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US House advances first bill addressing economic impact of data center boom
The House advanced the bipartisan Ratepayer Protection Act under suspension of the rules, allowing state regulators to require AI data centers using 100 megawatts or more to fund new power and transmission infrastructure rather than shifting costs to consumers.
President Donald Trump's March 'Ratepayer Protection Pledge' inspired the legislation, which codifies federal guardrails for local utility costs. This reflects bipartisan consensus to address resident concerns over data center expansion ahead of the 2026 elections.
Rep. Evans and Rep. Kathy Castor introduced the legislation in June to address skyrocketing electric bills in Florida. Castor said, 'Ratepayers should not have to subsidize wealthy corporations' growing energy demands, especially from AI data centers.'
Environmental advocates criticized the measure, with Sara Chieffo, senior vice president of government affairs at LCV, calling it a 'weak directive' that regulators might ignore. Mitch Jones of Food & Water Watch argued it fails to address the 'AI data center crisis.'
House Minority Leader Hakeem Jeffries called the bill 'a step forward' but urged Republicans to extend the session beyond Thursday to address broader AI concerns before the seven-week recess leading to the Nov. 3 election.