Senate Democrats defeat bipartisan data center cost bill

The Senate voted 57-43 on Wednesday to block the Ratepayer Protection Act, a bill that would set a federal standard requiring developers of large data centers to reimburse state public utility commissions for the water and electricity costs passed on to ratepayers. The measure had previously cleared the House of Representatives with a 417-3 vote.

The Senate version was sponsored by Republican Sen. Jon Husted of Ohio, who is seeking a full term after being appointed to the chamber. Husted said Democrats had indicated a desire for lower electricity prices and that a vote in favor would move the bill to the president’s desk for a bipartisan outcome.

Senate Minority Leader Chuck Schumer criticized the legislation as optional for states and insufficient, calling it a “fraud” that offers only partisan messaging. He urged colleagues to consider alternative proposals from Sens. Chris Van Hollen and Martin Heinrich that would impose stricter cost-related rules on data centers.

Senate Majority Leader John Thune responded that the bill’s passage in the House demonstrated broad bipartisan support, noting that prominent House Democrats had voted for it and that it could still become law if approved by the Senate.

A recent poll indicated strong public opposition to new data center projects, with respondents significantly less likely to support candidates who favor such developments. Republican Sen. Thom Tillis, who is retiring, said Husted was correct to raise the issue but expressed doubt that the bill would achieve substantial results, suggesting that utility regulation should remain at the state and local level.