US House advances first bill addressing economic impact of data centre boom

On Wednesday, the US House of Representatives passed the Ratepayer Protection Act, the first legislation addressing economic issues tied to the expansion of data centres, marking a Republican majority's first step in tackling the industry's growth. The bill, which was voted 417 to 3, requires state utility regulators to consider if large electricity users, like data centres, should bear the added costs of the power infrastructure required to support them. This vote highlights the complex political landscape surrounding the US data centre boom.

President Donald Trump has vocally supported data centre development, viewing them as pivotal for AI leadership and wealth generation. He referred to data centres as the "oil of the next 20 to 25 years." However, the bill's passage comes as lawmakers on both sides of the aisle face growing concerns from constituents over the rising electricity costs associated with the industry's skyrocketing power demand.

In response to the vote, California Democrat Robert Garcia, who expressed that the measure falls short, believed it might garner support from members who hope for further reforms. Garcia emphasized that while the House Republicans are attempting to address the data centre issue, they have not done enough. He noted that a significant portion of their base voters are angry about the situation and called for more substantial protections.

Notably, a recent poll conducted by the University of Massachusetts Amherst revealed that only 11% of Americans would support the construction of an AI data centre in their community.