Bill Lowering Public Cost Of Data Centers Fails In The Senate

The Ratepayer Protection Act would have set a federal rate for states to charge data centers that consume large amounts of electricity.

Sep 18, 2026 - 16:50

Bill Lowering Public Cost Of Data Centers Fails In The Senate

Electric measuring power meter for energy cost at home and office. — Source: sasirin pamai / Getty

Congress appears to be feeling pressure on the hot-button issue of AI data centers. In a rare show of overwhelming bipartisanship, the House passed a bill to protect the public from higher energy bills caused by nearby data centers. Unfortunately, that same energy wasn’t to be found in the Senate.

The Washington Post reports that the House voted 417-3 to pass the Ratepayer Protection Act. The act tells states to consider charging companies that operate new data centers a federally set rate for high-volume electricity usage. The act would take two years to take effect fully.

So basically, it’s more a suggestion than a direction. Love that for us.

Rep. Tom Barrett (R-Mich.) is one of the vulnerable House members who signed on to the legislation. “I’ve heard a lot from my constituents about data centers in particular,” he said, adding that he has introduced other bills on the topic.

“We should go as far as we can to make sure that nobody’s energy rates are being increased by any data center project,” Barrett said, adding that decisions about whether or not a data center is built should be decided by the states and their residents.

Senate Majority Leader John Thune (R-S.D.) said that the Senate could take up the bill

Even if it passes through the Senate, there’s also the question of whether President Donald Trump would even sign it into law. Trump has repeatedly dismissed any attempt at regulating AI companies and data centers. He’s also said in no uncertain terms that he’s not all too concerned about the economic impact his action or inaction may have on the average person.

None of that may even matter though, as Sen. Martin Heinrich (D-N.M.) blocked passage of the bill in the Senate on Thursday. Sen. Jon Husted (R-Ohio) sought unanimous consent to pass the bill on Thursday, but Heinrich blocked it in favor of introducing his own bill. Heinrich’s bill takes a much harder line against data centers. Heinrich’s bill would order the Federal Energy Regulatory Commission to develop regulations for tech companies when building data centers and other projects that consume large quantities of power.

While Heinrich agreed something needed to be done about the power consumption of data centers, he said, “We’re not going to get there with the bill that the senator from Ohio has proposed.”

Look, it’s good politics to deny Republicans a legislative win ahead of the midterms, but it also gets in the way of anything meaningful being done to address the impact data centers are having on everyday life. Heinrich’s bill also didn’t receive unanimous consent, so any regulation on data centers likely won’t pass until after the midterms.

Data centers have been a source of consistent controversy in recent years for several reasons. People living in cities and neighborhoods where data centers have been built have noted that their utility bills have risen dramatically due to the massive amount of power data centers consume. This issue is largely why the Ratepayer Protection Act exists.

The aggressive uptick in data center construction has also had a negative economic impact for consumers, as the price of nearly all electronics has increased significantly. Everything from laptops, phones, to gaming consoles has seen a significant uptick in prices. To give you a personal example, a 1TB solid-state drive I bought in 2023 for $89 now costs $220. On sale.

The environmental impact of data centers has also been a major concern. The light and noise pollution from the data centers lowers the quality of life in the neighborhoods they’re located in, and that’s not even the worst of it. In Tennessee, lawsuits have been filed against Elon Musk’s xAI due to the air pollution caused by the gas turbines powering its data centers located in the predominantly Black Memphis area.

The backlash against data centers has become so pronounced that it’s actually had electoral consequences. In Festus, Missouri, voters ousted every member of the city council who voted in favor of building a new data center in the town.

With a midterm election coming up that isn’t looking good for Republicans, it’s not surprising that the Ratepayer Protection Act had such pronounced bipartisan support. It’ll take time to see if it actually has any benefit for us.