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Congressman Paul Tonko is introducing new legislation aimed at protecting consumers from rising energy costs. The Power for the People Act, introduced by Tonko, who represents New York's 20th Congressional District, seeks to ensure that data centers are responsible for the high cost of their electricity demand. This legislation was introduced in the U.S. House on Tuesday (April 7) and has a companion bill in the Senate, introduced by Senator Chris Van Hollen.
Data centers, which are crucial for national security and economic development, have been rapidly expanding to meet the growing demand for artificial intelligence and other computing needs. However, their large electricity demand is straining the electric grid. According to Tonko's office, data centers account for 55% of new energy demand in the United States, and by 2030, they could represent 15% of national electricity consumption.
The Power for the People Act directs the Federal Energy Regulatory Commission (FERC) to ensure data centers pay for local transmission upgrades and requires electric grid operators to create a data center load queue. The bill also prioritizes data centers that bring their own power generation and battery storage systems, mitigate pollution, and create jobs. It supports efforts to improve accurate data center load forecasting.
The bill has garnered support from several House co-sponsors, including Representatives Kathy Castor, Steve Cohen, and Maxine Dexter, among others. Senate co-sponsors include Senators Angela Alsobrooks, Richard Blumenthal, and Cory Booker. Supporting organizations for the bill include the Natural Resources Defense Council (NRDC), the Sierra Club, and the Consumer Federation of America.
Tonko emphasized the importance of this legislation, noting that families are already paying higher prices for essentials like groceries and healthcare and should not have to bear the costs of companies building data centers. He stated, "Without proper backstops, new energy demand from data centers will lead to big profits for energy companies and big bills for electricity customers."
The legislation is expected to face discussions and potential amendments as it progresses through Congress.