House Passes Bill to Shield Consumers From AI Data Center Costs

House votes to protect consumers from AI infrastructure costs

The House of Representatives passed legislation Wednesday by a vote of 417-3 that would require artificial intelligence data centers to cover the full cost of their substantial energy needs, preventing utilities from passing infrastructure expenses to residential and business customers.

The bill directs state utility regulators to consider standards ensuring data centers pay for new power generation and transmission upgrades required to serve their facilities. While the measure provides federal guidance, it preserves state authority over electricity market regulation.

Rep. Gabe Evans, R-Colo., who sponsored the legislation, framed the issue as a choice between building adequate power systems or becoming dependent on nations like China for digital infrastructure. "We cannot accelerate this growth on the back of Americans working hard to pay their electric bills at the end of the month," Evans said during floor debate.

Why it matters

AI data centers consume massive amounts of electricity—often equivalent to small cities—and their rapid expansion has raised concerns about who bears the infrastructure costs. Nearly two-thirds of Americans express extreme or high concern about data centers' impact on energy prices, according to recent polling from The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago. The same survey found 57% are extremely or very concerned about effects on water supplies.

Political divisions remain despite bipartisan support

While the bill passed with overwhelming support, lawmakers remain divided on broader AI policy. More than 100 House Democrats signed a letter this week urging Speaker Mike Johnson to extend the legislative session to advance comprehensive AI safeguards. Some members have called for a complete moratorium on new data centers until safety, effectiveness, and environmental protections are established.

Rep. Frank Pallone, the ranking Democrat on the House Energy and Commerce Committee, described the legislation as a "modest first start" and promised continued focus on these issues. He criticized President Trump for dismissing community concerns, noting the president posted on social media that communities opposing data centers "must want to end up being backwards and poor."

House Majority Leader Steve Scalise, R-La., offered a contrasting perspective, citing a Richland Parish data center that generated enough tax revenue to provide local teachers with bonuses up to $50,000. "Those are the stories you're seeing in communities that have embraced it," Scalise said.

Speaker Johnson stated the bill "strikes the right balance of protecting local communities while keeping America on the cutting edge of AI development."

The vote came on what was expected to be the House's final day in Washington before midterm elections, as lawmakers addressed growing voter anxiety about AI infrastructure costs.

These details were first reported by Scripps News.