A bipartisan pair of US lawmakers has introduced legislation that would force large artificial intelligence data centers to pay the full cost of the power grid upgrades they require, shielding ordinary ratepayers from the soaring electricity bills that have accompanied the AI buildout.
The Ratepayer Protection Act, introduced by Representative Kathy Castor, a Florida Democrat, and Representative Gabe Evans, a Colorado Republican, is scheduled for markup this week in the House Energy and Commerce Energy Subcommittee. The measure directs state utility regulators to establish rules ensuring that large-load customers, defined as those with a capacity of 100 megawatts or more, pay for any generation, transmission, or other infrastructure needed to connect to the grid. For more context on this story, see our ongoing AI news.
What the Bill Would Do
Under the proposed legislation, hyperscale data centers, the vast facilities that train and run AI models, would no longer be able to spread the cost of new power plants and transmission lines across the broader customer base. Instead, they would be required to bear those costs directly.
The bill also includes a safeguard against what energy experts call "stranded costs." Large-load customers would have to provide financial assurances to cover upgrade expenses even if they later reduce their operations or disconnect from the grid entirely. That provision is designed to prevent utilities and ordinary ratepayers from being left to pay off infrastructure built for a data center that never materialized or was later abandoned.
"My neighbors across Florida are grappling with skyrocketing electric bills," Castor said in a statement. "Ratepayers should not have to subsidize wealthy corporations' growing energy demands, especially from AI data centers."
A Rare Bipartisan Push
The bill represents a striking area of bipartisan agreement at a time when AI policy has become politically fraught. Evans, the Republican co-sponsor, framed the measure as both pro-consumer and pro-innovation.
"Colorado families, farmers, and small businesses should not be forced to cover the costs of new power generation driven by these developments," Evans said. "The Ratepayer Protection Act is a bipartisan, commonsense solution that protects everyday Americans and ensures our nation can continue to win the AI race."
Representatives Brett Guthrie and Greg Latta are also listed among the lawmakers whose leadership the bill's supporters have credited.
Google Breaks Ranks to Back the Bill
In an unusual move, Google publicly endorsed the legislation, positioning itself as a responsible actor willing to pay its own way, a stance that implicitly puts pressure on competitors to do the same.
"Google has long been committed to ensuring that we pay our own way as we build the infrastructure to power American growth and leadership," the company said in a statement. "Thanks to the leadership of Representatives Evans, Castor, Guthrie, and Latta, the Ratepayer Protection Act is a positive step toward ensuring that all data center operators follow Google's lead and safeguard Americans from costs associated with development."
The endorsement is notable because it comes from one of the largest data center operators in the world, signaling that at least some tech giants see a competitive or reputational advantage in being seen as responsible power consumers.
States Are Already Moving
Federal action would build on a wave of state-level measures already in force. Last month, regulators in Oregon approved a new rate class for data centers and other large loads, which is now in effect. In Oklahoma, Governor Kevin Stitt signed a law aimed at protecting ratepayers from rising utility and infrastructure costs tied to data centers.
Florida's governor previously signed similar legislation prohibiting utilities from passing data center infrastructure costs on to residential and small-business customers. Ohio, North Carolina, and Virginia have also seen comparable rules proposed or enacted.
The patchwork of state rules has created an uneven landscape that the federal bill seeks to standardize, ensuring that the principle of cost responsibility applies regardless of where a facility is built.
The AI Energy Crunch
The legislation arrives as the energy demands of AI have become a central concern for utilities, regulators, and communities across the United States. The largest AI data centers now consume as much electricity as small cities, and the rapid expansion of facilities to train next-generation models has placed unprecedented strain on aging power grids.
Energy analysts estimate that data center electricity consumption in the United States could more than double over the next several years, driven primarily by AI workloads. That surge has prompted battles over everything from water usage and noise pollution to whether rural communities should host facilities that offer few local jobs but consume enormous amounts of power.
Earlier this month, a separate House subcommittee advanced related grid legislation, and public polling has shown that concern over data center energy costs cuts across party lines, giving the Ratepayer Protection Act unusual bipartisan momentum.
What Comes Next
The bill still faces a long road through Congress. After the subcommittee markup, it would need to pass the full Energy and Commerce Committee before reaching the House floor, and any final version would require Senate approval.
Still, the combination of bipartisan sponsorship, backing from a major tech company, and a growing state-level precedent suggests that some form of ratepayer protection for data center energy costs is likely to become law, whether through this bill or its successors. For the AI industry, the message is increasingly clear: the era of passing infrastructure costs to the public may be coming to an end.
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