The House of Representatives passed a bill Wednesday that would force data centers to cover any extra utility costs they create, as the issue takes center stage ahead of November’s midterm elections.
The legislation, known as “The Ratepayer Protection Act,” passed with flying colors, with a final tally of 417-3, according to CNBC.
The bill targets the recent expansion of data centers across the country linked to an uptick in artificial intelligence, and protects consumers from rising costs, Reuters reported.
It also sets standards that state regulators can adopt to require artificial intelligence data centers “with a demand of 100 megawatts or more to cover the costs of building new power sources, transmission lines, and other infrastructure, rather than passing those costs down to consumers,” according to CNBC.
Democratic Rep. Kathy Castor of Florida and GOP Rep. Gabe Evans of Colorado introduced the bill and garnered dozens of co-sponsors.
“My neighbors across Florida are grappling with skyrocketing electric bills. Ratepayers should not have to subsidize wealthy corporations’ growing energy demands, especially from AI data centers,” Castor said in a June statement.
Despite passing the House, its future in the Senate remains unclear.
“The principle is commonsense: Those creating the new demand should be responsible for the costs associated with meeting that demand,” Evans wrote in an op-ed for the Washington Reporter on Monday.
“Many American communities today are seeing that when data center development is done responsibly, American consumers can actually benefit — from lower utility rates to decreasing tax rates, all while keeping their data stored securely here at home, under American laws and protections, rather than in data centers controlled by Communist China,” he continued.
“This issue is only becoming more important as the global race for artificial intelligence accelerates,” Evans added.
He also stressed that “Communist China is working every day to outcompete the United States, wage cyberwar, steal American innovation and information, and expand its technological influence around the world.”
“America cannot afford to lose that race,” Evans concluded.
House Democratic Leader Hakeem Jeffries called it an “appropriate step forward” but said that “more clearly needs to be done,” during a news conference this week.
GOP House Speaker Mike Johnson used a tactic known as “suspension of the rules” to bring the bill to the floor, expediting the process due to its broad support and lack of controversy.
This article appeared originally on The Western Journal.
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