US Bill Would Make Large Data Centers Pay For Grid Upgrades

Data Centers Face A 100MW Cost Threshold

US lawmakers have introduced the Ratepayer Protection Act, a bipartisan House bill that would require large data centers to pay the full cost of the grid and generation upgrades needed to serve their facilities.

The proposal targets large-load customers with a capacity of 100MW or more.

State utility regulators would have to set rules making those customers cover generation, transmission and other infrastructure needed for grid connection, instead of moving those costs to ordinary ratepayers.

The bill also adds a financial-assurance requirement.

Large-load customers would need to stand behind upgrade costs even if they later reduce operations or leave the grid, a provision aimed at stopping utilities and households from carrying stranded infrastructure costs.

Representatives Kathy Castor of Florida and Gabe Evans of Colorado introduced the measure.

Castor framed the bill as consumer protection against higher electric bills tied to AI data centers.

Evans said families, farmers and small businesses should not pay for new power generation driven by large developments.

Google Backs A Federal Cost-Allocation Rule

The House Energy and Commerce Energy Subcommittee is scheduled to mark up the bill this week.

Google has supported the proposal, saying data center operators should pay their own way as they build infrastructure for American growth and leadership.

Google's position matters because the measure does not attack data center construction itself.

It tries to define who pays when AI and cloud campuses need new generation, transmission or other grid infrastructure.

For developers, the policy risk is not only permitting; it is whether power access comes with a larger upfront utility-cost obligation.

The sponsorship also gives the bill a cross-party route into the committee process.

Castor is a Florida Democrat and Evans is a Colorado Republican, and both statements tied the measure to local power bills rather than to a broader moratorium on data center construction.

The bill would move a dispute now playing out across states into a federal legislative frame.

Utilities need to serve fast-growing loads, but residential and small-business customers are pushing back when infrastructure spending flows into electric rates.

State Rules Show The Fight Is Already Under Way

Several states have already moved on the same cost-allocation problem.

Oregon regulators approved a separate electricity-rate category last month for data center operators and other customers with unusually large loads, and that category is already in effect.

Oklahoma Governor Kevin Stitt signed a bill intended to protect ratepayers from rising utility and infrastructure costs associated with data centers.

Florida enacted a similar law that blocks utilities from passing data center infrastructure costs to residential and small-business ratepayers and requires large-scale users to bear their full cost of service.

DCD also cited Ohio, North Carolina and Virginia as states where similar rules have been proposed or passed.

The federal bill would not settle every local grid dispute, but it would give regulators a clearer national standard for very large data center loads.

The Ratepayer Protection Act leaves the immediate operating burden with data center developers and utilities: any facility at or above 100MW would need to show how generation, transmission and connection costs are funded before ratepayers are asked to absorb them.