Congress moves to shield consumers from AI data center power bills
The U.S. House of Representatives passed a bipartisan bill requiring state utility regulators to consider a standard for AI data centers to cover more energy infrastructure costs. This aims to protect consumers from rising utility bills, although some lawmakers are calling for a full moratorium on AI data centers due to concerns about their impact on utility prices and the environment. The bill provides a federal recommendation while preserving state power in electricity markets.
The U.S. House of Representatives overwhelmingly approved a bipartisan bill on Wednesday aimed at addressing the substantial energy demands of artificial intelligence (AI) data centers. The legislation, which passed 417-3, mandates that state utility regulators consider a standard requiring data centers to pay the full cost of new power and transmission upgrades necessitated by their operations.
Supporters, including Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee, characterized the bill as a "modest first start" to protect consumers from escalating utility bills. The measure provides a federal recommendation while upholding states' authority to regulate their electricity markets. Despite the bill's passage, some lawmakers advocate for a complete moratorium on AI data centers until robust safeguards are established to ensure AI safety, prevent utility price increases, and mitigate environmental harm. Over 100 Democrats also signed a letter urging House Speaker Mike Johnson to remain in session to advance AI safeguards.
Speaker Mike Johnson stated the bill effectively balances protecting local communities with fostering AI development. However, the debate revealed divergent views: House Majority Leader Steve Scalise, R-La., cited economic benefits from data centers, such as increased tax collections in Richland Parish, Louisiana, leading to teacher bonuses. Conversely, Rep. Pallone highlighted public concerns about data centers' impact, criticizing former President Donald Trump's perceived dismissal of these worries.
A recent poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago indicated that nearly two-thirds of Americans are highly concerned about data centers' effect on energy prices, and 57% are concerned about water supplies. Rep. Gabe Evans, R-Colo., the bill's sponsor, emphasized the need to build out U.S. power systems to meet demand without burdening everyday Americans with higher electric bills.