# Pillen signs law allowing private energy development as Nebraska pursues AI growth  
**Published:** 2026-06-02T19:03:19.000Z  
**Source:** [Nebraska Examiner](https://nebraskaexaminer.com/briefs/pillen-celebrates-law-boosting-private-energy-help-in-public-power-state-pushes-for-more-ai-growth/)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://lincolne.news/article/pillen-signs-law-allowing-private-energy-development-as-nebraska-pursues-ai

LINCOLN, Neb. — [Governor Jim Pillen ceremonially signed Legislative Bill 1261 Tuesday](https://nebraskaexaminer.com/briefs/pillen-celebrates-law-boosting-private-energy-help-in-public-power-state-pushes-for-more-ai-growth/), marking a shift in how Nebraska will handle electricity generation for massive industrial users, particularly data centers driven by artificial intelligence demand.

The law, introduced by State Sen. Barry DeKay at the governor's request and prioritized by State Sen. Mike Moser, permits private companies to build and operate power plants without public power districts being able to seize the facilities through eminent domain. [The measure applies to privately owned generation facilities serving large industrial customers with projected new electric loads of at least 1,000 megawatts](https://www.bairdholm.com/blog/nebraska-legislature-approves-bills-regulating-energy-storage-resources-data-centers-and-other-large-energy-loads/).

Pillen called the legislation "transformative" and said it positions Nebraska to remain competitive as electricity demand surges. "The demand for electricity is growing at such a rapid rate that influential companies can't expand in Nebraska at the pace they would like to," he said, citing conversations with corporate leaders including representatives from agricultural giant Cargill.

State Sen. Mike Moser said lawmakers faced significant pressure to structure the bill correctly given [the "fantastic amounts of money" involved in building new power plants](https://nebraskaexaminer.com/briefs/pillen-celebrates-law-boosting-private-energy-help-in-public-power-state-pushes-for-more-ai-growth/). Private energy developer Tenaska, which has been acquiring land in southeastern Nebraska, estimated new power plants carry multibillion-dollar price tags.

[The law takes effect July 17, 2026, and includes a sunset clause excluding contracts executed after December 31, 2031](https://www.bairdholm.com/blog/nebraska-legislature-approves-bills-regulating-energy-storage-resources-data-centers-and-other-large-energy-loads/).

The move reflects broader concerns about infrastructure costs. Moser and other supporters argued the law shields public power ratepayers by ensuring large corporations finance their own power generation rather than passing costs to residents. [Public power leaders said the law could help attract new economic development while reducing financial risk for utility ratepayers](https://www.1011now.com/2026/06/02/live-11am-nebraska-governor-senators-highlight-benefits-new-energy-law/).

Pillen also signaled continued support for artificial intelligence development even as he maintains his controversial position on data centers. "We have to win the war on artificial intelligence," he said, arguing that adversaries like Iran and China are investing heavily in electricity and AI. "It's a race." He stressed that AI and data centers are distinct, and that he wants more AI investment while maintaining his call for a pause on new data center construction.

[Nebraska data centers consumed 21% of the state's electricity in 2024, up from just 1% in 2018, with projections showing they could account for 41% of demand by 2035](https://nebraskapublicmedia.org/en/news/news-articles/nebraskans-cope-with-rising-demand-prices-for-electricity/). [The ceremonial signing involved state lawmakers, public power representatives and other stakeholders](https://www.1011now.com/2026/06/02/live-11am-nebraska-governor-senators-highlight-benefits-new-energy-law/).

## Sources

- [Nebraska Examiner](https://nebraskaexaminer.com/briefs/pillen-celebrates-law-boosting-private-energy-help-in-public-power-state-pushes-for-more-ai-growth/)
- [Baird Holm LLP — Legal analysis of LB 1261 provisions and implementation details](https://www.bairdholm.com/blog/nebraska-legislature-approves-bills-regulating-energy-storage-resources-data-centers-and-other-large-energy-loads/)
- [1011Now — Additional coverage of the law signing and public power district perspectives](https://www.1011now.com/2026/06/02/live-11am-nebraska-governor-senators-highlight-benefits-new-energy-law/)
- [Nebraska Public Media — Data on Nebraska's growing electricity demand and data center consumption trends](https://nebraskapublicmedia.org/en/news/news-articles/nebraskans-cope-with-rising-demand-prices-for-electricity/)

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This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Nebraska Examiner, enriched with 3 web searches. The original source is available at https://nebraskaexaminer.com/briefs/pillen-celebrates-law-boosting-private-energy-help-in-public-power-state-pushes-for-more-ai-growth/.