Schiff Proposes Bill Requiring Data Centers to Pay for Own Power
Senator Adam Schiff (D-Calif.) has proposed the Energy Cost Fairness and Reliability Act, a federal bill aiming to require large data centers to secure their own power. This initiative is designed to reduce energy costs for consumers and ensure data centers pay for their required grid upgrades. The bill also directs FERC to update rules for transmission lines to allow data centers to reduce demand during peak hours.
Senator Adam Schiff (D-Calif.) has introduced the Energy Cost Fairness and Reliability Act, a proposed federal bill designed to address rising energy costs and the significant power demands of artificial intelligence data centers. The bill mandates that data centers exceeding 50 megawatts (MW) must acquire their own power sources and bear the costs of any necessary grid upgrades, preventing them from drawing power from existing public utility plants.
This legislative effort follows previous pledges made by large technology companies to President Donald Trump in March, where they committed to securing their own electricity for data centers and funding grid improvements. Schiff's office stated that the bill aims to codify these pledges into law. While the proposal currently lacks GOP co-sponsors, discussions are underway to gather broader support. Schiff emphasized that while AI's growth is crucial for national leadership, it should not burden consumers or society with increased energy expenses.
Beyond mandating self-procurement of power and payment for grid upgrades, the bill also instructs the Federal Energy Regulatory Commission (FERC) to update its regulations concerning electricity transmission lines. These updates would enable data centers to decrease demand during periods of peak energy consumption. Energy affordability is emerging as a key issue in the upcoming November midterm elections, with Democrats highlighting soaring energy bills in their campaign messaging.