These States Are Already Making AI Data Centers Pay for Their Power
States are making AI data centers pay more of their own power costs as Congress considers a national ratepayer protection bill.
States across the U.S. are grappling with the rising electricity demands of AI data centers, prompting debates over who should bear the cost of the infrastructure needed to power these facilities. The House recently passed the bipartisan Ratepayer Protection Act, which aims to prevent households and small businesses from bearing the financial burden of infrastructure upgrades for large electricity users, like data centers.
Michele Nellenbach, vice president of federal affairs at the Data Center Coalition, supports the bill's intent while seeking collaboration to address the concerns of all stakeholders.
The Ratepayer Protection Act, introduced by Rep. Gabe Evans (R-CO) and Rep. Kathy Castor (D-FL), targets businesses and organizations using 100 megawatts or more of electricity—enough to power tens of thousands of homes. The bill would require these large electricity users to pay for any necessary new power plants, transmission lines, or grid upgrades before the work begins. State utility regulators would review the new standard before it becomes law, maintaining the final decision in the hands of individual states.
The bill's proponents emphasize the need to avoid a situation where utilities attempt to recoup costs from broader customer bases through higher electricity rates. Florida has already enacted a statewide protection law for very large electricity users, requiring utility tariffs to ensure each customer bears the full cost of service and not shift expenses to others. Oregon's 2025 POWER Act aims to help the Oregon Public Utility Commission manage the costs and risks associated with data center expansion.
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