Schiff enters data center fray with ratepayer protection bill
California Sen. Adam Schiff has introduced the "Energy Cost Fairness and Reliability Act" to ensure AI and data center developers bear the full cost of their energy demand rather than ratepayers. This legislation aims to mitigate the electricity price impacts of energy-hungry data centers, a growing concern among lawmakers.
California Democratic Sen. Adam Schiff has introduced the "Energy Cost Fairness and Reliability Act," a legislative proposal aimed at addressing the significant energy consumption of data centers, particularly those supporting artificial intelligence. The bill seeks to mandate that data center and AI developers cover the full cost of new power and transmission infrastructure, preventing these expenses from being passed on to consumers.
According to Schiff, while AI's growth is crucial, it should not burden Americans' finances, necessitating "guardrails" for consumer protection. This legislation joins a growing number of bipartisan proposals focused on mitigating electricity price impacts from data centers. The Data Center Coalition, however, released a report suggesting data centers are not to blame for electricity rate increases, offering a contrasting perspective on the issue.