Key facts
- Legislation to address data center energy consumption has been introduced in the U.S. Congress.
- The Ratepayer Protection Act, designed to shield ratepayers from increased energy costs due to data centers, passed the House by voice vote.
- Additional bills to improve load forecasting and promote grid-enhancing technologies for data centers also passed the House.
- Senate action on data center legislation is uncertain, with the Senate Energy and Natural Resources Committee chair not prioritizing it.
- A recent FERC decision tasking grid operators with addressing data center energy demand may influence congressional action.
Legislation aimed at managing the significant energy demands of data centers has advanced in the House of Representatives but faces an uncertain path in the Senate. Representative Alexandria Ocasio-Cortez (D-N.Y.) formally introduced a bill seeking a national moratorium on data center construction, a move supported by Senator Bernie Sanders (I-Vt.).
The Ratepayer Protection Act, which seeks to align with President Donald Trump's pledge to protect consumers from increased energy costs associated with data centers, passed the House by voice vote. Lawmakers also reached consensus on two other related bills: the Load Forecasting Enhancement Act (H.R. 9332) and the Affordable Innovation for the Grid Act (H.R. 9339). These bills are designed to improve load forecasting for future data centers and promote grid-enhancing technologies.
However, the Senate's engagement with data center legislation remains tentative. Senator Mike Lee (R-Utah), Chair of the Senate Energy and Natural Resources Committee, stated that such legislation is not currently a priority for his committee. He indicated a willingness to review the Ratepayer Protection Act, which still requires approval from the full House Energy and Commerce Committee before proceeding further.
Senator Kevin Cramer (R-N.D.) suggested that recent actions by the Federal Energy Regulatory Commission (FERC) might provide a temporary pause for Congress. FERC has directed regional grid operators to develop plans to manage the escalating energy demand from data centers, a move Cramer believes offers a "breather" for legislative bodies.