enterprise zone or $400 million elsewhere. Introduced January 30, 2026, held for further study March 10, and dead as of June 11, 2026.

    Source: billtrack50.com
  4. State lawJun 2026incentivesFailed

    H7695, House companion on data center tax exemptions

    Heard in House Finance on May 7, 2026, with the Data Center Coalition submitting a May 5 letter in support. Held for further study and died when the session ended on June 11, 2026.

    Source: rilegislature.gov
  5. State lawJun 2026costs and tariffsFailed

    H7331 and S2776, data centers of 50 MW or more pay own grid costs

    Introduced January 28, 2026 (H7331, Rep. Kennedy) and March 4, 2026 (S2776, Sen. DiPalma). Data centers with demand of 50 MW or more would have paid the generation, transmission and distribution costs they cause, with no recovery from other customers, and reported water use annually to DEM with financial assurance for site restoration. Both were held for further study and did not become law in 2026.

    Source: upriseri.com
  6. State lawJun 2026costs and tariffsFailed

    S2427 and H7270, separate rate class for 20 MW large energy users

    Would have defined a 20 MW large energy use facility and required the PUC to set a separate service class, tariff, cost allocation and contracts of at least 10 years. Held by Senate Commerce on March 10 and House Corporations on April 7, 2026, and died in committee.

    Source: servercountry.org
  7. LocalSmithfieldMay 2026moratoriaIn force

    Smithfield zoning amendment bars data centers in all districts

    The Town Council voted 4-1 on May 5, 2026 to define data centers and make them not permitted in any zoning district, effective 30 days later. Hanton City Investments filed an application for a complex including a data center on May 4, one day before the vote, and a dispute over whether that application is reviewed under the earlier rules is pending.

    Source: oceanstatemedia.org

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