Rep. Mickelsen Seeks to Control Data Centers and Energy Costs, Clarify Transportation Laws

IDAHO FALLS — With the Artificial Intelligence sector expanding and data centers increasing, a local legislator is taking action to protect residents from rising power costs.

At this time, according todatacentermap.com, Idaho has just 17 data centers, with one more under development in Idaho Falls.

As per the U.S. Department of Energy, the Idaho National Laboratory is among the sites located in the United States.the department has selectedfor American businesses to construct and operate artificial intelligence data centers on government-owned land.

On the western side of the Gem State, Meta is planning to construct a data center in Kuna, according tothe Idaho Statesman.

This new facility will be a 1 million-square-foot server farm and is added to three smaller data centers located in Boise.

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One aspect that sets Idaho apart is its electricity costs for such data centers, a matter of concern for a local lawmaker.

Rep. Stephanie Mickelsen, a Republican from Idaho Falls, stated that she intends to propose new legislation concerning investor-owned utilities and data centers.

According to the Office of the Governor for Energy and Mineral Resources, there are five investor-owned utilities.

What's occurring is that there's a lot of demand for AI data centers, and they're traveling across the country looking at different states where the electricity rates are the lowest," Mickelsen stated. "Idaho has some of the most affordable power rates in the entire western region of the United States.

Her worry is that these utility companies might increase charges for existing customers to handle the power demands of the new data centers.

She mentioned that the usual rise in utility costs ranges from one to two percent, but these increases could potentially double because of the growth rate.

According to the Idaho Capital Sun, Idaho Power — one of the five investor-owned utilities — anticipates the customer base will grow from 648,000 to 867,000 by 2045. In addition to significant projects such as Meta's proposed data center in Kuna, Idaho Power customers are projected to experience higher rates.

"We want to ensure that growth is funded by growth itself, rather than current Idaho residents covering the costs for data centers that could generate billions of dollars, leaving Idahoans with the burden," Mickelsen stated.

Driver's Permits, Vehicles, and Penalties

Another law that Mickelsen is working to fix is a gap in the rules regarding driver's licenses and traffic citations.

She mentioned that many years ago, when the Legislature was exploring methods to handle fines and a resident's eligibility for a driver's license, a particular bill failed to specify how a county could ensure collection of those fines.

"They removed the section that stated if you didn't pay your traffic tickets, your license would be suspended. As a result, there's $23 million in unpaid fees that counties are unable to collect because they lack a method to compel individuals to settle their fines and tickets," Mickelsen said.

When asked how this happened, Mickelsen stated that it was a matter that had not been brought to the attention of the Legislature until recently.

Another consideration is making sure that both present and upcoming residents who relocate to Idaho register their vehicles within the state.

"135,000 vehicles per year are not being registered in Idaho. Therefore, we will impose a $75 fee if they aren't registered within 30 days of entering the state," Mickelsen stated.

The problem is that people are seeking the most affordable state to register their vehicles, yet they use them within Idaho.

"Although you may receive some benefit from the gas tax, they are still not involved, as a portion of the funds collected through your registration also supports our state police," Mickelsen stated.

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