Sen. Adam Schiff, D-Calif., is leading new congressional efforts to require data center owners to provide their own energy to combat rising energy costs and the increasing risk of grid blackouts.
The Energy Cost Fairness and Reliability Act would enable the Federal Energy Regulatory Commission (FERC) and transmission providers to allow data centers to reduce their demand during peak energy consumption periods and redirect excess energy they generate back onto the grid for others to use.
It would also direct the Department of Energy’s (DOE) national laboratories to collect data and analyze energy use patterns that would steer recommendations submitted to Congress on reducing energy consumption.
Other elements of the bill include requiring data centers to be flexible with their energy demand and prioritize projects using battery storage systems; requiring data centers to be responsible for all grid network upgrades needed to power them; blocking data centers from using existing power supplies serving the public; and updating grid forecasting and the application process for grid interconnection.
Schiff’s legislation falls amid national concern over rising energy costs. According to Bloomberg, electricity costs have risen as much as 267% for residents living near data centers compared to five years ago. In Virginia, home to more data centers than any other state, the Electric Power Research Institute estimated data centers could consume up to 50% of the state’s electricity by 2030.
On a national scale, the DOE warned Congress last year that by 2030, half of all new American electrical power will be consumed by data centers.
“That is just completely unsustainable and unacceptable,” Schiff said in a video posted to X. “Part of the problem is … [that data centers are] using the same grid, the same transmission, the same electrical infrastructure that you are, and that needs to be massively improved and built.”
Schiff’s proposal is not the first attempt to address the costs of data centers. Multiple bipartisan bills have been introduced over the 119th Congress to combat rising prices and strained grids. However, while the issue is a bipartisan one, Democrats and Republicans have remained divided over how exactly to solve it.
President Donald Trump’s proposal to address rising costs came in the form of a ratepayer protection pledge signed by the CEOs of Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI. Under that pledge, companies agreed to negotiate dedicated power-rate deals with utilities and state governments, and to pay for the electricity and supporting infrastructure to power their data centers.
So far, that pledge has resulted in the development of new energy infrastructure in Ohio to support planned data centers in the area.
In his video, Schiff said that while the Trump administration has been looking to build more energy infrastructure, the administration has favored those reliant on oil, which has also risen in price due to the ongoing war with Iran.
“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 that is people on both sides of the aisle are hearing from their constituents who don’t want to and can’t afford increased utility bills,” Schiff said.
“This, of course, is coming at the worst possible time, when … they’re paying so much more at the pump, so gas prices are up, heated fuel prices are up, and with data centers, electricity prices are up,” Schiff added.
The Trump administration has also pointed to nuclear energy as a promising source of power for data centers and other electricity needs of the future. DOE has invested millions into the development of small modular reactors, which it said could provide substantial power.