LINCOLN — Nebraska lawmakers have given first-round approval to a bill backed by Jim Pillen that could pave the way for large-scale data center development in the state, potentially powered by a new natural gas facility.
The proposal, known as Legislative Bill 1261, is being carried by State Senator Barry DeKay of Niobrara. The bill would allow private companies to build major power generation facilities and partner with Nebraska’s public power systems to supply electricity to high-demand users such as data centers, while also potentially supporting the broader grid.
Supporters say the measure addresses growing energy demands driven by technologies like artificial intelligence and large data operations. DeKay noted that partnering with private companies could help speed up development and reduce financial risk for public utilities and their customers.
The bill also includes provisions designed to protect large power projects—those exceeding 1,000 megawatts—from eminent domain, a move intended to provide greater confidence for private investors.
The legislation comes amid reports of a potential large-scale data center project in southeastern Nebraska that could require significant energy capacity. While no specific project has been formally tied to the bill, discussions have referenced proposals that could rival or exceed the state’s largest existing power facilities.
The measure has drawn both support and criticism. Backers, including representatives from Nebraska Public Power District, Omaha Public Power District, and Lincoln Electric System, say it positions Nebraska to compete for major economic development opportunities.
However, opponents, including State Senator Danielle Conrad, have raised concerns about prioritizing large corporate energy users and the broader impact on the state’s resources and communities.
The bill advanced after about an hour of debate and will now move to the next stage of consideration in the Legislature.
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