Trump Wants To Move On Data Centers. Not So Much Congress.

President Donald Trump is trying to manage the political risks of data centers. But congressional Republicans are far from settling on a strategy of their own.

Lawmakers on both sides of the aisle have introduced legislation to make sure the proliferation of energy-hungry data centers don't continue hiking electricity prices — and some are jockeying for leadership on the issue.

Sens. Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) have one of the more aggressive bills. “Guaranteeing Rate Insulation from Data Centers (GRID) Act,” S. 3852, would mandate that all new data centers use their own power sources separate from the grid and would require all currently operating data centers to migrate off the grid within 10 years.

“Voters are saying ‘We want some protections. We do not want to pay more in energy.' I think that if we don't get that message, I think that voters will make sure we get it," Hawley said in an interview. "It'll probably be unpleasant.”

But a spokesperson for Senate Majority Leader John Thune (R-S.D.), who would ultimately be responsible for putting any data center bill to a vote, said there were no imminent plans to bring data center bills forward. House Speaker Mike Johnson’s (R-La.) office did not respond to request for comment.

Three different Senate proposals have been referred to the Energy and Natural Resources Committee, where they have yet to receive a hearing or a markup. Ranking member Martin Heinrich (D-N.M.) said he would like to see action.

“I would definitely welcome that, and this is one of those areas where [Chair] Mike Lee [R-Utah] and I have been somewhat aligned in the communications that we've signed together to say, ‘Do not do this development on the backs of ratepayers,'" Heinrich said.

Lee’s office did not respond to request for comment, but he and Heinrich signed a joint letter to the Federal Energy Regulatory Commission last year supporting the White House’s push for faster data center connections to the grid.

"I think that there are a lot of developers and hyperscalers that are really botching this out of the gate," said Heinrich.

President Donald Trump during his State of the Union address Tuesday said the White House has negotiated deals with technology giants making them promise to pay for their own energy. Energy Secretary Chris Wright said “all of the brand-name hyperscalers” had agreed.

“My bill is based on what the president talked about. It implements it, makes it permanent, makes it guaranteed, and it has bipartisan support. So I think we should do that,” Hawley said.

Blumenthal cast doubt on the idea that technology companies would abide by a voluntary contract with the Trump administration.

"The administration has shown that it vacillates and loses enthusiasm on so many topics, especially when Big Tech is the adversary or is adversarial. So I think our bill is absolutely necessary, and it meets a really strongly felt need on the part of consumers," Blumenthal said.

But both Hawley and Blumenthal were skeptical about their bill seeing action on the floor. The Democrat pointed to lobbying by Big Tech.

“Let me be blunt — Big Tech has a lot of sway around here. And I expect they may say they’re for the idea, say they support the idea, but in fact work behind the scenes against it,” he said.

Another bill, from Sen. Tom Cotton (R-Ark.), may be more appetizing for Republican leaders and rank-and-file lawmakers who are usually resistant to regulations.

The "Decentralized Access to Technology Alternatives (DATA) Act," S. 3585, would incentivize, rather than mandate, data center operators to build their own energy supplies by loosening federal regulations. Republican Rep. Nick Begich of Alaska plans to introduce companion legislation in the coming days.

“America leads when we provide the private sector the space it needs to move at the speed of innovation,” Begich said in a statement. “The Data Act makes sure that leadership continues at what may be the most important technological moment in mankind’s history.”

Sen. Chris Van Hollen’s (D-Md.) “Power for the People Act,” S. 3682, would prevent data center costs from being passed on to households and small businesses.

It would allow data centers to remain on the grid as long as they’re paying for the needed increased capacity. Van Hollen is looking for a Republican co-sponsor.

“We will continue to open it up and reach out to Republicans,” Van Hollen said. “All of them say they sort of support the basic idea behind the bill, but we need them to join.”

Reps. Greg Landsman (D-Ohio) and Don Beyer (D-Va.) are proposing a bill that would require FERC to hold a conference with operators and then issue a report on how to protect ratepayers. Virginia has the most data centers in the country. Ohio has roughly 200.

Independent Sen. Bernie Sanders of Vermont, who caucuses with Democrats, wants a moratorium on new data center construction to study cost and land-use impacts. But even other progressives aren't rushing to join him.

"We need to slow down the development of [artificial intelligence] to give democracy a chance to catch up," Sanders said in a floor speech Wednesday. “A moratorium will give us time to figure out how to make sure AI does not harm our environment or jack up the cost of electricity."

The Data Center Coalition spent almost $1 million on Washington lobbying last year, according to OpenSecrets. The trade group includes companies like Amazon and Google. A major priority for the tech sector on Capitol Hill is broad permitting reform to make approvals easier for all kinds of energy projects. Grid upgrades are also part of the discussion.

“The industry is fully committed to paying the full costs of service for our electricity,” said Dan Diorio, vice president of state policy at the Data Center Coalition, during a recent interview. “This is an industry that is very much leaning in and being a responsive partner to these concerns."