Washington Moves on Data Center Power Costs as AI Drives Electricity Demand
Synopsis
The US data center bill passed the House 417-3 as electricity demand rises. Berkeley Lab projects data centers could reach 11.8% of US consumption by 2030.
The U.S. House has approved data centre bill regulations to manage electrical energy and infrastructure costs associated with the rapid expansion of data centres, which are fueling artificial intelligence and other computer products.
The Ratepayer Protection Act was approved 417-3 on September 16. At a state level, under the US data center bill, state utility regulators would have to determine whether to levy charges on large electricity users, such as data centres, to finance new infrastructure required to support them.
House Vote Puts Power Costs in Focus
The US data center bill wouldn’t specifically mandate a data center charge across the country, but rather encourages state regulators to consider the rate recovery of new power and transmission facilities built solely for large customers.
Rep. Kathy Castor of Florida (D-Fla.) and Rep. Gabe Evans of Colorado (R-Colo.) introduced the nonpartisan measure, which is the first House legislation to directly address the economic implications of the booming data center industry.
The issue has arisen in tandem with a rise in electricity demand. According to the Lawrence Berkeley National Laboratory’s United States Data Center Energy Usage Report: 2025 Update, data centers are projected to consume 11.8% to 15.3% of the nation’s electricity in 2030.
US Data Center Demand Rises Globally
Due to the significant amount of electricity consumed by data centers in the United States, the data center industry’s electricity consumption is a major concern.
According to the most recent International Energy Agency (IEA) report in 2026, the electricity needs of data centers around the world are expected to rise from roughly 485 TWh in 2025 to 950 TWh in 2030. The majority of the increase, the IEA predicts, will be in the United States and China.
According to the IEA, data center electricity demand climbed by 17% in 2025, compared to 3% for the entire world. In addition, it is anticipated that data centers will account for nearly half of the increase in electricity demand in the United States by 2030.
The new electric bill for the additional grid investment in the US, which is required as these facilities expand, is thus centered on the issue of who should pay for it. According to Public Citizen, one of the many critics of the bill, the law leaves the environmental and economic impact on communities to state regulators.
While the House vote marks the bill’s next step, it leaves electricity prices mostly up to states and does not directly enact a data center charge or levy.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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