US Senate Rejects Bill Addressing Electricity Costs for Data Centres

The United States Senate has rejected a bill that would have required state regulators to consider imposing costs on data centres and other major electricity users for the infrastructure built to serve them. The measure failed by a vote of 57 to 43 on Wednesday, needing at least 60 votes to overcome a filibuster. Only four Democrats—Maggie Hassan, Amy Klobuchar, Jon Ossoff, and Raphael Warnock—supported the bill alongside Republicans. Proponents argued it would alleviate rising energy costs for households. The increasing demand for data centres, driven by the artificial intelligence (AI) boom, has raised concerns about their substantial energy consumption and its impact on electricity prices. The Ratepayer Protection Act, which passed the House of Representatives earlier this month with a vote of 417 to three, aimed to address these economic concerns. However, Senate Democrats criticized the bill for lacking mandatory measures to protect consumers from high electricity bills. Senate Democratic Party leader Chuck Schumer described the legislation as 'toothless,' emphasizing the need for real action on data centres. Despite the rejection, thousands of data centres are already operational in the US, with ongoing construction in various states. A September poll indicated that 53 percent of Americans are concerned about the effects of data centres on electricity prices and water supplies in their communities.