House Passes Bipartisan Bill to Shift Data Center Energy Costs to Providers
The U.S. House approved the Ratepayer Protection Act, requiring tech firms to cover new electricity infrastructure costs for large data centers, and sent the measure to the Senate.
The U.S. House voted 417-3 to approve the bipartisan Ratepayer Protection Act, legislation that would require large-load customers such as data centers to pay for the electricity generation needed to serve them, rather than passing those costs to residential consumers. The bill now moves to the Senate for consideration.
The measure, introduced by Rep. Gabe Evans of Colorado, aims to have state utility regulators set standards ensuring that new energy infrastructure costs are billed to the facilities that create the demand. House Speaker Mike Johnson said the act "guarantees hardworking American families won't foot the bill for the buildout of AI infrastructure."
Supporters highlighted rapid growth in data center electricity use, with the International Energy Agency projecting consumption could more than double by the end of the decade and potentially exceed 10% of U.S. power demand by 2030. GOP Rep. Brett Guthrie, chair of the Energy and Commerce Committee, said the legislation helps keep costs low while maintaining U.S. leadership in the next-generation economy.
Democratic leaders expressed mixed views. House Minority Leader Hakeem Jeffries called the bill "a step forward" but noted further action is needed. Ranking member Rep. Frank Pallone described the legislation as "imperfect" and said it addresses only a small part of the broader issue.