US House Advances Bill To Address Data Center Energy Costs
The U.S. House of Representatives passed the Ratepayer Protection Act, a federal bill aimed at addressing the energy costs of the expanding data center industry, particularly those supporting AI. The legislation directs state utility regulators to consider requiring large data center operators to cover the incremental costs of power infrastructure, thereby protecting consumers from increased electricity prices.
The U.S. House of Representatives overwhelmingly passed the Ratepayer Protection Act, marking the first federal legislative effort to specifically address the economic impact of the rapidly expanding data center industry. The bill, identified as HR 9340, passed with a vote of 417-3 on September 16, 2026.
This legislation focuses on the growing electricity demands of data centers, especially those supporting artificial intelligence. It directs state utility regulators to consider implementing policies that would require large data center operators to cover the additional costs associated with power generation, transmission, and other necessary infrastructure to serve their facilities.
The measure aims to mitigate concerns that the rapid expansion of data centers could strain electricity grids and lead to increased costs for households and businesses. Supporters believe the bill will help prevent consumers from bearing infrastructure expenses tied to large-scale data center development, while critics argue it doesn't go far enough, as it only directs states to consider cost-sharing rather than imposing a federal mandate.
Passed as an amendment to the Public Utility Regulatory Policies Act of 1978, the bill establishes a federal standard related to the recovery of the full incremental cost of upgrades for large load customers.