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House Passes Bill Targeting Data Center Electricity Costs

The House passed a bill on Tuesday addressing the electricity costs linked to data centers. The measure directs state regulators to review rules that would make data centers pay for higher energy use. It does not force regulators to adopt those rules.

Data centers power artificial intelligence systems and consume large amounts of electricity. Their growing demand has raised concerns about strain on the power grid. Those costs often fall on ordinary ratepayers.

The bill asks state utility commissions to consider new rate structures. Under these structures, data centers would cover the added cost of their heavy energy use. Regulators would keep the final say on any changes.

Supporters say the bill brings attention to a growing financial burden. They argue that tech companies should pay their fair share for grid upgrades. The approach leaves flexibility for states with different energy markets.

Critics contend the measure lacks teeth because it is not mandatory. They say voluntary guidance may not lead to real change. Some worry that data centers could still pass costs to consumers.

The bill now moves to the Senate, where its future is uncertain. Similar proposals have stalled in previous sessions. Lawmakers from both parties have shown interest in the issue.

Energy experts note that data center demand is rising fast. Utilities across the country are planning new infrastructure to keep up. How those costs are shared remains a central debate.

The legislation reflects broader questions about who pays for the digital economy’s physical footprint. States would need to act for any rules to take effect. Without action, current cost patterns would likely continue.

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