LINCOLN — Nebraska lawmakers gave first-round approval to a bill backed by Gov. Jim Pillen that may lay the foundation for a massive data center in southeastern Nebraska powered by a new natural gas power plant.

LB1261 would allow private companies to build large-scale power plants and partner with Nebraska's public power system. This would supply major power users and possibly supplement the public power grid. Pillen pushed the proposal, and State Sen. Barry DeKay of Niobrara is carrying it in the Legislature. DeKay's introduction of the bill did not mention a specific project. He instead described growing power needs that features like AI and data centers help drive.

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