Key facts
- The U.S. House of Representatives passed the Ratepayer Protection Act, a bipartisan bill to manage electricity cost increases from data centers.
- The legislation requires state utility regulators to consider if large electricity users should bear incremental power infrastructure costs.
- Representatives Kathy Castor and Gabe Evans introduced the bill.
- House Democratic Leader Hakeem Jeffries supported the bill.
- Former FERC member Allison Clements described the bill as a 'modest step in the right direction.'
The U.S. House of Representatives passed the Ratepayer Protection Act, a bipartisan bill aimed at protecting households from electricity cost increases tied to the expansion of data centers. The legislation, introduced by Representatives Kathy Castor (D-FL) and Gabe Evans (R-CO), requires state utility regulators to consider whether large electricity users, including data centers, should bear the incremental costs of power infrastructure built to serve them.
The vote highlights the complex political landscape surrounding the growth of U.S. data centers. While President Donald Trump supports data center development as crucial for artificial intelligence leadership, lawmakers from both parties are facing constituent concerns over rising electricity costs due to the industry's surging power demand. A poll by the University of Massachusetts Amherst indicated that only 11% of Americans would support the construction of an AI data center in their community.
House Majority Leader Steve Scalise supported the measure, stating, “As we’re advancing in technology, we’ve got to do it the right way. Let locals make the choice, and let consumers reap the benefits.” Energy and Commerce Chair Brett Guthrie (R-Ky.) argued that the bill aligned with White House objectives. House Democratic Leader Hakeem Jeffries endorsed the bill as an "appropriate step forward," while former Federal Energy Regulatory Commission member Allison Clements called it a "modest step in the right direction." Energy and Commerce ranking member Frank Pallone (D-N.J.) noted during floor debate that "this bill is not the end of our focus on these issues; it’s only the beginning." Environmental group Food & Water Watch criticized the legislation for not addressing broader environmental concerns related to data centers.