Senate Vote on Data Center Power Bill Stalls After Democratic Objection

A bipartisan bill aimed at making large technology companies contribute to the costs of electricity grid infrastructure upgrades for AI data centers was blocked in the Senate on Thursday. Sen. Martin Heinrich (D-NM) objected to an effort by Sen. Jon Husted (R-Ohio) to fast-track the Ratepayer Protection Act.

The House of Representatives had overwhelmingly approved the measure with a vote of 417-3. The bill seeks to establish standards for states to prevent major electricity consumers from passing the expenses of grid expansion onto ordinary utility customers.

Heinrich stated that the Ratepayer Protection Act did not sufficiently address the issue. "AI data centers can mean higher costs for American families, and in a lot of places they already do," Heinrich said. "But the Ratepayer Protection Act falls short of what we need to do to respond."

Instead, Heinrich proposed his own GRID Savings Act, which would mandate that large electricity users, such as data centers, pay for the facilities needed to connect them to the power grid and establish federal standards for such interconnections. However, Sen. Bernie Moreno (R-Ohio) objected to Heinrich's proposal, accusing the Democrat of hindering immediate relief for Americans and contributing to the perception of a "do-nothing Congress."

The disagreement arises as data centers and their energy demands become a significant political issue ahead of the November midterm elections. Husted, facing a competitive re-election race, has been criticized over his record on data centers. A memo from the National Republican Senatorial Committee highlighted data centers as a key vulnerability for Husted, suggesting that voters favor Republican candidates who advocate for local approval of data center construction and require them to cover their utility costs.

Husted defended the blocked Ratepayer Protection Act, calling it "the most meaningful, bipartisan step Congress could take to protect the American people from higher prices for electricity." He expressed disappointment that the opportunity was missed.

The Senate is slated to remain in session for the rest of the month before adjourning for a recess that will extend past the midterm elections.