Some Democratic lawmakers and big tech companies are weighing the pros and cons of a growing bipartisan bill to protect utility customers from energy costs associated with data centers, or are refraining from considering it.
House Energy and Commerce Republicans are proposing the Ratepayer Protection Act as a response to growing public opposition to data center development while preserving America’s competitiveness in artificial intelligence.
The bill, scheduled for a subcommittee vote this week, has garnered rare bipartisan support, including Colorado Republican Gabe Evans and co-sponsor Democratic Sen. Kathy Castor of Florida.
But despite Microsoft’s endorsement last week, the Data Center Coalition, an industry group that includes not only Microsoft but also tech giants like Meta, was more cautious.
“The Data Center Coalition is working with our members to explore the details of the Ratepayer Protection Act and looks forward to working with policymakers on this important topic,” Cy McNeil, the group’s senior director of federal affairs, said in a statement Monday.
The group said the industry remains committed to working with local communities, utilities and policymakers to support the responsible development of data centers and to fully pay for energy and infrastructure investments.
The bill would require states to consider federal standards that would ensure that large electric customers pay 100 percent of the cost of new generation and transmission upgrades. Subject to markup along with some suggestions for dealing with grid issues.
Microsoft last week fully supported the bill, calling it an “important step” to ensure families are protected from rising electricity bills as demand for electricity increases.
Google also supports the bill, saying in a statement Tuesday that “the Ratepayer Protection Act is a positive step toward ensuring all data center operators follow Google’s lead and protect Americans from development-related costs.”
Josh Weissman, Amazon Web Services’ director of data center delivery, said the company supports the “idea” behind the bill.
“We strongly support this idea, which is why Amazon is committed to paying for the generation and grid upgrades needed to serve our facilities,” Wiseman said.
“Policies that strengthen these principles will allow the reforms that accelerate the energy infrastructure America needs while helping to keep electricity affordable, reliable, and available as demand continues to grow.”
Other companies, including Meta, Oracle, and xAI, did not respond to requests for comment.
“Please move in the right direction”
Some Democrats and environmental advocates have been more critical, calling for tighter oversight of data center development, which could make it difficult to quickly pass a Ratepayer Protection Act or something similar.
“While the Ratepayer Protection Act is a step in the right direction, it does not address many of our concerns and leaves a significant gap in ensuring that American consumers ultimately do not have to pay for data centers,” said Sen. Chris Van Hollen (D-Md.).
Van Hollen is pushing another piece of legislation called the Power for the People Act that would establish more prescriptive federal requirements governing data center cost allocation. It will also address concerns about environmental, land use and noise impacts associated with some data center projects.
The Ratepayer Protection Act, backed by leaders on the Energy and Commerce Committee, would effectively codify the ratepayer protection pledges President Donald Trump made with big technology companies.
The bill would require state regulators to consider the proposed federal standard, but could ultimately veto it. States that already have similar policies in place may also qualify for exemptions.
Rep. Paul Tonko of New York, a ranking member of the Energy and Commerce Democratic Party and a sponsor of Van Hollen’s bill, similarly suggested that Congress should move beyond the Ratepayer Protection Act.
“I look forward to the opportunity to consider this latest proposal,” Tonko said. “But our constituents face a serious energy affordability crisis, and it would be a mistake for Congress not to do more to respond to this moment.”
“This isn’t it.”
Food & Water Watch, which has worked closely with Rep. Alexandria Ocasio-Cortez (New York) and Sen. Bernie Sanders (Vermont) on the federal data center moratorium bill, also said the bipartisan bill doesn’t go far enough.
“Congress needs to come up with a comprehensive framework to protect communities from data centers,” said Jim Walsh, the group’s policy director. “That’s not the case. The first step in putting together that comprehensive framework is to block other projects from moving forward.”
It remains unclear how many Democrats will ultimately support the bill during Wednesday’s subcommittee hike.
Rep. Jennifer McClellan (D-Va.) said she would support the bill, but insisted it was just a starting point.
“I support this bill and think it’s a good first step toward renewed bipartisanship in a Congress plagued by inaction and gridlock,” McClellan said. “We would like to see more policies requiring data centers to pay for the infrastructure and transmission upgrades needed to support them.”
Other small data center bills are also moving through Congress. House appropriators have added amendments to the Fiscal Year 2027 Energy and Water Bill to force the Department of Energy to address data center energy use.
The House Science, Space, and Technology Committee is scheduled to vote Thursday on HR 9372, the Data Infrastructure Energy Measurement and Standards Act, which would improve how data centers analyze energy and water usage.
