Costa touts bill to study AI data centers’ energy, water impacts
Rep. Jim Costa is advocating for the 'Unleashing Low-Cost Rural AI Act,' a bipartisan bill (H.R. 5227) that would mandate a national laboratory study on the energy, water, and utility cost impacts of AI data center growth, especially in rural areas. Costa emphasized his concern for Central Valley consumers, including those in Fresno and Tulare, regarding potential utility cost increases and impacts on water resources. The bill aims to inform policymakers on managing data center expansion without negatively affecting local communities.
Rep. Jim Costa is championing the 'Unleashing Low-Cost Rural AI Act' (H.R. 5227), a bipartisan bill introduced on September 9, 2025, that seeks to understand the broader implications of artificial intelligence data center expansion. The proposed legislation, currently at the introduced stage in the House Committee on Science, Space, and Technology, would require the Secretary of Energy to designate a national laboratory to conduct a comprehensive study.
The study would investigate the effects of AI and data center growth on U.S. energy resources, existing infrastructure, energy costs, supply reliability, land use, water use, and consumer costs. A key focus of the bill is prioritizing the impacts on rural communities. Rep. Costa specifically highlighted concerns for his constituents in California's Central Valley, mentioning Fresno and Tulare, citing projections from the California Energy Commission that data centers could increase the state's peak electricity demand from 2% to 9% by 2040. He stressed the importance of planning for this growth to prevent higher utility bills and adverse effects on water resources for local families.