AI data center utility bill bill hits deadlock in Senate

Senate Republicans’ attempt to quickly pass a bipartisan bill to stem rising data center-related utility costs failed Thursday amid concerns from Democrats that the bill would rely solely on voluntary efforts by states and data center developers.

With data centers an increasingly contentious issue, Congress this week tried to fast-track a measure called the Ratepayer Protection Act in the days leading up to the November election. But Sen. Martin Heinrich (D.M.), the top Democrat on the Senate Energy and Natural Resources Committee, blocked the proposal after its sponsor, Sen. Jon Husted (R-Ohio), asked for unanimous consent to vote quickly without a roll call.

With the Senate scheduled to leave town in two weeks, Mr. Heinrich’s move all but guarantees the bill will not advance through Congress before the election.

Heinrich said the bill doesn’t go far enough, echoing concerns from progressive Democrats and environmental groups that it doesn’t prohibit states or developers from picking up costs for local residents related to facilities that store data, process information and have helped fuel the AI ​​boom.

“It is not enough to simply tell states to consider making data centers pay for power grid upgrades,” Heinrich said Thursday as he withdrew the bill on the Senate floor. “Congress needs to get serious about passing real legislation, not just voluntary pledges and proposals for states.”

Despite the setback, Husted, who is in a tough fight for re-election to his seat, said he will continue to work towards passing the bill he introduced in July.

Congress took up the measure this week as anger grew across the country over the proliferation of artificial intelligence data centers as Congress languishes ahead of November’s midterm elections.

The House passed the bill Wednesday night by an overwhelming vote of 417-3. Three progressive Democrats, Rep. Summer Lee of Pennsylvania, Rep. Delia Ramirez of Illinois, and Rep. Rashida Tlaib of Michigan, were the only opponents.

This bill would establish a regulatory framework that states could choose to adopt. They would seek to mandate AI data centers with demand of 100 megawatts or more to cover the cost of building new power supplies, power lines, and other infrastructure, rather than passing it on to consumers.

“The United States is expected to build 1,000 major data centers over the next five years, and more than 2,000 projects are currently proposed or under consideration,” Husted said on the Senate floor. “And we need to protect American ratepayers from paying the price. The clock is ticking, and we cannot afford to lose a second.”

Data centers could be a key issue this November, especially in states with fast-growing development. Husted has been criticized by his Democratic opponent, former Sen. Sherrod Brown, for allegedly helping bring a data center to the state when he was lieutenant governor.

The Cook Political Report with Amy Walter calls the race a “disastrous failure.”

The bill received overwhelming support from lawmakers, but some environmental and anti-data center groups opposed it, calling it half-baked.

“If Congress is truly going to take the AI ​​data center crisis seriously, it must reject this nonsensical bill that does nothing more than suggest that states should act,” Mitch Jones, managing director of policy and litigation at Food & Water Watch, said in a statement Monday.

In his dissenting opinion, Heinrich expressed concern about rising utility costs due to data centers. He instead promoted his proposal, called the Grid Savings Act of 2026. The bill would give the Federal Energy Regulatory Commission rulemaking jurisdiction for facilities requiring more than 150 megawatts of power and would require data centers to pay for the costs of increased demand on the grid.

Sen. Bernie Moreno (R-Ohio) opposed Heinrich’s request and criticized Democrats for blocking Husted’s proposal.

“All we had to do was make sure there was no opposition from Democratic senators,” Moreno said. “That bill, signed into law today, will provide immediate relief to taxpayers across the country and electricity customers across the country.”