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Senate Democrat Blocks Immediate Passage Of House-Passed Data Center Utility Rate Bill
A Senate Democrat, Martin Heinrich, blocked the unanimous consent passage of the Ratepayer Protection Act, a House-passed bill. This legislation encourages states to require data centers to cover their energy costs. Senator Jon Husted, the bill's sponsor, highlighted the expected surge in data center construction. He emphasized the critical role data centers play in modern life, supporting everything from AI to national defense. The Ratepayer Protection Act proposed that states consider models for data centers to fund their own energy within a year. However, it did not mandate state adoption of these models. Senator Heinrich argued for stronger federal enforcement mechanisms rather than voluntary state-level considerations. He believes the bill lacks sufficient "teeth" to address rising utility rates for Americans. Heinrich instead proposed his Grid Savings Act, which would require large-load customers like data centers to pay for necessary grid connections. Data centers, especially those powering AI, consume vast amounts of electricity, currently around 4% of the U.S. grid. This consumption is projected to rise significantly in the coming years. Residents near data centers have reported increased energy bills and concerns about noise and water usage, driving public skepticism.