Republicans Split On How To Legislate On Data Centers

Republicans in Congress are no closer to addressing how data centers affect electricity bills, a week after the president urged legislation.

GOP leaders pledged to work with the White House to ensure that the rapid expansion of data centers driven by artificial intelligence does not raise ratepayer electricity bills.

But committee inaction and a derailed markup Thursday show growing discord within the party on how to carry out President Donald Trump's AI national policy framework.

House Energy and Commerce Chair Brett Guthrie (R-Ky.) — who joined House Speaker Mike Johnson (R-La.) and Majority Leader Steve Scalise (R-La.) last week in saying Congress "must take action" — said he’s unsure whether federal legislation is necessary.

“We want the people using the data to pay for it, and we want to make sure local consumers are protected,” Guthrie said. “I’m not sure if it’s going to be a federal law, or if each local community can do it themselves.”

The White House urged Congress to codify the “ratepayer protection pledge” that Trump unveiled earlier this month, which would compel technology companies to pay for or provide their own power for data centers.

But while leaders are unsure how to proceed, lawmakers who have been active on data center issues appear determined to chart their own course.

Sen. Josh Hawley (R-Mo.), who has a bill with Sen. Richard Blumenthal (D-Conn.) to force data centers to find independent power sources, said he welcomed the new White House directive but would continue to push his own legislation.

“I have my own legislation, bipartisan legislation. I think that it fits perfectly within the framework,” Hawley said.

Hawley’s is one of a several data center proposals floating around Capitol Hill. But none has yet secured the backing of leadership, and committees of jurisdiction do not appear poised to act.

Rep. Bob Latta (R-Ohio), chair of the Energy and Commerce Subcommittee on Energy, said his panel has no immediate plans regarding data centers. A spokesperson for Senate Energy and Natural Resources Chair Mike Lee (R-Utah) did not return a request for comment.

Bill pulled

A failed attempt in the House Judiciary Committee to pass a data center bill Thursday laid bare the general malaise in the party when it comes to legislating on the issue.

The committee fast-tracked H.R. 8037, the “Protect American AI Act,” which would limit litigation against data centers’ environmental reviews. The bill, introduced this week by Rep. Michael Baumgartner (R-Wash.), was one of the first data center proposals to get scheduled for markup. But objections derailed the effort.

Rep. Thomas Massie (R-Ky.), who regularly challenges his party's leadership, wrote on social media that he planned to vote against the bill “because no industry deserves special treatment under the law.”

“I wasn’t the only Republican uncomfortable with a bill to exempt data centers from standard environmental regulation,” he wrote. “Thankfully the bill got pulled from consideration.”

Baumgartner said in an interview that the bill was pulled for logistical reasons. The House Judiciary Committee may soon revisit the measure, a person familiar with the situation said.

Bipartisan action?

The uncertainty about data center legislation doesn't mean there isn't room for talks. Democrats have not entirely written off Trump’s proposal to codify the “ratepayer protection pledge."

Senate Energy and Natural Resources ranking member Martin Heinrich (D-N.M.) said the requirements in the pledge are “something I would be interested in."

"I’m deeply interested in making sure that these costs don’t get pushed off on customers," he said.

This week, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.), two progressive stars, unveiled legislation to enact a data center moratorium. But that proposal doesn't have broad support in either party.

Asked about the White House plan, Sen. Mark Kelly (D-Ariz.) said, "Certainly we have to protect people from skyrocketing electricity rates. We always have to work with Republicans, and that’s one of the things we’re looking at.”

Still, Kelly cautioned that White House proposals often stall on Capitol Hill. "The White House throws out proposals, and they’re just kind of out there, and then they don't turn into legislation," Kelly said