The House Energy and Commerce Committee advanced the Ratepayer Protection Act, a bipartisan bill directing state utility regulators to consider new standards for data center electricity costs. The legislation comes as lobbying on data center issues more than doubled this spring compared to the same period last year, with over 200 entities advocating on proposals related to energy demand, moratoriums, and grid connections.
New York recently became the first state to impose a moratorium on large-scale data center construction, sparking national debate. President Donald Trump has criticized the moratorium, calling data centers "future job engines" and warning that restrictions could drive investment overseas. Meanwhile, Democrats in Congress have called for a national pause on new AI infrastructure.
The Ratepayer Protection Act does not impose a moratorium but aims to prevent data centers from shifting electricity costs onto households and small businesses. Lobbying efforts have intensified as concerns grow over the environmental and energy impacts of data centers, with pressure mounting from local governments to federal agencies.
The Federal Energy Regulatory Commission (FERC) is also considering new regulations on how data centers connect to the grid. While no national moratorium has been endorsed by congressional leaders, the debate highlights the growing political and economic stakes of the data center industry.