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Bill to curb AI data center utility costs hits snag in Senate
CNBC • • nation
Key Points:
- Senate Republicans' attempt to quickly pass the bipartisan Ratepayer Protection Act, aimed at preventing utility cost increases from data centers, was blocked by Sen. Martin Heinrich due to concerns it relied only on voluntary state and developer commitments.
- The bill, sponsored by Sen. John Husted, would allow states to require large AI data centers to cover infrastructure costs instead of passing them to consumers, but critics argue it lacks enforceable measures.
- Despite overwhelming House support (417-3), progressive Democrats and environmental groups opposed the bill, calling it insufficient to address rising utility costs linked to data center growth.
- Heinrich proposed an alternative, the GRID Savings Act of 2026, which would give federal regulators authority to require data centers consuming 150 megawatts or more to pay for grid upgrades, emphasizing stronger enforcement than the blocked bill.
- The legislation's failure to advance before the midterm elections leaves data center-related utility cost issues unresolved, with potential political implications in key states like Ohio where the issue is contentious.
