U.S. House passes bill meant to offset data center energy costs

(The Center Square) – The U.S. House nearly unanimously passed a bill Wednesday night aimed at shielding ordinary Americans from electricity price hikes caused by data centers.

Lawmakers have touted the Ratepayer Protection Act as a bill requiring owners of data centers drawing more than 100 MW of power plugging into the electric grid to pay for the associated grid upgrade costs.

“Across the country, communities are seeing proposals for new data centers that will bring jobs, investment and new technological capabilities, but also raise important questions about how these facilities will affect local electric grids and the nearby communities,” Rep. Bob Latta, R-Ohio, a senior member of the House Energy and Commerce Committee, said after the 413-3 vote.

“One question should have a clear answer: American families should not have to pay higher electricity bills so large technology companies can build and operate data centers.”

Yet the bill, which now heads to the Senate, doesn't guarantee that companies, rather than ordinary ratepayers, will shoulder all utility costs for their data centers.

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The legislation only mandates that state public utility commissioners “commence consideration” of implementing such rules within one year of the bill becoming law.

The National Association of State Energy Officials specifically praised the legislation, “which does not mandate a specific approach in each state and instead calls for state ‘consideration’ of a standard for large-load data centers that results in data centers paying the full, incremental costs of electric system upgrades.”

The House vote arose in response to concerns ballooning nationwide over AI’s impacts on corporate transparency, cybersecurity risks, and the economy.

Communities across the country have rebelled against the rapid construction of data centers, even while the White House remains ardently opposed to a data center moratorium or any regulations on AI that would “harm innovation.”