Multiple US senators are pushing competing legislation aimed at regulating data centers' energy consumption and grid impact. Bills range from mandating independent power sources to incentivizing grid upgrades and preventing cost pass-throughs to consumers.
The competing legislative efforts underscore a growing concern among policymakers about the significant and increasing energy demands of data centers, potentially leading to new regulations that could impact the cost and availability of power for these facilities and the broader energy grid.
US senators are advancing a series of competing bills aimed at regulating the energy consumption and grid impact of data centers, highlighting a growing legislative focus on the sector's power demands. Senators Richard Blumenthal (D-Conn.) and Josh Hawley (R-Mo.) have introduced a bill that takes a stringent approach, mandating that new data centers utilize power sources independent of the existing electric grid and requiring existing facilities to transition to such sources within a decade. This contrasts with other proposals, such as Sen. Martin Heinrich's (D-N.M.) GRID Savings Act, which would direct the Federal Energy Regulatory Commission (FERC) to establish rules for large electricity customers to contribute to grid upgrades upon connection, while also offering incentives for hyperscalers to voluntarily fund transmission system enhancements. Sen. Tom Cotton (R-Ark.) is backing the Decentralized Access to Technology Alternatives (DATA) Act, which would provide exemptions from power regulations for data centers that develop their own unconnected power and transmission infrastructure. Additionally, Sen. Chris Van Hollen (D-Md.) is promoting the Power for the People Act, designed to prevent the costs associated with data centers from being passed on to residential consumers and small businesses. Sen. John Hickenlooper (D-Colo.) suggested that any data center legislation moving through the Senate this year would need to be apolitical, implying that aggressive stances could face hurdles.