Data centers must provide their own power and give back to the grid in newly proposed bill
U.S. Senator Adam Schiff has proposed new federal legislation, the "Energy Cost Fairness and Reliability Act," requiring data centers to provide their own power, fund grid updates, and reduce energy demand during peak times. This bill aims to prevent data centers from increasing consumer energy costs and straining existing power grids, especially in regions like Southern California that already face energy challenges. The legislation also prohibits data centers from using power plants already serving residential populations.
U.S. Senator Adam Schiff has introduced the "Energy Cost Fairness and Reliability Act," federal legislation designed to address the substantial electricity and water demands of burgeoning data centers across the United States. The proposed bill mandates that data centers generate their own power, fully fund any necessary grid upgrades for their facilities, and manage their energy consumption flexibly, including curtailing usage during peak demand and returning power to the grid. Senator Schiff states this measure would help reduce energy costs for consumers and prevent new data centers from drawing power from existing plants that serve communities.
The article highlights that the bill's introduction comes amid persistent energy issues in Southern California, particularly in the Morongo Basin, where residents experience rolling blackouts and increasing utility rates. Southern California Edison, a key utility in the region, is cited for its grid's need for upgrades and its involvement in lawsuits related to wildfires, which have contributed to recent 13% rate hikes for its customers. Senator Schiff, during a visit to the Joshua Tree area and the Joshua Basin Water District, emphasized the critical need for new power sources to counteract rising energy demands from data centers and ensure affordability for residents.
While the legislation does not impose a ban on data center construction, it focuses on regulating their energy practices. The article mentions a large 240-acre data center proposed near Coachella in Riverside County and cites a UC Riverside study projecting that data centers nationally could require up to 1,451 million gallons of water daily by 2030. The bill has been introduced to Congress and is currently awaiting passage through both the Senate and the House.