House to vote on bill to rein in AI data center utility costs
The US House is set to vote on the bipartisan Ratepayer Protection Act, a bill aiming to prevent AI data centers from passing new power infrastructure costs to consumers. If passed, it would allow state regulators to require data centers over 100 MW to cover these expenses. While expected to gain bipartisan support, some environmental groups believe the measure does not go far enough.
The U.S. House of Representatives is poised for a vote on the Ratepayer Protection Act, a bipartisan bill designed to address rising utility costs linked to large AI data centers. Sponsored by Representatives Gabe Evans (R-Colorado) and Kathy Castor (D-Florida), the legislation aims to establish a framework allowing state regulators to mandate that AI data centers with demands of 100 megawatts or more bear the costs of new power sources and transmission lines, rather than passing these expenses to consumers. The bill, which House Speaker Mike Johnson is expected to bring to the floor under suspension of the rules, requires a two-thirds vote and anticipates broad, bipartisan support.
The initiative comes amidst growing public backlash against the proliferation of data centers and concerns over their energy consumption, a topic gaining traction ahead of the 2026 midterm elections. While proponents like Rep. Evans emphasize the commonsense principle of those creating demand paying for it, some environmental organizations, including the League of Conservation Voters and Food & Water Watch, argue the bill's voluntary nature for states renders it insufficient. Sara Chieffo of LCV suggests states might ignore the directive, while Mitch Jones of Food & Water Watch contends it could paradoxically accelerate data center construction and offers questionable means for companies to claim self-payment for power, advocating for a complete pause on new AI data centers.
House Minority Leader Hakeem Jeffries (D-New York) supports the bill as a "step forward" but acknowledges more needs to be done. He also called for broader congressional action on AI, citing recent concerns raised by a former Anthropic employee. Separately, Senator John Kennedy (R-Louisiana) plans to introduce an AI "kill switch" bill, though overall congressional action on AI this week appears limited. White House National Economic Council Director Kevin Hassett and Speaker Johnson maintain that tech companies, not Congress, should be responsible for ensuring AI product safety.