First data center bill clears House as both parties scramble for answers on affordability
The U.S. House of Representatives passed the Ratepayer Protection Act (RPA) on Wednesday evening, a bill that looks to shield local communities from higher energy electricity and grid infrastructure costs associated with data center development.
The bill, which succeeded with broad bipartisan support in a 417 to 3 vote, is likely one of the last pieces of legislation lawmakers will consider until after the Nov. 3 midterm elections. It also puts a spotlight on the data center issue, which has garnered attention as a proxy for affordability, energy and regulatory debates.
It marks the first data-center-related bill passed in the 119th Congress.
In its current form, the bill does not seek to ban data centers, set limitations on their expansion or really even set regulatory guidelines for them. Instead, it amends existing energy law, the Public Utility Regulatory Policies Act (PURPA), so states must consider a federal standard: large data centers that consume 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 to prevent local communities from being left holding the bill.
Its sponsor, Rep. Gabe Evans, R-Colo., framed it as a needed step towards keeping 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," Evans 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. The Ratepayer Protection Act is a bipartisan, commonsense solution that protects everyday Americans and ensures our nation can continue to win the AI race," Evans added.
The bill’s Democratic co-sponsor, Rep. Kathy Castor, D-Fla., echoed Evans’ thinking.
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"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," Castor said.
In recent months, candidates across both sides of the aisle have carefully framed their thinking around data centers. Democrats, in particular, have linked the issue to affordability.
Such is the case for Roy Cooper, former governor of North Carolina, who is now waging a bid for the seat of retiring Sen. Thom Tillis, R-N.C.
Cooper, once having celebrated data center expansion as an avenue for job growth in the Tar Heel State, has since qualified his support.
"Roy believes local communities must have the final say on new projects coming to their area, which includes local moratoriums, and data centers must pay for all of the energy they use without passing on any of their costs to consumers," a spokesperson for Cooper’s campaign said in a statement to Fox News Digital earlier this month.
Republicans have also navigated the political noise around data centers with care.
Cooper’s opponent, former Republican National Committee chairman Michael Whatley, also stressed letting local communities decide for themselves about whether data center expansion is right for them.
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"Michael Whatley's standard is simple: data centers pay their own way, families pay nothing and communities decide. 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. It means no special subsidies and no sweetheart deals cut over the heads of taxpayers," Whatley’s campaign said.
Having cleared the House, the data center bill passed on Wednesday heads to the Senate for consideration, where its fate is uncertain.