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House Subpanel Advances Bipartisan Bill to Make Data Centers Pay for Grid Upgrades

The move could force states to weigh a federal 'large-load' standard that aims to keep utility customers from footing the cost of new data-center power needs.

Overview

  • The House Energy and Commerce energy subcommittee moved the Ratepayer Protection Act forward in markup on Wednesday as a bipartisan effort led by Reps. Kathy Castor and Gabe Evans.
  • The bill would require state utility regulators to consider a federal large-load standard that asks large customers, such as AI data centers, to cover the costs of new generation and transmission upgrades.
  • Microsoft publicly endorsed the bill and Amazon Web Services said it supports the idea, while the Data Center Coalition is still reviewing the proposal.
  • Many Democrats and advocacy groups say the bill does not go far enough and some leaders, including Rep. Frank Pallone and Sen. Chris Van Hollen, pressed for stronger federal rules or a pause on new data-center projects.
  • If it clears the full committee the bill would still need approval by the full House, the Senate, and the president before becoming law and could change where data centers are built and who pays for local grid and water impacts.