House Energy and Commerce Committee Chairman Brett Guthrie said Wednesday that Congress should move forward with legislation designed to ensure data centers bear the costs of the massive electricity infrastructure needed to support their growing energy demands, Politico reported.
Speaking during Politico's Energy Summit in Washington, the Kentucky Republican said he wants to codify a voluntary industry commitment aimed at protecting residential and commercial ratepayers from subsidizing the rapid expansion of data centers.
"We have the Ratepayer protection pledge, which we want to put into statute," Guthrie said.
The comments signal continued momentum behind congressional efforts to address concerns that the rapid growth of artificial intelligence and cloud-computing facilities could place increasing strain on the nation's electric grid and drive up utility costs for consumers.
Earlier this year, House leaders pledged to pursue legislation after the White House secured commitments from major data center operators to pay for the energy infrastructure required to serve their facilities.
Guthrie's committee examined the issue during an April hearing on draft legislation known as the "Ratepayer Protection Act."
The proposal would amend the Public Utility Regulatory Policies Act of 1978 to require large electricity consumers, including data centers, to cover the full cost of transmission, distribution, and generation infrastructure built to meet their power needs.
Supporters argue the measure would prevent households and small businesses from absorbing costs associated with the rapid expansion of data centers, which are increasingly needed to power artificial intelligence systems and other data-intensive technologies.
Lawmakers from both parties and both chambers have expressed interest in addressing the issue, though proposals differ on how aggressively the federal government should intervene, Politico reported.
Missouri Sen. Josh Hawley, a Republican, and Connecticut Sen. Richard Blumenthal, a Democrat, have introduced bipartisan legislation that would require data centers to secure independent power sources rather than relying solely on local electric grids. The measure has not yet advanced through committee.
The data center industry has pushed back against claims that it is solely responsible for rising electricity costs, arguing that multiple factors are contributing, including aging infrastructure and broader grid modernization efforts.
Industry representatives have nevertheless indicated support for legislation that formalizes existing commitments to cover infrastructure costs.
"We are actively working on the congressional efforts to try and codify what has been the case, which is the commitment of our members to pay their full cost of service," Data Center Coalition CEO Josh Levi said on Politico's Energy podcast.
Levi cautioned, however, that lawmakers must ensure utilities and regulators have sufficient flexibility to implement the policy effectively.
"The challenging dynamic in that is ensuring that the regulatory structures are in place for us to continue to do that," he said.
Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.