Bill to curb AI data center utility costs hits snag in Senate

An attempt by Senate Republicans to quickly pass a bipartisan bill to prevent data center-related utility cost increases failed Thursday, amid Democratic concerns that it would rely only on voluntary commitments from states and data center developers.

Congress this week attempted to rush the measure, dubbed the Ratepayer Protection Act, in the waning days before November’s election, as data centers have become an increasingly contentious issue. But Sen. Martin Heinrich, D-N.M., the top Democrat on the Senate Committee on Energy and Natural Resources, blocked the proposal, after its sponsor, Sen. Jon Husted, R-Ohio, requested unanimous consent to quickly vote without a roll call.

Heinrich’s move makes it all but assured that the legislation won’t advance out of Congress before the election, as the Senate is set to leave town in two weeks.

The legislation doesn’t go far enough, Heinrich said, echoing concerns from progressive Democrats and environmental groups that it wouldn’t prohibit states or developers from raising costs for residents related to the facilities, which store data, process information and have helped fuel the AI boom.

“It’s not enough to tell states to consider making data centers pay for grid updates,” Heinrich said from the Senate floor Thursday, as he quashed the measure. “Rather than voluntary pledges or suggestions to states, Congress needs to pass real legislation with real teeth.”

Despite the setback, Husted, who is in a tough reelection fight for his seat, said he would continue to work toward the passage of the bill, which he introduced in July.

Congress took up the measure this week in the waning legislative days before November’s midterm elections, and as outrage over the proliferation of artificial intelligence data centers have grown nationwide.

The House passed the legislation Wednesday night on a 417-3 vote. Three progressive Democrats — Reps. Summer Lee of Pennsylvania, Delia Ramirez of Illinois and Rashida Tlaib of Michigan —were the only opponents.

The bill would establish a regulatory framework that states could choose to adopt. They would aim to require AI data centers with a demand of 100 megawatts or more to cover the costs of building new power sources, transmission lines and other infrastructure, rather than passing those costs down to consumers. 

“America’s expected to build the equivalent of 1,000 major data centers during the next five years … with more than 2,000 projects currently being proposed or tracked,” Husted said on the Senate floor. “And we need to protect American ratepayers from footing the bill. The clock is ticking, and we have no time for delay.”

Data centers could be a key issue this November, particularly in states that have seen a crush of development. Husted has been