May 31, 2026 - Washington, D.C. – In case you missed it, U.S. Senator Adam Schiff (D- Calif.) introduced legislation earlier this month to ensure that Americans do not have to pay the price for the expansion of data centers throughout the country and their accompanying rising energy costs. This legislation will mandate private companies to pay for the energy they consume and the cost of critical grid infrastructure upgrades to protect against blackouts, as well as require them to turn down their power consumption during grid stress periods.
The introduction of the Energy Cost Fairness and Reliability Actcomes as a massive increase in energy usage is leaving Americans with rapidly rising electricity rates due to the demand for new energy infrastructure.
Read more about the bill here and see coverage below:
Bloomberg Government: Schiff Proposes Bill Requiring Data Centers to Pay for Own Power
A Senate Democrat is proposing a bill that would require large data centers to secure their own power in a bid to reduce energy costs.
Dubbed the Energy Cost Fairness and Reliability Act, Sen. Adam Schiff‘s (D-Calif.) bill is the latest effort in Congress to tackle energy affordability as Americans decry high electricity costs and power-hungry artificial intelligence data centers.
The bill requires data centers that are over 50 megawatts to bring their own power, a common call among Democrats and Republicans amid national pushback against data centers. President Donald Trump received pledges in March from large technology companies that they would secure their own electricity for data centers and pay for grid upgrades.
A spokesperson in Schiff’s office said the bill intends to enforce the pledge through a law change. The bill doesn’t have any GOP co-sponsors, though a spokesperson said they’re having conversations with other lawmakers to drum up support for the proposal.
“Artificial intelligence is already deeply impacting our society, economy, and national security, and it is critical that we maintain our international leadership—however that growth cannot come at the cost of consumers or society,” Schiff said in a statement.
Data centers must pay for the grid upgrades they require and can’t siphon power from existing power plants, according to the bill. It also directs the Federal Energy Regulatory Commission to update its rules related to transmission lines — which transport electricity — to allow data centers to reduce demand during peak energy hours.
Energy affordability is shaping up as a major topic in the November midterm elections as Democrats use sky-rocketing energy bills in their pleas to voters.
Politico: E&E News: Schiff enters data center fray with ratepayer protection bill
California Democratic Sen. Adam Schiff is entering the hotly contested political debate over data centers with legislation he says would ensure artificial intelligence developers pay the full cost of their energy demand, instead of ratepayers.
The “Energy Cost Fairness and Reliability Act” is the latest in a growing list of proposals from both Democratic and Republican lawmakers aimed at mitigating the electricity price impacts of energy-hungry data centers.
“Artificial intelligence is already deeply impacting our society, economy and national security, and it is critical that we maintain our international leadership — however, that growth cannot come at the cost of consumers or society,” Schiff said in a statement. “There need to be guardrails that protect Americans’ pocketbooks.”
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Schiff’s office is branding the proposal as the “strongest and most comprehensive data center energy consumption accountability” legislation introduced in the Senate to date, according to a press release.
The bill would create a new national interconnection queue, administered by the Federal Energy Regulatory Commission, specifically for data centers and other large electricity users seeking to hook up to the grid. To qualify, developers would have to meet several major requirements.
Among them is effectively a “bring your own power” mandate, forcing developers to work with grid operators to build or secure new electricity resources sufficient to match the data center’s projected demand.
Data centers would be required to maintain a flexible demand profile, meaning they could reduce or increase electricity usage at the request of grid operators. The provision is intended to prevent facilities from overburdening the grid during periods of peak demand or reliability shortfalls.
The legislation would also direct FERC to establish a rule requiring data center developers to pay 100 percent of the costs for any network upgrades — such as new transmission lines or transformers — needed to serve their projects.
Additional provisions would require regulators to ensure utilities are not shifting those grid upgrade costs onto ratepayers and would prohibit data centers from relying on existing grid generation capacity to meet new demand.
Large technology companies have signaled openness to working with federal lawmakers on measures designed to protect ratepayers from bearing energy costs.
“We’re seeing congressional legislation, and we are actively working on those efforts to try and codify what has been the case, which is the commitment of our members to pay their full cost of service,” Levi said. “The challenging dynamic is ensuring that the regulatory structures are in place for us to continue to do that.”
Amazon, Google, Meta and Microsoft, along with other technology companies, have signed the White House’s ratepayer protection pledge committing to cover the full energy, infrastructure and delivery costs associated with their operations. Schiff, however, argues that agreement lacks enforcement mechanisms.
Among other proposals on data center energy use, Sen. Josh Hawley (R-Mo.) has a bill with Sen. Richard Blumenthal (D-Conn.) to force data centers to find independent power sources.
House Energy and Commerce lawmakers discussed the draft “Ratepayer Protection Act” during a hearing last month. It would amend the Public Utility Regulatory Policies Act of 1978 to require large electricity users to cover the full cost of the infrastructure needed to serve them.
Spectrum News: California Senator proposes legislation to force data centers to bring their own energy
A California senator is introducing legislation to shield utility customers from footing the bill for power grid upgrades required to power the growing number of electricity-guzzling data centers.
Democratic Sen. Adam Schiff said his proposed Energy Cost Fairness and Reliability Act i the strongest and most comprehensive data center energy consumption accountability legislation that’s been introduced in the Senate to date.
