Congress next week may take up a controversial bill looking at the increased cost of data center construction projects and the issue of who should be paying for them.
As introduced earlier this summer by Colorado Republican Representative Gabe Evans, the Ratepayer Protection Act is designed to prevent residential utility customers from getting stuck with the bill paying for the added electricity needed to run data centers.
“Colorado families, farmers, and small businesses should not be forced to cover the costs of new power generation driven by these developments,” Evans remarked in introducing the legislation.
A press release from Evans’ office says that when data center developers don’t purchase the energy they may need for any given project, “utilities have to cover those costs in other ways, which many times pushes the costs to ratepayers.”
To prevent that cycle, the legislation will require state utility commissions to set up standards ensuring that when such centers are being developed, they must pay all costs associated with generation, transmission, and any distribution upgrades.
If finally passed by the full Congress, the legislation will amend the Public Utility Regulatory Policies Act of 1978.
Although the legislative proposal has passed the House Energy and Commerce Committee with a unanimous 52 to 0 vote, it is not without its detractors. The Data Center Coalition, the largest trade group representing data center companies, has said that the legislation will create a level of regulation that may inhibit new project growth.
In an interview with the publication Politico, Josh Levi, president of the coalition, said the legislation was unnecessary for the simple reason that “the data center industry remains committed to working with local officials, state and federal policymakers, and the Administration” in building new facilities. Meanwhile, California Democrat Representative Nanette Barragan has suggested that the legislative proposal is a good start, but so far only that. “We need to do more to ensure that families are protected from higher electricity costs while also addressing the health and environmental impacts,” Barragan told The Hill publication.
September 11, 2026
By Garry Boulard
Photo courtesy of Office of Gabe Evans
