WASHINGTON — The House passed bipartisan legislation almost unanimously this week aiming to protect consumers from energy price hikes due to large data centers.
It comes as lawmakers in Albany and the Rochester area grapple with how to regulate data centers. Gov. Kathy Hochul has signed a year-long moratorium to halt data center construction while local governments figure out which regulations work best for them.
The House passed the Ratepayers Protection Act, 417-3. The bill aims to put the responsibility on tech companies, rather than consumers, to pay for power upgrades required to power large data centers. Specifically, it would create a federal standard allowing state utility regulators to decide whether to force companies to pay for power generation and infrastructure.
The vote comes after President Donald Trump said he supported building new data centers, arguing that they’re critical for U.S.-based AI companies to compete with China. Data centers house large computers required to run complex AI programs.
As News10NBC has covered, data centers often require massive amounts of energy to power their computers and large amounts of water to cool them, raising concerns over environmental harm. However, they can provide tax benefits to towns.
New York recently released new guidelines for how local governments can negotiate with developers interested in building large data centers. The framework recommends that communities make data centers pay at least $1 million per megawatt of power associated with the project.
House passes bill to prevent energy price hikes due to data centers; Comes amid NY’s moratorium WHEC.com.
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