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S3852119th CongressWALLET

GRID Act

Sponsored By: Senator Josh Hawley

Introduced

Summary

This bill would bar new large data centers from relying on the electric grid and would prioritize residential ratepayers when measuring and offsetting data-center impacts.

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  • Households: It forces regulators to prioritize residential ratepayers when deciding whether a data center can avoid raising local electric rates and allows credits or other offsets to be used to protect household bills.
  • New data center developers: It would prohibit building or operating data centers that draw power from the grid unless all energy comes from captive or on-site non‑grid sources. The rule targets centers with a power demand of 20 megawatts or more and sets civil penalties of at least $1 million per day for violations.
  • Existing data centers, utilities, and workers: Grid-connected centers could stay on-grid for up to 10 years if they win a yearly Zero Rate Effect Certificate after a Secretary of Energy review of grid impacts. The bill also requires public disclosure of utility use, leases, incentives, and any Rate Effect Credit deals, and it requires a project labor agreement for construction of power sources.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Disclosure rules and who is covered

Not later than 90 days after enactment, the Secretary would set national public-disclosure rules for data centers. Covered entities would have to report land purchases made to build or expand data centers and related transactions with sellers or government entities. Utilities and covered entities would have to disclose utility-service deals, any subsidies or credits, and an estimate of total savings and whether they are financially affiliated. New centers would publish utility-use estimates for year 1 and the next 5 years. Existing centers would publish current and next 5 year estimates and actual use for the prior 5 years. The bill would define a covered entity as a private company that owns or plans to own a data center within 5 years and would define covered data centers as private centers needing 20 megawatts or more.

New large data centers must be off-grid

This bill would bar covered entities from building or operating a new data center that draws power from the electric grid starting 180 days after enactment. All energy, including backup, would have to come from on-site or captive non-grid sources. New on-site power projects would have to follow emissions laws and use a project labor agreement. Violating the grid ban would carry civil penalties of at least $1,000,000 per day.

Zero Rate Effect certificate for existing centers

For 10 years after enactment, this bill would let existing large data centers stay on the grid only if they hold an annual Zero Rate Effect Certificate. Covered entities would apply to the Secretary, who would study many cost and grid metrics and must prioritize protecting residential ratepayers. The Secretary could accept Rate Effect Credits or other offset payments to prevent rate increases. Certificates last one year and can be renewed on application.

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Sponsors & CoSponsors

Sponsor

Josh Hawley

MO • R

Cosponsors

  • Richard Blumenthal

    CT • D

    Sponsored 2/11/2026

Roll Call Votes

No roll call votes available for this bill.

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