House passes bill aimed at addressing impact of data centers on energy
costs
[September 17, 2026]
By KEVIN FREKING
WASHINGTON (AP) — The House overwhelmingly approved a bill Wednesday
that aims to have artificial intelligence data centers pay for their
substantial energy needs as lawmakers used what was expected to be their
final day in Washington before the midterm elections to address a
growing voter concern.
The legislation would require state utility regulators to consider a
standard by which utilities charge data centers for the full cost of the
new power and transmission upgrades needed to serve them. The bill
passed by a vote of 417-3.
Supporters of the bill described the legislation as a “modest first
start” in protecting families and businesses from higher utility bills.
It essentially provides a federal recommendation while preserving state
power to regulate electricity markets.
“I promise that this bill is not the end of our focus on these issues.
It's only the beginning,” said Rep. Frank Pallone, the ranking Democrat
on the House Energy and Commerce Committee.
Some lawmakers are calling for a full moratorium on AI data centers
until safeguards are put in place that ensure AI is safe and effective
and that the data centers don't increase utility prices or harm the
environment. Meanwhile, more than 100 Democrats signed onto a letter
this week that called on House Speaker Mike Johnson to keep the House in
session this month until Congress advances meaningful artificial
intelligence safeguards.
Johnson said the bill that passed the House "strikes the right balance
of protecting local communities while keeping America on the cutting
edge of AI development.”
The debate over the bill offered different views on the merits of data
centers. House Majority Leader Steve Scalise, R-La., said the
development of a data center in Richland Parish in his home state
generated bonuses of up to $50,000 for local teachers as a result of
increased tax collections.
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Meta data centers operate, Saturday, Sept. 5, 2026, near Social
Circle, Ga. (AP Photo/Mike Stewart)
“Those are the stories you're seeing in communities that have
embraced it,” Scalise said.
But Pallone said Americans have real concerns about what data
centers will mean for them, adding that President Donald Trump and
Republican congressional leaders have swept those concerns to the
side. He noted that Trump posted on social media that communities
opposed to data centers must want to end up being “backwards and
poor.”
“The president in my opinion is out of touch on this issue and the
American people are demanding action,” Pallone said.
Nearly two-thirds of Americans are extremely or very concerned about
data centers' impact on energy prices and 57% are extremely or very
concerned about the impact on water supplies, according to a new
poll from The Associated Press-NORC Center for Public Affairs
Research and the Energy Policy Institute at the University of
Chicago.
Rep. Gabe Evans, R-Colo., the bill’s sponsor, said the U.S. can
either build out its power systems to meet demand or become
dependent on countries like 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.
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