Tech companies would have to pay AI data center energy costs under bill moving in Congress

The House of Representatives on Wednesday will begin consideration of a bill to force tech companies to pay for artificial intelligence's strain on the power grid, as voters across the country express dissatisfaction with data centers driving up utility costs.

The House Energy and Commerce Committee energy subpanel is scheduled to debate and vote on the Ratepayer Protection Act, a bill that would require state utilities to consider creating a "large load standard" that would require data center builders to pay for upgrades to the grid needed to power them. The bill would codify parts of the White House's "Ratepayer Protection Pledge."

The bill represents one of the first attempts by Congress to force tech companies to pony up for data centers' massive electricity demand. It comes months away from the midterm elections, where voters will decide whether to rip total control of Washington away from President Donald Trump and the Republican Party. Amazon, Google, Meta, Microsoft and SpaceX's xAI are among the largest builders and operators of data centers.

"Families and small businesses across the country shouldn't be left to foot the bill for this new development, though the benefits of these innovations will be felt by all of society," said House Energy and Commerce Chair Brett Guthrie, R-Ky. "The Ratepayer Protection Act is a bipartisan effort, which would ensure that the costs of grid upgrades are appropriately paid for according to demand."

The bill is sponsored by Reps. Gabe Evans, R-Colo., and Kathy Castor, D-Fla.

Evans said that "Colorado families, farmers, and small businesses should not be forced to cover the costs of new power generation driven by these developments."

Castor said the bill "safeguards consumers by ensuring these data centers pay for the energy and grid upgrades they need so hardworking families and local businesses are not stuck paying more." 

The bill would aim to ensure tech companies building data centers cover the cost of new power generation, transmission lines, and other grid-related upgrades to serve large-load customers. Voters have recently expressed displeasure with data centers, especially when they drive up the cost of electricity.

A number of large tech companies signed Trump's pledge, signaling they do not oppose paying for new electricity production to power AI.

Even so, the bill still has a long way to go before becoming law.

It would need to be approved by the full Energy and Commerce Committee, the House and the Senate before reaching Trump's desk.