Senate bill would make data centers pay full cost of power infrastructure
The Senate's Bipartisan American Affordability and Jobs Act proposes that large data centers cover all energy and transmission expenses, preventing cost shifts to other customers.
A newly released Senate permitting package, formally the Bipartisan American Affordability and Jobs Act, contains provisions that would overhaul how data centers are charged for electricity. Under the proposal, utilities must allocate the entire cost of transmission and related infrastructure to large-load operators, ensuring no incremental charges are passed to other ratepayers. Data centers would also need to provide financial assurances before any generation, transmission, or distribution project starts, and they must report their energy consumption to the Department of Energy's Energy Information Administration.
The bill, which also streamlines permitting for highways and other energy projects, faces pushback from Rep. Jared Huffman, who argues it gives up too much on the Endangered Species Act and should be postponed until Democrats control the House. Negotiators are expected to amend the language before the Senate votes after the midterm elections, after which the measure would move to the House for further debate.
Why it matters
It could shift billions in electricity costs onto data-center operators and reshape how the U.S. powers its growing digital infrastructure.
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