New Mexico Democrat blocks bipartisan bill aimed toward protecting taxpayers from data center costs
A bipartisan bill, the Ratepayer Protection Act, aimed at making data centers pay for grid upgrades and energy costs, was blocked in the Senate. Sen. Martin Heinrich of New Mexico thwarted the fast-track effort, arguing the bill didn't go far enough to protect taxpayers. This legislative setback comes amid competitive midterm election campaigns.
A bipartisan bill designed to prevent taxpayers from bearing the costs associated with large data centers was blocked in the Senate, jeopardizing a legislative win for both parties ahead of the midterm elections. The proposal, which had overwhelmingly passed the House, faced a procedural block after Republicans sought to fast-track its approval.
Senator Jon Husted (R-Ohio) attempted to pass the bill by unanimous consent to address criticisms in his reelection campaign regarding data center costs. However, Senator Martin Heinrich (D-New Mexico) intervened, stating the "Ratepayer Protection Act" was insufficient to tackle the escalating costs of AI data center development. Heinrich argued that the bill only suggested, rather than required, data centers to cover the full cost of energy consumption and grid strain, particularly for facilities using 100 megawatts or more.
Heinrich, in turn, sought unanimous consent for his own bill, which would mandate the Federal Energy Regulatory Commission to establish rules for data centers using 150 megawatts or more to pay for specific grid upgrades. This effort was subsequently blocked by Senator Bernie Moreno (R-Ohio), who accused Heinrich of political motives aimed at hurting Husted's reelection chances. The future of the bill remains uncertain, likely to be postponed until after the midterm elections.