House passes bill to shield Americans from data center energy costs
The vote comes as lawmakers face increasing pressure to respond to the data center boom driven by the AI race.
On Wednesday, the House overwhelmingly approved the Ratepayer Protection Act, a bipartisan bill designed to shield Americans from potential energy costs associated with data centers. The measure, which passed with a decisive 417-3 vote, now moves to the Senate. The bill's introduction comes amid growing concerns over rising energy costs, partly driven by the surge of data centers fueled by the AI competition.
Republican Rep. Gabe Evans of Colorado, who faces a tough reelection bid, authored the legislation. Several other Republicans, aware of the campaign's focus on affordability and AI issues, joined as co-sponsors. The act mandates tech companies to cover the expenses of the new energy infrastructure necessary to support data centers, rather than shifting these costs to consumers.
It also urges state regulators overseeing utilities to set standards ensuring that large electricity consumers—such as large-scale data centers—pay for the costs of additional electricity generation.
House Speaker Mike Johnson emphasized that the legislation guarantees families won't be burdened with the expenses of AI infrastructure buildout or face rising energy bills. The International Energy Agency has projected that U.S. data center electricity consumption could more than double by 2030. This surge has raised concerns about the strain on the power grid, leading to backlash against data center development at state and local levels and political challenges for both parties nationally.
President Trump, while generally supportive of AI, has encouraged data center developers and tech firms to commit to building or purchasing their own power supply. The White House reports that hundreds of utility companies, alongside numerous data center operators and major AI companies, have pledged to this initiative. House Minority Leader Hakeem Jeffries acknowledged the legislation as a positive step but argued that more substantial actions are necessary.
GOP Rep. Brett Guthrie of Kentucky, chair of the House Energy and Commerce Committee, stressed the bill's role in keeping costs low and maintaining the U.S. leadership in the next-generation economy. Democratic Rep. Frank Pallone of New Jersey, the committee's ranking member, described the bill as imperfect, stating that it only addresses one aspect of a complex issue. Pallone pledged that addressing these concerns is only the beginning.
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