Pressure is growing on House GOP leaders to allow a floor vote before the midterms on legislation designed to shield their constituents from the costs associated with data centers, with an increasing number of Republicans worried that mounting opposition to the energy-sucking facilities could hurt them at the polls.
Reeling from voter complaints over the five-week summer recess about rising power prices linked to the nationwide data center boom — necessary to power the growing artificial intelligence demand — some Republicans are now pressing for action around a bill called the Ratepayer Protection Act.
The bipartisan measure, which advanced unanimously out of the House Energy and Commerce Committee in July, would require states to consider adopting a federal standard that would ensure data centers cover the costs of the grid upgrades needed to serve them.
“I’m encouraged by the momentum behind the Ratepayer Protection Act, and I’m hopeful we’ll see it come to the floor when Congress returns in September,” Rep. Gabe Evans (R-Colo.), an original sponsor of the bill alongside Rep. Kathy Castor (D-Fla.), said in a statement Wednesday. “This legislation earned unanimous bipartisan support in committee, and we continue to see more members sign on every week.”
But GOP leaders are so far undecided on whether to bring the measure up before the November elections — driving anxiety among Republicans who fear they’re politically vulnerable on an increasingly polarizing issue.
“We’ve reached out to Majority Leader [Steve] Scalise to let him know that we’d like to see the Ratepayer Protection Act on the floor as soon as the House comes back from August recess,” said an aide for a Republican member of the Energy and Commerce Committee, granted anonymity to describe internal party dynamics. “Our constituents are demanding substantive action on data centers.”
Another House GOP aide, also granted anonymity to speak candidly, was even more blunt about the political urgency at play: “There’s not really a point in passing this bill after the election.”
When members return to Washington Monday after the August recess, the House is only scheduled to be in session for 15 days before breaking again until after the November elections. A spokesperson for Speaker Mike Johnson declined to comment on the floor agenda for the latter half of September.
A spokesperson for Scalise, meanwhile, said Wednesday night that “no decisions have been made as leadership has heard concerns from members about the bill.”
The spokesperson didn’t elaborate on those concerns, but Scalise, in earlier comments provided to POLITICO, said the data center dilemma is ultimately “a local issue” — underscoring an aversion to strict federal regulations shared by many conservatives.
“If you want a data center in your community, it’s your choice,” he continued. “I’m from a state where we have several major data centers, and we are seeing tremendous benefits from them.”
In fact, Scalise said, increased tax revenue from Meta’s $50 billion data center has led to every teacher in Louisiana’s rural Richland Parish getting a $50,000 bonus. And in Loudoun County, Virginia, he noted that increased revenue from data centers has led to a 30 percent decrease in property taxes.
“There are tremendous benefits for communities who embrace data centers … They’re good customers, they’re good neighbors and studies prove that they don’t add to the cost of the grid,” Scalise said. “They’re paying their own way.”
Johnson, from Louisiana like Scalise, has similarly highlighted the economic potential of data centers while stressing the importance of maintaining local control. He told CBS Colorado in a recent interview that “my constituents are delighted to have [data centers]” and that they have “welcomed them with open arms.
In February, Amazon announced a $12 billion data center project in Shreveport, the most populous city in Johnson’s district. The company announced another $6 billion expansion there in August.
But there are signs some of Johnson’s constituents are more wary of data center projects: At a recent town hall dubbed “The Truth About Data Centers,” residents voiced concerns about the facilities and their potential impacts on their community.
The political winds across key swing states and districts also appear to be quickly shifting against data centers. Backlash has prompted Michigan Senate candidate Mike Rogers to announce last week that he would support a one-year data center moratorium in his state as he battles Democratic contender Abdul El-Sayed.
Sen. Jon Husted (R-Ohio), who is in a competitive race against former Democratic Sen. Sherrod Brown, has pledged he’ll work to make sure the Senate passes the version of the Ratepayer Protection Act he has sponsored in his chamber.
In the House, the Ratepayer Protection Act could end up being an easy way for Johnson and Scalise to demonstrate that Republicans are responding to voters’ calls to take the issue seriously.
The measure wouldn’t go so far as to impose a pause on data center construction but would still infuse a level of accountability on operators. It also would codify the principle behind the Trump administration’s voluntary agreement with data center developers that they should shoulder energy costs.
“Throughout August, members have heard directly from constituents that data center development and affordability are among their top concerns,” Evans said in his Wednesday statement. “This bill tackles both by ensuring hardworking families and small businesses aren’t forced to foot the bill for the massive energy demands of data centers.”
Regardless of whether the bill eventually becomes law, Francesca Hsie — deputy director for electricity at center-left think tank Third Way — said the Ratepayer Protection Act could have the effect of “signaling to states” the need to take up regulation.
Whether imagined or real, she said, public perception is that data center expansion is “inextricably linked” to rising energy costs, “and because of that, I think the public is really wanting politicians to show some sort of engagement or regulation of how buildout is happening.”
Owen Dahlkamp contributed to this report.
Read the full article here