The U.S. House of Representatives passed the first data center-related bill of the 119th Congress on Wednesday, approving the Ratepayer Protection Act in a 417-3 vote that underscored how squarely the issue of energy affordability has landed on both parties' agendas.
The bill, sponsored by Rep. Gabe Evans, R-Colo., and co-sponsored by Rep. Kathy Castor, D-Fla., amends the Public Utility Regulatory Policies Act so that states must consider a federal standard: large data centers consuming 100 megawatts or more would pay the full extra cost of the generation, transmission and distribution upgrades built to serve them. Companies would also be required to make financial assurances in the event a project is canceled or moved, preventing communities from being left to cover the bill.
In its current form, the legislation does not ban data centers, cap their expansion or set regulatory guidelines for them. Instead, it targets who pays for the grid infrastructure that the facilities require — a question that has become a proxy for broader debates over affordability, energy and regulation as artificial intelligence drives a surge in power demand.
Evans framed the measure as a necessary step to keep data center energy costs from spilling over to local communities. «As America races to lead the world in AI, we must build the energy infrastructure needed to support this innovation and stay ahead of competitors like communist China,» he said in a statement earlier this year. «But Colorado families, farmers and small businesses should not be forced to cover the costs of new power generation driven by these developments.»
Castor echoed that thinking, pointing to the pressure her constituents face. «My neighbors across Florida are grappling with skyrocketing electric bills. Ratepayers should not have to subsidize wealthy corporations' growing energy demands, especially from AI data centers,» she said.
The vote arrives as candidates in both parties carefully calibrate their positions on data centers. Democrats have increasingly linked the issue to affordability. In North Carolina, former Gov. Roy Cooper — now running for the seat of retiring Sen. Thom Tillis — once celebrated data center expansion as a source of job growth but has since qualified his support. A spokesperson for his campaign said Cooper believes local communities must have the final say on new projects coming to their area, including local moratoriums, and that data centers must pay for all the energy they use without passing costs to consumers.
Republicans have navigated the same political terrain with care. Cooper's opponent, former Republican National Committee Chairman Michael Whatley, stressed that communities should decide for themselves whether data center expansion is right for them. «Michael Whatley's standard is simple: Data centers pay their own way, families pay nothing and communities decide,» his campaign said. «That means Big Tech builds or buys every megawatt it needs and covers every dime of the grid upgrades to deliver it, with zero costs shifted onto residential ratepayers.»
The bill's broad bipartisan support in the House — only three members voted against it — reflects how difficult it has become to oppose a measure framed as protecting ratepayers. But the legislation now heads to the Senate, where its fate is uncertain. The House vote is likely to be one of the last pieces of legislation lawmakers consider before the Nov. 3 midterm elections, giving the Senate a narrow window to act.
For now, the Ratepayer Protection Act puts a spotlight on a question that is likely to persist well beyond the current Congress: as AI companies race to build ever-larger computing facilities, who should bear the cost of the power infrastructure they require? The bill's answer — that the data centers themselves should pay — has drawn support from both parties, but its path through the Senate remains unclear.