Schiff, in a video released on YouTube Monday, said the surging number of data centers to power the boom in artificial intelligence is putting an unsustainable strain on the electric grid and taxpayer wallets.
“They’re being built all over the country, and they’re massive. META, Facebook, they’re building data centers, one of which is the size of all of Manhattan. That’s right, [META CEO Mark] Zuckerberg is talking about one data center the size of all of the island of Manhattan. That’s extraordinary,” said Schiff. “Those new data centers, they’re relying many of them on the same energy that’s in your grid. Which means there’s a lot more competition for energy, which means the prices go up.”
Schiff’s bill, in addition to requiring data centers to foot the bill for grid updates, would require a Federal Energy Regulatory Commission policy update to allow companies to reduce their demand peak hours to reduce blackouts or brownouts, in addition to “bringing their own power.” That could include a power purchase agreement with a nearby power plant or the creation of a new generating facility, according to sources familiar with the legislation.
“The concern of rising utility bills is widespread. It’s not just on the left or the right or on the center. It’s certainly pervasive,” said Schiff, while also acknowledging that passing the legislation will likely not be easy, particularly as he introduces the bill on his own.
“What are the chances for the passage of my bill or a bill like it? Very difficult to say, but I will say this: the problem is big, it is broad, and it is recognized in a bipartisan way,” he said. “People on both sides of the aisle are hearing from their constituents who don’t want to and can’t afford increased utility bills.”
Democrats are using rising energy costs as a battle cry to rally voters in this year’s elections after President Donald Trump won the White House in 2024 on an affordability agenda. Schiff and other members of his party are hoping that voters will remember the president has not lowered costs of their average household goods during his second term.
Nexstar: Lawmakers express concerns that data centers will raise electric bills
(DC BUREAU) – As data centers pop up across the US to meet the growing energy demands of AI, some in Washington are concerned they’re driving up your electricity bills.
“I am introducing legislation to try to make sure that it’s the data centers that bear the cost,” Sen. Adam Schiff (D-CA) said in a video shared by his office Monday.
Sen. Schiff’s new “Energy Cost Fairness and Reliability Act” requires data centers to bring their own energy.
“We’ve got to incentivize these data centers not to rely on the same energy sources that you or I are relying on,” Schiff said.
Director of Harvard’s Electricity Law Initiative Ari Peskoe says he thinks the idea is generally feasible, as data centers have experience procuring their own power, but notes there could be other obstacles.
“[There are] a lot of state laws that protect utility monopolies and require new customers, whether it’s a resident or a new business, to buy all of their electricity from their local utility,” Peskoe said.
The bill also says the centers have to pay for their own grid upgrades and dial down demand during peak windows.
The idea has some support from the White House. Earlier this year President Trump said he was working with tech companies to make sure Americans don’t “pick up the tab” for their power consumption.
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Schiff says it’s hard to say how likely it is his bill passes but knows lawmakers from both parties are hearing from concerned constituents. His bill currently doesn’t have cosponsors, but his office says they’re actively working to build support.
“The problem is big, it is broad, and it is recognized in a bipartisan way,” Schiff said.
ABC 10: Sen. Adam Schiff pushes bill targeting electricity costs tied to growing data centers
Gray: So ever since its invention, people have been wondering how to responsibly use AI. Now, companies are trying to answer how to power the technology, and it’s causing problems for dozens of communities, including thousands of residents living in and around the Lake Tahoe Basin. Liberty Utilities, which supplies power to the area says that starting in 2028 they’ll no longer be able to receive electricity from its current supplier, NV Energy. It comes as data centers begin to pop up across Northern Nevada, and while both companies tell us the data centers have nothing to do with the upcoming change, there is a federal push forming to tackle how data centers do eat up electricity.
Schiff (in clip): By some estimates, costs of electricity have gone up 267% for residents in areas with data centers. We have an old grid, and bringing that up to the capabilities necessary to accommodate such a massive increase in demand is costly. And the question is, who’s going to bear the cost?
Gray: So, the California Senator now pushing for a bill that, if passed, requires data centers be responsible for the energy they do use up.
ABC: Mega Utility Merger Amid Rising Electric Bills
Flay: Thanks to the artificial intelligence boom and demand for data centers, America needs more power than ever. Now, a mega utility merger is being proposed that could affect millions of customers, from Florida to Virginia, creating the world’s largest regulated utility. In a $67 billion deal, NextEra Energy plans to acquire Dominion Energy. It comes as Americans pay more for electricity. Rates are up more than 7% in the last year. But they’ve jumped more than 12% in states like Virginia, where Dominion is headquartered. It’s home to the biggest concentration of data centers in the U.S. The rate hikes getting the attention of lawmakers.
Schiff (in clip): By some estimates, costs of electricity have gone up 267% for residents in areas with data centers. We have an old grid, and bringing that up to the capabilities necessary to accommodate such a massive increase in demand is costly. And the question is, who’s going to bear the cost?
Flay: President Trump recently got tech companies to pledge to pay for infrastructure upgrades to protect customers. Democratic Senator Adam Schiff claims that doesn’t go far enough. He’s proposing a new bill.
Schiff (in clip): What the bill would do is it would say to data centers, bring your own energy and make sure that when there are changes in the grid that are necessary, that you pay for those changes.
Source: Senator Adam Schiff