Senate Democrat blocks bill to shield Americans from data center energy costs

A Senate Democrat thwarted a Republican-led effort on Thursday to pass legislation protecting Americans from energy costs linked to data centers, despite the bill obtaining widespread bipartisan backing in the House the previous day. Known as the Ratepayer Protection Act, the measure aimed to compel technology firms to shoulder the expenses of new energy infrastructure for data centers rather than passing these costs onto consumers.

The House had approved the legislation on Wednesday with a 417 to 3 vote. GOP Senator Jon Husted of Ohio attempted to approve the bill through unanimous consent on Thursday, which permits any single senator to halt its passage. However, Democrat Senator Martin Heinrich of New Mexico, the ranking Democrat on the Senate Energy and Natural Resources Committee, objected.

Heinrich argued that the measure lacked sufficient action, stating that while both he and Husted agreed that data centers could lead to increased costs for American families, the Ratepayer Protection Act did not go far enough. He emphasized the need for comprehensive legislation with strong provisions, noting that his own bill, the GRID Savings Act, aimed to alleviate energy prices by engaging data centers in community engagement and promoting water conservation, clean energy, and battery storage to protect communities from air pollution.

GOP Senator Bernie Moreno of Ohio, however, objected to Heinrich's bill, criticizing him for preventing the House-passed legislation that would have provided immediate relief to Americans. Moreno derided Heinrich's actions as a "do-nothing Congress" and claimed that the Senate had effectively achieved that objective. The situation unfolded as affordability concerns remained prominent for voters as the midterm elections approached, alongside new discussions surrounding data centers and artificial intelligence.

Several House Republicans considering competitive races in the midterms had endorsed the bill as co-sponsors in recent weeks. Husted, who is facing a tough contest in Ohio against former Senator Sherrod Brown, had championed the effort in the Senate. Husted faced criticism for his prior backing of data centers, an issue that had gained significant attention in the Ohio Senate race.

His campaign denounced the data center issue as the "anchor around his neck." When Husted sought unanimous consent to pass the measure on Thursday, he emphasized it as the most significant bipartisan step Congress could take to shield Americans from higher electricity prices.