States Newsroom: Trump likes data centers. Congress seems stuck. The midterms could deliver a verdict
The House overwhelmingly passed a bill requiring states to consider making data centers pay the full cost of the electricity they use, amidst widespread public opposition to data centers. However, President Trump opposes such restrictions, and the bill's future in the Senate remains uncertain due to political divisions and upcoming elections. Data center regulation has become a significant issue in current congressional races.
The U.S. House of Representatives recently passed a bill requiring state regulators to consider mandating that data centers cover the full costs of the electricity they consume, including generation, transmission, and distribution upgrades. This legislative action comes as public opposition to data center development grows across the country, fueled by concerns over energy costs, affordability, and the demands of artificial intelligence.
However, the bill faces significant headwinds, particularly from former President Donald Trump, who publicly dismissed concerns about data centers as a "hoax" on his Truth Social platform. Senate leaders have not committed to taking up the House bill, with Sen. Richard Durbin, D-Ill., expressing pessimism due to the presidential opposition and strong community sentiment. A recent University of Massachusetts Amherst Poll indicated that 65% of Americans oppose data center construction in their local areas.
While the House bill, championed by representatives like Rob Latta, R-Ohio, and Kathy Castor, D-Fla., aims to protect ratepayers, environmental activists like Sara Chieffo of the League of Conservation Voters argue it provides only a weak directive to states. Critics, including progressives like House Minority Leader Hakeem Jeffries, D-New York, and Rep. Ro Khanna, D-Calif., are pushing for more stringent measures, such as outright bans or moratoriums on construction, and the elimination of federal tax incentives for data centers. The future of data center regulation remains a flashpoint in upcoming congressional elections, with candidates like Sen. Jon Husted, R-Ohio, navigating the divide between local concerns and national political stances.