US House backs bill making AI data centres bear power upgrade costs
The US House of Representatives on Wednesday overwhelmingly passed a bill aimed at making artificial intelligence data centres pay the full cost of new power and transmission upgrades needed to serve them. The move came as lawmakers used what was expected to be their final day in Washington before the midterm elections to address a growing voter concern.
The bill was passed by 417-3 and would require state utility regulators to consider a standard under which utilities charge data centres for the full cost of the new infrastructure needed for them. Supporters described it as "a modest first start" to protect families and businesses from higher utility bills, though state public utility commissions would still have broad flexibility to adopt or reject federal standards when setting rates.
Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee, said, "I promise that this bill is not the end of our focus on these issues. It's only the beginning." Some lawmakers are seeking a full moratorium on AI data centres until safeguards are in place to ensure AI is safe and effective, and that the centres do not raise utility prices or harm the environment. More than 100 Democrats also signed a letter this week asking House Speaker Mike Johnson to keep the House in session this month until Congress advances meaningful artificial intelligence safeguards.
The debate on the bill also showed differing views on the role of data centres. House Majority Leader Steve Scalise said a data centre in Richland Parish in his home state of Louisiana led to bonuses of up to USD 50,000 for local teachers because of higher tax collections. "Those are the stories you're seeing in communities that have embraced it," Scalise said.
Pallone, however, said Americans had real concerns about what data centres would mean for them, and accused President Donald Trump and Republican congressional leaders of ignoring those concerns. He noted that Trump had posted on social media that communities opposed to data centres must want to end up being "backwards and poor." Pallone said, "The president in my opinion is out of touch on this issue and the American people are demanding action."
A new poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago found that nearly two-thirds of Americans were extremely or very concerned about the impact of data centres on energy prices, while 57 per cent were extremely or very concerned about their effect on water supplies. Rep. Gabe Evans, a Republican from Colorado and the bill's sponsor, said the US could either expand its power systems to meet demand or become dependent on countries such as China for its digital infrastructure. "We cannot accelerate this growth on the back of Americans working hard to pay their electric bills at the end of the month," Evans said.
The bill's passage marked an early congressional response to rising concern over the impact of AI data centres, with lawmakers divided over their benefits and risks but broadly acknowledging worries over energy costs, water use and safeguards around artificial intelligence.
