Some Democrats and major tech companies are offering mixed reviews — or refraining from weighing in — on a bipartisan bill gaining momentum to shield utility customers from the energy costs associated with data centers.
House Energy and Commerce Republicans are pitching the “Ratepayer Protection Act” as a response to mounting public backlash over data center development while preserving the United States’ competitive edge in artificial intelligence.
The legislation — which is scheduled for a subcommittee vote this week — has attracted rare bipartisan support, including from senior committee Democrat Kathy Castor of Florida, who is co-sponsoring the measure with Colorado Republican Gabe Evans.
But despite an endorsement last week from Microsoft, the Data Center Coalition — a trade group that includes Microsoft as well as other tech majors like Meta — was more cautious.
“The Data Center Coalition is reviewing the details of the Ratepayer Protection Act with our members and looks forward to engaging with policymakers on this important topic,” Cy McNeill, senior director of the group’s federal affairs, said in a statement Monday.
The group said the industry remains committed to paying the full cost of energy and infrastructure investments while working with communities, utilities and policymakers to support the responsible development of data centers.
The bill would require states to consider a federal standard ensuring large power customers cover 100 percent of the costs of new generation and transmission upgrades. It’s up for markup along with a handful of proposals to address grid concerns.
Microsoft fully endorsed the bill last week, calling it an “important step” toward ensuring families are protected from rising electricity costs as power demand grows.
Google is also backing the bill, saying in a statement Tuesday that “the Ratepayer Protection Act is a positive step toward ensuring that all data center operators follow Google’s lead and safeguard Americans from costs associated with development.”
Josh Weissman, director of data center delivery at Amazon Web Services, said the company supports “the idea” behind the legislation.
“We strongly support the idea, which is why Amazon is committed to paying the costs of the generation and grid upgrades needed to serve our facilities,” Weissman said.
“Policies that reinforce those principles, alongside permitting reforms that accelerate the energy infrastructure America needs, can help keep electricity affordable, reliable and available as demand continues to grow.”
Other companies like Meta, Oracle and xAI did not respond to requests for comment.
‘Step in the right direction’
Some Democrats and environmental advocates seeking stricter oversight of data center development were more critical, potentially making it harder for the “Ratepayer Protection Act” — or something like it — to become law any time soon.
“While the Ratepayer Protection Act is a step in the right direction, it doesn’t address many of our concerns and leaves significant gaps in ensuring American consumers aren’t ultimately left paying data center costs,” said Sen. Chris Van Hollen (D-Md.).
Van Hollen is pushing separate legislation, dubbed the “Power for the People Act,” that would establish more prescriptive federal requirements governing data center cost allocation. It would also address concerns about the environmental, land-use and noise impacts associated with some data center projects.
The “Ratepayer Protection Act,” backed by Energy and Commerce Committee leaders, would effectively codify President Donald Trump’s ratepayer protection pledge with major technology companies.
The legislation would require state regulators to consider the proposed federal standard but could ultimately reject it. States with comparable policies already in place could also qualify for exemptions.
Rep. Paul Tonko of New York, a senior Energy and Commerce Democrat who is leading a companion to Van Hollen’s legislation, likewise suggested Congress should go beyond the “Ratepayer Protection Act.”
“I look forward to the opportunity to examine this updated proposal,” Tonko said. “But our constituents are facing a serious energy affordability crisis, and it would be a mistake for Congress not to do more to meet this moment.”
‘This is not it’
Food & Water Watch, which has worked closely with Rep. Alexandria Ocasio-Cortez (D-N.Y.) and Sen. Bernie Sanders (I-Vt.) on their federal data center moratorium legislation, also said the bipartisan bill fell short.
“Congress needs to put forward a comprehensive framework to protect communities from data centers,” said Jim Walsh, the organization’s policy director. “This is not it, and the first step to putting together that comprehensive framework is stopping other projects from going forward.”
It remains unclear how many Democrats will ultimately support the bill during Wednesday’s subcommittee markup.
Rep. Jennifer McClellan (D-Va.) said she plans to support the legislation but argued it should be only a starting point.
“I support the bill and see it as a good first step, representing another bipartisan move in a Congress that has been plagued by inaction and gridlock,” McClellan said. “I would like to see policy that goes further to require data centers to pay for the infrastructure and transmission upgrades necessary to support them.”
Other smaller data center legislation is also moving through Congress. House appropriators added an amendment to their fiscal 2027 Energy-Water bill to have the Department of Energy address data center energy use.
The House Science, Space and Technology Committee will vote Thursday on H.R. 9372, the “Data Infrastructure Energy Measurement and Standards Act,” to improve how data center energy and water use are analyzed.
