Ohio Democratic Congressman Introduces Bill Requiring Data Centers to Pay for Energy Grid Impact

Ohio Democratic U.S. Rep. Greg Landsman has filed national legislation, dubbed the "No Harm Data Center Act," aiming to ensure data centers bear the full financial burden of their impact on the power grid and associated infrastructure costs. The proposed bill mandates that data center operators cover expenses for new energy infrastructure, prohibits elected officials from entering into nondisclosure agreements (NDAs) with these companies, and requires studies into the environmental effects of data centers. Landsman's initiative comes as Ohio lawmakers are pursuing similar state-level changes, though he asserts a federal framework is essential due to the national scope of data center expansion and perceived inaction at the state level. He contrasts his stance with former President Trump's past focus on "ratepayer protection pledges" from tech companies, arguing that mere promises are insufficient and robust regulation is needed. A key provision of the "No Harm Data Center Act" would grant the Federal Energy Regulatory Commission (FERC) comprehensive authority over electric ratemaking for data centers pulling more than 50 megawatts. This would include charging facilities for the full costs of constructing, upgrading, and expanding the power grid, as well as for new power generation to meet increased demand. Ohio Consumers' Counsel Maureen Willis praised the cost-shift prohibition as a "core-consumer protection principle," but expressed reservations about FERC displacing the Public Utilities Commission of Ohio (PUCO), which currently handles state-level distribution rates and has already approved a data center-specific tariff for AEP Ohio. Landsman maintains that the expanded federal role is necessary for "real change" and to protect communities from additional costs, noise, pollution, and the lack of transparency due to NDAs, which he claims bypass Ohio 's sunshine laws. He emphasizes that local communities should not have to face these challenges alone without strong state and federal leadership.