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House Passes Bill to Address Data Center Concerns
Confirmed
In Short: The U.S. House passed a bill aimed at ensuring AI data centers pay for their energy needs, addressing voter concerns.
The U.S. House of Representatives overwhelmingly approved a bill Wednesday aimed at addressing the growing concerns over the impact of artificial intelligence (AI) data centers on energy prices and water supplies.
Supporters of the bill, including Rep. Gabe Evans, R-Colo., argued that the U.S. must build out its power systems to meet the demand for AI development, or risk becoming dependent on countries like China.
However, critics like Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee, noted that Americans have real concerns about the impact of data centers on their utility bills and water supplies.
The bill, which passed 417-3, requires state utility regulators to consider a standard by which utilities charge data centers for the full cost of new power and transmission upgrades needed to serve them.
Rep. Pallone emphasized that the bill is just the beginning of addressing these issues, promising further action to protect families and businesses from higher utility bills.
While the bill aims to protect local communities, it has faced criticism for not addressing the rising costs of AI data center development, with some lawmakers calling for a full moratorium until safeguards are in place.
What's confirmed
- Supporters of the bill described the legislation as a “modest first start” in protecting families and businesses from higher utility bills.
- “I promise that this bill is not the end of our focus on these issues. It’s only the beginning,” said Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee.
- Some lawmakers are calling for a full moratorium on AI data centers until safeguards are put in place that ensure AI is safe and effective and that the data centers don’t increase utility prices or harm the environment.
- House Majority Leader Steve Scalise, R-La., said the development of a data center in Richland Parish in his home state generated bonuses of up to $50,000 for local teachers as a result of increased tax collections.
- But Pallone said Americans have real concerns about what data centers will mean for them, adding that President Donald Trump and Republican congressional leaders have swept those concerns to the side.
- Nearly two-thirds of Americans are extremely or very concerned about data centers’ impact on energy prices and 57% are extremely or very concerned about the impact on water supplies.
- Rep. Gabe Evans, R-Colo., the bill’s sponsor, said the U.S. can either build out its power systems to meet demand or become dependent on countries like China for its digital infrastructure.
- “We cannot accelerate this growth on the back of Americans working hard to pay their electric bills at the end of the month,” Evans said.
What's still developing
- He noted that Trump posted on social media that communities opposed to data centers must want to end up being “backwards and poor.” “The president in my opinion is out of touch on this issue and the American people are demanding action,” Pallone said.
- Speaking on the House floor Tuesday, Evans said that the buildout of data centers is necessary to ensure the U.S. remains competitive with China in the growth of artificial intelligence.
- “But with that growth our demand for energy is also skyrocketing, and some people have very understandable reservations and questions about data centers,” said Evans.
- Senate Majority Leader John Thune, R-S.D., has said it was possible the House bill could clear the Senate before the elections, though that would likely require unanimous consent given a full floor agenda this month.
- Husted is facing a tough race against ex-Sen. Sherrod Brown, D-Ohio, who has been targeting Husted’s past support for data centers when he was the state’s lieutenant governor.
- The House bill “does nothing to meaningfully address the rising costs of AI data center development,” Senate Energy and Natural Resources ranking member Martin Heinrich, D-N.M., said in a statement.
- The House bill would codify portions of the White House’s “Ratepayer Protection Pledge,” a voluntary agreement signed by over 300 utilities, electric cooperatives, hyperscalers and others to sign.
- Voting on the measure would acknowledge that many members have constituents who’ve expressed concerns about the effect of data center development on consumer energy costs, he said.