Data center bill falls short in Senate as lawmakers take final votes before midterms
The U.S. Senate rejected a bill that would have directed utility regulators to consider requiring large electricity customers, including data centers, to cover grid-upgrade costs. The measure failed 57-43 after Democrats argued it was too weak and Republicans said it addressed voters’ concerns about rising energy bills.
The Senate voted 57-43 against advancing legislation sponsored by Sen. Jon Husted, R-Ohio, that sought to address concerns about data centers’ effects on electricity costs. The bill would have encouraged utility regulators to consider a federal standard requiring large power customers to pay rates covering system upgrades needed to serve them. It had passed the House 417-3 but fell short of the 60 votes needed in the Senate.
Senate Democrats, led by Chuck Schumer, criticized the measure as insufficient and backed a proposal from Sen. Martin Heinrich, D-N.M., that would require the Federal Energy Regulatory Commission to establish mandatory rules for large electricity customers. Husted and other Republicans said the failed bill would have made data centers more accountable for grid costs, while Democrats said its optional approach would not meaningfully protect consumers. The issue has gained political attention as data center growth fuels concerns about electricity prices and water use, particularly in Ohio, where Husted is facing a competitive reelection campaign.