The House passed a bill on Tuesday addressing the rising electricity costs tied to data centers. The measure targets the energy burden these facilities place on local power grids. It now moves to the Senate for consideration.
Data centers consume vast amounts of electricity to power servers and cooling systems. Their growing presence has driven up energy demand in many regions. Utilities and ratepayers often absorb the resulting infrastructure costs.
The bill directs state regulators to consider rules requiring data centers to cover higher energy costs. It stops short of compelling regulators to adopt such rules. States would retain full authority over their own utility policies.
Supporters argue the legislation ensures fair cost allocation. They say data centers should bear the financial weight of their heavy energy use. Ratepayers should not subsidize an industry worth billions.
Critics contend the bill lacks enforcement teeth. Without mandatory requirements, they say, states may ignore the guidance entirely. The measure could amount to little more than a suggestion.
The data center industry has expanded rapidly across the country. Tech giants and cloud providers operate massive facilities in Virginia, Texas, and Oregon. Local opposition has grown as electricity bills climb.
The bill reflects broader concerns about infrastructure strain. Power grids face mounting pressure from artificial intelligence and cloud computing. Policymakers are searching for ways to balance growth with affordability.
