Rep. Tonko Introduces Bill to Curb Data Center Energy Costs

Congressman Paul Tonko, representing New York's 20th Congressional District, has introduced the "Power for the People Act" in the U.S. House of Representatives on Tuesday, April 7. The legislation seeks to address the escalating energy costs driven by rapidly expanding data centers and protect consumers from bearing these expenses. A companion bill has been introduced in the Senate by Senator Chris Van Hollen. According to Tonko's office, data centers contribute 55% of new energy demand in the U.S. and are projected to account for 15% of national electricity consumption by 2030, straining the electric grid. The proposed act mandates that the Federal Energy Regulatory Commission (FERC) ensure data centers fund local transmission upgrades and requires electric grid operators to establish a data center load queue. The bill further incentivizes data centers that utilize their own power generation and battery storage, mitigate pollution, and generate jobs, while also supporting improved load forecasting. It has gained bipartisan support with co-sponsors including Representatives Kathy Castor, Steve Cohen, and Maxine Dexter, and Senators Angela Alsobrooks, Richard Blumenthal, and Cory Booker. Advocacy groups such as the Natural Resources Defense Council (NRDC), the Sierra Club, and the Consumer Federation of America have also voiced their support for the legislation.