WASHINGTON – The House overwhelmingly approved a bill Wednesday that aims to have artificial intelligence data centers pay for their substantial energy needs as lawmakers used what was expected to be their final day in Washington before the midterm elections to address a growing voter concern.
The legislation would require state utility regulators to consider a standard by which utilities charge data centers for the full cost of the new power and transmission upgrades needed to serve them. The bill passed by a vote of 417-3, demonstrating bipartisan support for the initiative.
Supporters of the bill described it as a “modest first start” in protecting families and businesses from higher utility bills. It essentially provides a federal recommendation while preserving state power to regulate electricity markets. Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee, emphasized, “I promise that this bill is not the end of our focus on these issues. It’s only the beginning.”
As discussions around the bill unfolded, some lawmakers began advocating for a full moratorium on AI data centers until necessary safeguards are established. They argue these safeguards are critical to ensuring AI technologies are safe, effective, and do not exacerbate utility costs or environmental degradation. In a show of solidarity, over 100 Democrats signed a letter this week urging House Speaker Mike Johnson to keep the House in session until meaningful artificial intelligence safeguards are advanced.
Johnson responded to the debate by asserting that the bill strikes the appropriate balance between protecting local communities and maintaining the U.S. at the forefront of AI development. House Majority Leader Steve Scalise (R-La.) highlighted positive local impacts, citing a data center in Richland Parish that resulted in significant bonuses for teachers due to increased tax revenues. “Those are the stories you’re seeing in communities that have embraced it,” Scalise stated.
Conversely, Pallone expressed that many Americans harbor legitimate concerns regarding the implications of data centers on their communities. He criticized former President Donald Trump and Republican leaders for dismissing these concerns, pointing out Trump’s comments suggesting that communities opposing data centers risk falling “backwards and poor.” Pallone argued, “The president in my opinion is out of touch on this issue and the American people are demanding action.”
Polling data from The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago indicates that nearly two-thirds of Americans are extremely or very concerned about the impact of data centers on energy prices. Furthermore, 57% expressed significant concerns regarding the effects on water supplies.
Rep. Gabe Evans (R-Colo.), the bill’s sponsor, underscored the urgency of addressing data center growth. He asserted, “We cannot accelerate this growth on the back of Americans working hard to pay their electric bills at the end of the month,” reinforcing the necessity of building out power systems to meet rising demand without compromising the financial well-being of American families.
