House passes Gabe Evans’ bill aimed at addressing impact of data centers on energy costs
The U.S. House overwhelmingly passed a bill requiring state utility regulators to consider a standard for charging data centers the full cost of energy infrastructure upgrades. This aims to protect consumers from higher utility bills, though some lawmakers advocated for a full moratorium on AI data centers. The legislation provides a federal recommendation while preserving state power to regulate electricity markets.
The U.S. House of Representatives overwhelmingly approved a bill sponsored by Rep. Gabe Evans on Wednesday, addressing the significant energy demands of artificial intelligence data centers. The legislation mandates state utility regulators to consider a standard requiring data centers to cover the full cost of new power and transmission infrastructure upgrades necessitated by their operations. Passing with a 417-3 vote, supporters, including Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee, characterized the bill as an initial step to shield families and businesses from escalating utility bills.
House Speaker Mike Johnson affirmed the bill's balance in protecting local communities and fostering AI development, despite the legislation providing only a federal recommendation while preserving state authority over electricity markets. However, the debate also highlighted calls from some lawmakers for a complete moratorium on AI data centers until comprehensive safeguards are established concerning safety, utility price hikes, and environmental impact. House Majority Leader Steve Scalise cited economic benefits, such as increased tax revenues leading to teacher bonuses in Richland Parish, Louisiana, as examples of positive community impacts, while Rep. Pallone raised concerns from Americans about data center implications, contrasting with former President Donald Trump's past dismissive remarks about communities opposing such developments.