Senate defeats GOP-led data-center cost bill amid pre-midterm debate
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The Senate voted 57-43 to reject the bipartisan Ratepayer Protection Act, a proposal that would have asked states to consider requiring data-center operators to cover grid costs, a move seen as a setback for Republicans seeking to address rising electricity prices before the midterms.
The Senate rejected the Ratepayer Protection Act on a 57-43 vote on Wednesday, halting a measure that would have asked state regulators to consider a federal standard requiring data-center operators to pay for the electricity they consume. Only four Democrats joined Republicans in supporting the bill, which had previously passed the House with bipartisan backing.
Senate Democrats argued the proposal was insufficient because it offered no enforcement mechanism and left the requirement optional for states. "Here we need some real action on data centers and what does the Republican senator from Ohio come up with? Something that is optional," Senate Minority Leader Chuck Schumer said on the floor.
Republican leaders, including Ohio Lieutenant Governor Jon Husted, promoted the legislation as a way to demonstrate concern for affordability ahead of the upcoming congressional elections. Husted told colleagues that passing the bill was "the only game in town" for showing voters that Republicans were addressing high electricity costs.
Democrats countered that the bill’s language would not deliver tangible relief to consumers. "If ratepayers read this and see that it’s a name that says ratepayer protection and provides no relief in rates, they’ll rightly be angry," Senator Peter Welch of Vermont said.
The vote comes as both parties seek to appeal to voters over the cost of living, with data-center expansion—driven by artificial-intelligence workloads—raising concerns about regional power demand. Some Republicans, such as Senator Josh Hawley of Missouri, suggested broader measures to lower gas and health-care costs, while others noted the political challenges of addressing inflationary pressures ahead of the midterm contests.