- A bipartisan bill wants big tech companies to pay for the additional energy consumption and capacity driven by data centers and AI demand.
- Congress will begin considering the bill, before it advances
- Electricity prices have risen dramatically in the US, primarily due to an explosion in new data center construction projects.
A bipartisan bill is currently moving through Congress that seeks to force the big technology companies behind the massive construction of artificial intelligence data centers to pay for the energy they use.
Currently, the cost of energy is calculated by a combination of factors such as how much it costs to generate and transport energy, with additional charges added for plant and infrastructure maintenance, local regulations, and additional charges for capacity and demand.
That means those who live in areas with data centers connected to the local grid will have to bear the cost of the sudden increase in demand and capacity, even if they themselves are not using more energy. The Taxpayer Protection Law seeks to transfer that burden to technology companies.
Taxpayer Protection Law
The name may sound familiar, and that’s because the bill essentially seeks to codify parts of Trump’s Taxpayer Protection Pledge, the pledge that companies like Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI signed in March of this year. However, this commitment was only voluntary and lacked real details on exactly what signatories would pay.
The House of Representatives will now begin considering the bill, which seeks to introduce a “big load standard” that would force technology companies to bear the cost of the energy they use, along with upgrades to the local networks they connect to. The lead sponsors of the bipartisan bill are Reps. Gabe Evans, R-Colo., and Kathy Castor, D-Fla.
“Families and small businesses across the country should not be left to foot the bill for this new development, although the benefits of these innovations will be felt throughout society,” said House Energy and Commerce Chairman Brett Guthrie, R-Ky. “The Taxpayer Protection Act is a bipartisan effort, which would ensure that the costs of network upgrades are adequately paid for in line with demand.”
If you didn’t already know, there has been a national wave of opposition to data centers, with local grassroots movements and nationwide opposition groups successfully delaying and canceling data center construction projects. There have been a variety of motivations behind the opposition, from ecological conservation and energy prices, to fear of AI-influenced job losses and a modern resurgence of the Luddite movement.
The Taxpayer Protection Act is therefore a response to growing resentment experienced across the American political spectrum and represents one of the first attempts by Congress to force Big Tech to pay for the enormous increase in energy demand that the United States has experienced in recent years, driven primarily by demand for AI.
Speaking on behalf of his constituents, Evans, the bill’s sponsor, said, “Colorado families, farmers and small businesses should not be forced to cover the costs of new energy generation powered by these developments.”
After passing through Congress, the bill will need to be considered by the Energy and Commerce Committee, the House and the Senate before being signed into law by President Trump. It remains to be seen whether the bill will remain in effect during that time. But the bill comes at a crucial time in the U.S. election cycle, with the midterm elections just months away and data centers a serious consideration for any incumbent or hopeful candidate.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds.
