House passes bill aimed at addressing impact of data centers on energy costs - ABC News
The U.S. House overwhelmingly approved a bill aimed at making AI data centers pay for their substantial energy and infrastructure upgrade costs. The legislation, sponsored by Rep. Gabe Evans of Colorado, requires state utility regulators to consider a standard for charging data centers, intending to protect consumers from higher utility bills. It's considered a "modest first start" to address growing concerns about data centers' impact on energy prices and the environment.
The U.S. House of Representatives has approved a bill requiring state utility regulators to consider a standard that mandates artificial intelligence data centers pay the full cost of new power and transmission upgrades needed to serve them. The bipartisan legislation passed by a vote of 417-3 on Wednesday, with supporters, including Rep. Frank Pallone, ranking Democrat on the House Energy and Commerce Committee, describing it as a "modest first start" to protect families and businesses from rising utility bills.
Rep. Gabe Evans, R-Colo., sponsored the bill, which maintains state power over electricity markets while providing a federal recommendation. The debate highlighted differing views, with House Majority Leader Steve Scalise, R-La., citing economic benefits like tax collections and teacher bonuses from data center development in Richland Parish. Conversely, Pallone criticized President Donald Trump and Republican leaders for dismissing public concerns about data centers' impact on utility prices and the environment. A recent AP-NORC poll indicated that nearly two-thirds of Americans are highly concerned about data centers' effect on energy prices, and 57% are worried about water supplies.
Some lawmakers advocate for a full moratorium on AI data centers until safeguards are established to ensure safety, effectiveness, and prevention of utility price increases or environmental harm. Over 100 Democrats also urged House Speaker Mike Johnson to advance comprehensive AI safeguards. Speaker Johnson stated the passed bill "strikes the right balance of protecting local communities while keeping America on the cutting edge of AI development."