New Bipartisan Legislation Aims to Shield Consumers from Data Center Costs

Senators Josh Hawley and Richard Blumenthal have introduced the first bipartisan bill in Congress to tackle the power usage of data centers, which can significantly impact consumers’ electricity bills. The newly proposed legislation, known as the “Guaranteeing Rate Insulation” or “GRID” Act, has two primary goals. It seeks to protect consumers from any price hikes associated with data centers on their utility bills and to ensure priority access to the grid for regular electric users.

A significant aspect of the bill mandates that new data centers must use off-grid power sources, while existing centers will have a 10-year grace period to transition to such sources. Additionally, the bill calls for data center operators to make their current and future power usage publicly available.

American families should not have to shoulder the burden of the rising electricity costs produced by data centers in Missouri and across the country, said Hawley, a Republican from Missouri. This is unacceptable.

Blumenthal, a Democrat from Connecticut, voiced his support, emphasizing that the legislation will prevent large technology companies from increasing costs for families due to their AI-related electricity consumption. Families should not be forced to bankroll Big Tech’s electricity and infrastructure costs, stated Blumenthal.

This effort follows several Democratic-led initiatives aimed at mitigating the negative impact of data centers on consumer utility bills. For instance, last month, Senator Chris Van Hollen introduced his “Power for the People” Act, while Representatives Mike Levin, Kathy Castor, and Rob Menendez introduced respectively the “SHIELD Act” and the “PRICE Act”. In December, Representative Greg Landsman presented the “Protecting Families from AI Data Center Energy Costs Act”.

This bipartisan initiative comes shortly after former President Donald Trump remarked on his administration’s dedication to prevent electricity bill increases due to the rapid growth of AI and data center infrastructure, which is a significant part of his economic strategy.

I never want Americans to pay higher Electricity bills because of Data Centers, Trump shared on Truth Social, emphasizing the importance of data centers in maintaining American leadership in AI, while holding tech companies accountable for their costs.

State government officials are joining the conversation. Pennsylvania Governor Josh Shapiro recently announced guidelines for data centers within his state, advocating for legislative backing.

The technology sector is divided on these approaches. Some companies, like Microsoft, have shown willingness to invest more in their power expenditures and are exploring ways to establish independent power sources. Conversely, other companies argue that they already bear a fair portion of electricity costs.

As AI technology and data center expansion progress rapidly, both political parties are grappling with the political implications with upcoming midterm and presidential elections in sight. Locally, many residents express concern over potential utility bill increases and other challenges related to the energy-intensive nature of data centers, essential for powering AI systems.

Allan Smith is a political reporter for NBC News.