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.