Exclusive: Senate Investigation Challenges Big Tech’s Case for AI Data Centers

When Congress reconvenes after the midterm elections, data centers will be among the issues waiting for them. In September, the House overwhelmingly passed the bipartisan Ratepayer Protection Act, 417-3, which would direct states to consider standards requiring large-load customers such as data centers to cover the incremental costs of the generation, transmission, and distribution infrastructure needed to serve them.

But the measure stalled in the Senate, as Democrats argued it was toothless because it didn’t require states to push any costs to the companies. The Senate ultimately voted 57-43 against advancing the bill.

Much of the authority over electricity rates remains with state regulators, which means the biggest fights will continue to play out in statehouses and public utility commissions. But the Senate investigation gives Congress a new set of findings to work with as lawmakers consider whether federal standards should govern large electricity users, transparency around data center deals and the public subsidies supporting the industry’s expansion.