House Passes Bill Requiring AI Data Centers to Cover Energy Costs

The House of Representatives overwhelmingly approved a bill Wednesday aimed at ensuring that artificial intelligence data centers bear the full cost of their substantial energy demands. The legislation passed by a vote of 417-3.

The bill requires state utility regulators to consider a standard by which utilities would charge data centers for the complete cost of new power and transmission upgrades necessitated by their operations. Supporters of the bill characterized it as a "modest first start" toward shielding families and businesses from increased utility bills, while maintaining state authority over electricity markets.

"I promise that this bill is not the end of our focus on these issues. It's only the beginning,” said Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee.

Despite the bill's passage, some lawmakers advocate for a complete moratorium on AI data centers until safeguards are established to ensure AI safety and effectiveness, and to prevent further increases in utility prices or environmental harm. More than 100 Democrats signed a letter urging House Speaker Mike Johnson to keep the House in session to advance meaningful artificial intelligence safeguards.

House Speaker Mike Johnson stated that the bill "strikes the right balance of protecting local communities while keeping America on the cutting edge of AI development.”

Debate surrounding the bill highlighted differing perspectives on the economic benefits of data centers. House Majority Leader Steve Scalise, R-La., noted that a data center development in his home state generated significant bonuses for local teachers due to increased tax collections.

"Those are the stories you're seeing in communities that have embraced it,” Scalise said.

However, Pallone argued that Americans have legitimate concerns about the impact of data centers, asserting that President Donald Trump and Republican congressional leaders have disregarded these worries. Pallone referenced a social media post by Trump suggesting that communities opposing data centers risk becoming "backwards and poor."

"The president in my opinion is out of touch on this issue and the American people are demanding action,” Pallone said.

Recent polling indicates widespread public concern regarding data centers. According to a poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago, nearly two-thirds of Americans are extremely or very concerned about the impact of data centers on energy prices, and 57% share similar concerns about their effect on water supplies.

Rep. Gabe Evans, R-Colo., the bill's sponsor, expressed that the U.S. must either expand its power systems to meet growing demand or risk becoming reliant on countries like China for its digital infrastructure.

"We cannot accelerate this growth on the back of Americans working hard to pay their electric bills at the end of the month,” Evans said.