US Senate rejects bill targeting AI data centre electricity costs | Energy News
Senate Rejects Bill Aimed at Regulating Energy Costs for Data Centers
By Al Jazeera Staff
Published September 30, 2026
The U.S. Senate voted on Wednesday against a bill that would have required state regulators to consider imposing costs on major electricity users, including data centers. The proposal failed to secure the necessary 60 votes, with a tally of 57 in favor and 43 against, effectively blocking it from advancing due to a procedural filibuster.
Only four Democrats—Maggie Hassan, Amy Klobuchar, Jon Ossoff, and Raphael Warnock—joined Republicans in supporting the legislation. Proponents argued that the bill would alleviate rising energy costs that have burdened households across the nation.
The surge in demand for data centers, driven by the rise of artificial intelligence, has resulted in significant energy consumption. Estimates suggest that there are approximately 5,400 data centers operating in the United States, which many critics argue are contributing to increasing electricity costs.
Dubbed the Ratepayer Protection Act, the bipartisan bill had earlier passed the House of Representatives with substantial support, receiving a vote of 417 to 3. However, Senate Democrats contended that the measure lacked sufficient protections for consumers. They advocated for mandatory measures instead of the bill’s proposal to simply “consider” a federal utility rate standard, emphasizing the need for enforceable regulations to ensure consumer relief.
Senate Democratic leader Chuck Schumer criticized the legislation, labeling it “toothless.” He pointed out that it failed to mandate that data centers bear the costs associated with upgrades to electricity infrastructure. Schumer stated, “We need real action on data centers, and what do Republicans decide all of a sudden to push forward? A bill that is totally optional.” He challenged Republicans to support a more robust Democratic alternative that he claimed would provide the necessary safeguards.
Despite the Senate’s decision, data centers continue to proliferate across the country, with many new facilities under construction. Virginia and Texas currently lead the nation in the number of operational data centers, followed closely by California, Ohio, and New York.
A recent poll indicates that 53 percent of Americans are either “extremely” or “very” concerned about the impact of data centers on local electricity prices and water supplies.
