House passes bill to shield Americans from data center energy costs

Washington — The House on Wednesday overwhelmingly passed legislation aimed at protecting Americans from shouldering the potential costs of data centers on their electricity bills. 

The bipartisan Ratepayer Protection Act cleared the House in a 417 to 3 vote. House GOP leaders fast-tracked the bill, which required two-thirds majority support for passage. It now heads to the Senate. 

Its passage comes as lawmakers are under pressure to address soaring energy costs that have been partly attributed to the data center boom driven by the AI race.

The bill was introduced by GOP Rep. Gabe Evans of Colorado, who is running in a competitive race. Several Republicans facing tough reelection bids signed on as cosponsors in recent weeks, as affordability and AI issues are central themes in the 2026 campaign.

Evans’ measure seeks to force tech companies to pay for the costs of the new energy infrastructure that serves the data centers, instead of passing costs on to consumers. It would encourage the state agencies that regulate utility companies to establish standards ensuring any “large-load customers” — including large-scale data centers — are billed for the cost of new electricity generation.

As the data center industry grows at a faster clip than the U.S.’ capacity to generate electricity, fears have mounted about the pressure it could put on the power grid. The International Energy Agency estimated last year that electricity consumption by U.S. data centers could more than double from 2024 levels by the end of the decade. Other estimates have found the facilities could gobble up more than 10% of U.S. power demand by 2030.

Those worries have prompted backlash against data center development at the state and local level and political headaches for both parties nationally — adding to broader political uncertainty about the AI boom.

President Trump, who has largely backed the AI industry, has urged data center developers and tech firms to sign a pledge to build or purchase their own power supply. The White House says hundreds of utility companies have signed onto the pledge, along with dozens of data center operators and major AI companies.

House Minority Leader Hakeem Jeffries, a New York Democrat, on Monday called the legislation “a step forward” but said “more clearly needs to be done.” 

GOP Rep. Brett Guthrie of Kentucky, the chairman of the House Energy and Commerce Committee, said Tuesday that the legislation “takes action on behalf of our constituents so we may keep costs low while ensuring the U.S. leads in the next-generation economy.” 

“As this industry continues to develop, I want to be absolutely clear that we need it to develop here at home and not in China,” Guthrie said during floor debate. 

Democratic Rep. Frank Pallone of New Jersey, the committee’s ranking member, called the legislation “imperfect” and argued it “only addresses one small part of the puzzle.” 

“Americans across the country are furious about the unchecked development of data centers and artificial intelligence. Furious about what it means for their communities, for their jobs, or even for their lives. And I want to promise that this bill is not the end of our focus on these issues. It’s only the beginning,” Pallone said on the floor.