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119-hr-10809119th CongressWALLET

Make Data Centers Pay Act

Sponsored By: Representative Vindman, Eugene Simon [D-VA-7]

Introduced

Summary

This bill would prevent cross-subsidization of data-center electricity costs by requiring new data-center and high-density computing loads to pay the incremental costs of any new generation, transmission, or distribution needed to serve them and by requiring financial assurances up front.

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  • Families and other ratepayers: Protects other customers from bearing the incremental costs tied to new data-center loads so those costs are not spread across general bills.
  • Utilities and grid operators: Must accept credits for funds provided by covered loads and may recover the full incremental cost of serving those loads, including ongoing recovery if a contract ends.
  • Data center operators and developers: Would have to post financial assurances or contributions before construction or upgrades and cover incremental upgrade costs for covered loads at or above the 20 megawatt threshold.
  • State regulators and FERC: Keeps existing jurisdictional roles and limits the rules to new interconnections after enactment while preserving pre-enactment arrangements and agreements.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Data centers must pay added power costs

If enacted, the bill would require covered data-center loads that interconnect on or after enactment to pay the full incremental cost to serve them. The utility’s estimate of that incremental cost would be reviewed by the Federal Energy Regulatory Commission or the State, as appropriate. Other customers would not be charged a share of those incremental costs, and the covered load would still owe remaining costs if a contract ends early. A Commission or State could, under other law, allow charges above incremental cost and credit the excess back to other customers as a rebate or rate reduction.

Upfront payments for power upgrades

If enacted, the bill would let utilities require a covered load to provide financial assurances or contributions before building or upgrading generation, transmission, or distribution needed to serve that load. Any amounts the covered load already paid to a public utility or transmission organization for the same work would be credited. This requirement would fall on the covered data center or operator, not on ordinary households.

Which data centers count

If enacted, the bill would define a "covered load" as electricity for one or more data centers or high-density computing facilities that total 20 megawatts or more at a site or under common ownership. Phased developments would count if they are reasonably expected to reach 20 megawatts at full buildout. The bill would cover facilities whose primary purpose is housing computing, cloud, AI, data hosting, or cryptocurrency mining equipment. Equipment that is only ancillary to another business’s main activity would be excluded.

Sponsors & CoSponsors

Sponsor

Vindman, Eugene Simon [D-VA-7]

VA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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