House Approves Bill to Shield Ratepayers from Data Center Energy Costs

WASHINGTON — The U.S. House of Representatives voted overwhelmingly on Wednesday to pass legislation designed to prevent American households from bearing the financial burden of data center expansion. The bipartisan Ratepayer Protection Act cleared the chamber with a vote of 417-3, advancing to the Senate after being fast-tracked by Republican leadership.

The bill, introduced by Colorado Republican Gabe Evans, mandates that large-scale power consumers, including data centers, cover the cost of the new electricity generation infrastructure they require. It directs state utility regulatory agencies to establish standards ensuring these “large-load customers” are billed appropriately, rather than shifting costs onto general ratepayers.

Legislative momentum has accelerated as lawmakers face growing constituent pressure over rising energy prices, which have been partly linked to the surge in AI-driven data center construction. Several Republicans facing tight reelection campaigns in 2026 have joined Evans as cosponsors, citing affordability and AI regulation as central campaign themes.

Concerns regarding grid stability are mounting as the data center sector outpaces U.S. electricity generation capacity. The International Energy Agency estimated last year that U.S. data center electricity consumption could more than double by 2030, with some projections suggesting these facilities could consume over 10% of the nation’s total power demand.

President Trump, a supporter of the AI industry, has encouraged developers to commit to building or purchasing their own power supplies. According to the White House, hundreds of utility companies, along with numerous data center operators and major AI firms, have signed such pledges.

While the legislation enjoyed broad support, Democratic leaders noted its limitations. House Minority Leader Hakeem Jeffries described the move as “a step forward” but emphasized that further action is necessary. GOP Rep. Brett Guthrie, chairman of the House Energy and Commerce Committee, praised the bill for keeping costs low while maintaining U.S. economic leadership in next-generation technology.

Democratic Rep. Frank Pallone of New Jersey, the committee’s ranking member, called the measure “imperfect,” arguing it addresses only a fraction of the broader issues. He warned that public frustration over unchecked AI and data center development signals the beginning of sustained political focus on the sector, rather than its conclusion.