The House Energy and Commerce Committee on Wednesday advanced bipartisan legislation aimed at protecting electricity customers from bearing the costs of powering the nation’s rapidly expanding artificial intelligence data centers. But it didn’t come without drama.
According to Politico, the committee vote was overshadowed by an unexpected call from the panel’s top Democrat for a nationwide moratorium on new data center construction. The debate highlighted how concerns over the electricity demands of AI infrastructure have evolved from a narrow ratepayer issue into a broader political fight over whether federal policymakers should slow the industry’s expansion.
The committee approved the bipartisan Ratepayer Protection Act by voice vote after a contentious discussion. Sponsored by Rep. Gabe Evans (R-CO) and Energy Subcommittee ranking member Rep. Kathy Castor (D-FL), the measure would require states to consider adopting a federal standard requiring large electricity customers, including data centers, to pay 100 percent of the costs associated with new power generation and transmission upgrades needed to serve their facilities. State utility regulators would retain authority to reject the federal standard.
Supporters argue the legislation would codify President Donald Trump’s pledge that ordinary electricity customers should not subsidize the infrastructure needed to serve technology companies’ growing AI investments. Google, Microsoft and the Data Center Coalition all support the proposal, even as the industry maintains that data centers are not responsible for rising electricity prices.
The committee debate, however, was dominated by remarks from Energy and Commerce Committee ranking member Rep. Frank Pallone (D-NJ), who argued that legislation focused solely on ratepayer protections fails to address the broader environmental and energy consequences of AI infrastructure.
Pallone called for a nationwide moratorium on new data center construction, saying pending legislation was “not nearly enough” to address the industry’s growing electricity consumption and other environmental impacts. He argued that lawmakers need “action, not toothless promises from Big Tech.”
The proposal represented one of the strongest calls yet from a senior congressional Democrat for federal restrictions on AI infrastructure development and reflects mounting political pressure from communities that have opposed large-scale data center projects because of their effects on electric grids, water supplies and local development.
Castor, while distancing herself from the moratorium proposal, acknowledged the political forces driving Pallone’s position.
She said local governments in New Jersey have repeatedly urged lawmakers to oppose AI data center projects but argued that halting all development was not a practical solution. Committee Chairman Brett Guthrie (R-KY) similarly rejected the proposal, warning that a moratorium would undermine U.S. efforts to compete with China in artificial intelligence while Republicans continue working to address legitimate concerns from constituents.
The committee also approved two additional bipartisan measures designed to improve electricity planning for future AI demand. The Load Forecasting Enhancement Act would strengthen long-term electricity demand forecasting, while the Affordable Innovation for the Grid Act would encourage deployment of technologies intended to improve grid efficiency. Evans argued that the United States must both remain globally competitive in AI and ensure that consumers are not forced to subsidize the industry’s electricity needs.
Whether Congress ultimately enacts any federal legislation remains uncertain.
Senate Energy and Natural Resources Committee Chairman Mike Lee (R-UT) said data center legislation is not currently among his priorities, while Sen. Kevin Cramer (R-ND) suggested recent action by the Federal Energy Regulatory Commission directing regional grid operators to develop plans for addressing AI-driven electricity demand reduces the urgency for congressional action this year.
Other senators, however, indicated that growing voter concern may force Congress to act. Sen. Tim Kaine (D-VA), whose state hosts the nation’s largest concentration of data centers, said the issue has risen dramatically in importance among constituents. Sen. Josh Hawley (R-MO) went further, saying Congress should approve the Ratepayer Protection Act before allowing additional data center construction, arguing that technology companies should bear the full cost of the electricity infrastructure their facilities require. Senate Environment and Public Works Committee Chair Shelley Moore Capito (R-WV) also expressed support for the legislation’s underlying concept while acknowledging increasing public resistance to large-scale data center projects.
