US Senate Blocks Data Center Power-Cost Bill Amid Election-Year Clash

(MENAFN- Live Mint) A Senate effort to address concerns over the impact of data centers on electricity prices failed to move forward on Wednesday, as lawmakers became embroiled in an election-year dispute over how best to tackle the issue.

Republican senators had scheduled one of the chamber's final votes before leaving Washington to campaign on a bill they said would demonstrate action on the effect of rapidly expanding data centers on consumers' monthly power bills.

The measure required 60 votes to advance but received only 57, with 43 senators voting against it.

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The legislation is relatively limited in scope. It would require utility regulators to consider adopting a federal standard under which large electricity customers would be charged rates designed to cover the cost of infrastructure upgrades needed to serve them.

Democrats argued that the proposal does not go far enough, describing it as little more than a recommendation to regulators. Republicans, meanwhile, said the measure would send a clear signal to regulators that action is needed.

The bill was sponsored by Republican Sen. Jon Husted of Ohio, who is facing a competitive reelection campaign. His Democratic opponent, former Sen. Sherrod Brown, has targeted Husted in campaign advertising, referring to him as the“face of data centers.”

“You all know this is the only game in town,” Husted told reporters in advocating for his bill.“This bill passing is the only way to get a chance to prove to the American people before the midterm elections whose side you're on.”

Democrats push for tougher requirements

Democratic senators said the legislation lacked sufficient enforcement and did not adequately protect electricity consumers from the costs associated with expanding data center infrastructure.

The House approved the bill by an overwhelming 417-3 vote. However, at least seven Democratic senators were needed to support advancing it in the Senate, and that support failed to materialize.

Democrats also faced a political calculation, with some arguing that passing the measure could strengthen Husted's position in his reelection contest.

“The bill is a fraud, plain and simple,” Senate Democratic Leader Chuck Schumer said.

Instead, Democrats have backed alternative legislation. Sen. Martin Heinrich, D-N.M., has sponsored a bill that would instruct the Federal Energy Regulatory Commission to establish rules requiring large electricity customers to pay for necessary upgrades to the power grid.

“They want it optional, which means zero. We want it mandatory,” Schumer said.

Data centers become an election issue

Republicans are seeking to portray Democrats as standing in the way of efforts to address a concern that has increasingly drawn voters' attention, particularly as electricity demand from data centers grows.

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The issue comes as the US prepares for the midterm elections, with lawmakers returning to their home states and districts to campaign.

Both the House and Senate are expected to remain out of session throughout October. The House had already left Washington in mid-September after canceling nearly two weeks of scheduled votes as Republicans sought more time on the campaign trail to defend their majority in the next Congress.

President Donald Trump has strongly supported the construction of additional data centers as part of the expansion of artificial intelligence infrastructure. At the same time, voter concerns over their impact on electricity costs have been growing.

The debate reflects a broader question facing policymakers: how to accommodate rapidly rising demand for power from data centers while determining who should bear the cost of the new generation, transmission and grid infrastructure required to support them.

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