Tonko introduces bill to make data centers pay for grid upgrades

U.S. Representative Paul D. Tonko (D-N.Y.) and Senator Chris Van Hollen (D-Md.) have introduced the "Power for the People Act" in the House and Senate, respectively. This legislation seeks to address the growing strain on the electric grid caused by the rapid expansion of data centers, particularly those fueling artificial intelligence and other computing demands. Tonko's office highlighted that data centers are critical for national security and economic growth but are responsible for a significant portion of new energy demand in the U.S., with reports indicating 55% of new demand comes solely from them. Forecasts suggest data centers could account for 15% of national electricity consumption by 2030, potentially leading to higher electricity bills for consumers without proper safeguards. The proposed bill mandates the Federal Energy Regulatory Commission (FERC) to establish rules requiring data centers to pay for necessary local transmission upgrades. Additionally, FERC would be directed to create a data center load queue for electric grid operators. The legislation aims to prioritize data centers that integrate their own power generation and battery storage, mitigate pollution, and create jobs, while also supporting improved forecasting of data center load.