US House Passes Bill to Make AI Data Centers Pay Full Energy Costs

The US House of Representatives overwhelmingly approved a bill on Wednesday that aims to make artificial intelligence data centers bear the full cost of their substantial energy needs. The legislation passed by a vote of 417-3, as lawmakers used what was expected to be their final day in Washington before the midterm elections to address a growing voter concern.

The bill would require state utility regulators to consider a standard under which utilities charge data centers for the complete cost of new power generation and transmission upgrades needed to serve them. State public utility commissions retain broad flexibility to adopt or reject federal standards when setting rates.

Supporters described the measure as a "modest first start" in shielding families and businesses from higher utility bills. "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.

The debate reflected differing views on the merits of data centers. House Majority Leader Steve Scalise, R-La., said a data center project in Richland Parish in his home state generated bonuses of up to $50,000 for local teachers through increased tax collections. "Those are the stories you're seeing in communities that have embraced it," Scalise said.

Pallone countered that Americans have real concerns about what data centers will mean for them, adding that President Donald Trump and Republican congressional leaders have pushed those concerns aside. He noted that Trump posted on social media that communities opposed to data centers must want to end up being "backwards and poor." "The president in my opinion is out of touch on this issue and the American people are demanding action," Pallone said.

Nearly two-thirds of Americans are extremely or very concerned about data centers' impact on energy prices, and 57% are extremely or very concerned about the impact on water supplies, according to a new poll from the Varta Wire-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago.

Rep. Gabe Evans, R-Colo., the bill's sponsor, said the US can either build out its power systems to meet demand or become dependent 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.

Some lawmakers are calling for a full moratorium on AI data centers until safeguards are in place to ensure AI is safe and effective and that the data centers do not increase utility prices or harm the environment. More than 100 Democrats signed onto a letter this week urging House Speaker Mike Johnson to keep the House in session this month until Congress advances meaningful artificial intelligence safeguards.