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House Passes Bill to Address Data Center Concerns
Confirmed
In Short: The U.S. House unanimously approved a bill aimed at ensuring AI data centers cover the costs of necessary grid upgrades, addressing growing voter concerns.
The U.S. House of Representatives overwhelmingly passed a bill Wednesday aimed at addressing the impact of artificial intelligence (AI) data centers on energy costs and utility bills.
Supporters of the bill described it as a modest first step in protecting families and businesses from higher utility bills, with Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee, promising it was just the beginning.
The legislation 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. Gabe Evans, R-Colo., the bill’s sponsor, emphasized the need for the U.S. to build out its power systems to meet the growing demand for AI data centers, or risk becoming dependent on countries like China.
However, some lawmakers are calling for a full moratorium on AI data centers until safeguards are in place to ensure AI safety and effectiveness, and to prevent increases in utility prices or environmental harm.
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
- All of Alabama’s House members voted in support of the data center bill.
- 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.
- “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.