Senate Democrats blocked a bill on Wednesday meant to shield households from energy costs tied to data centers, denying Republicans a win ahead of the midterm elections.
The Ratepayer Protection Act, sponsored by Sen. Jon Husted (R-OH), fell three votes short of the 60 needed to overcome a filibuster and begin debate. All but four Democrats opposed the measure, despite the overwhelming support it received in the House earlier this month. The Democrats who voted in favor were Sens. Maggie Hassan (NH), Amy Klobuchar (MN), Jon Ossoff (GA), and Raphael Warnock (GA).
The outcome marks a setback for Husted, a vulnerable incumbent who has been relentlessly pummeled by his Democratic opponent, former Ohio Sen. Sherrod Brown, over the issue. In Ohio and nationally, candidates have distanced themselves from data center construction while accusing their challengers of supporting it in the past.
The bill would require state regulators to consider standards for new data centers and hyperscalers that consume over 100 megawatts of electricity to cover the costs of new generation, transmission, and infrastructure upgrades.
However, Democrats have argued the measure is toothless because it does not set a federal standard and is voluntary.
Sen. Martin Heinrich (D-NM) said Wednesday on X that “The Ratepayer Protection Act is exactly what Congress is known for: all message and no substance.”
“It’s not enough for us to tell states to consider making data centers pay for grid upgrades. If voluntary worked, we wouldn’t need legislation,” he added. “I want Congress to pass legislation with real teeth. Until then, I’m a NO on this bill.”
Husted last week attempted to pass the bill under unanimous consent, but Heinrich objected to the measure. Heinrich, at the time, argued that a better solution would be his own bill, the GRID Savings Act, which would require large-load users to pay for their grid upgrades.
The Ratepayer Protection Act passed earlier this month in the House, sponsored by Reps. Gabe Evans (R-CO) and Kathy Castor (D-FL).
In response to the criticism that the bill lacks a federal mandate, Evans told the Washington Examiner earlier this month that “there is a federal directive in there, which is ‘thou shall not pass on costs to consumers.’”
“There’s different grids, different environmental considerations, different citing considerations, different land use,” Evans said. “You have 50 states and thousands of local communities, and so we want states and local communities to be able to bring their own unique flavor to ‘how thou shalt not pass on cost to consumers.’”
Some lawmakers have called for more to be done on data center development. Rep. Rashida Tlaib (D-MI), Rep. Frank Pallone (D-NJ), Rep. Alexandria Ocasio-Cortez (D-NY), and Sen. Bernie Sanders (I-VT) have called for a moratorium on construction. Sanders and Ocasio-Cortez introduced a bill in March to pause new data center development while lawmakers work on artificial intelligence regulations.
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Evans dismissed that approach, arguing that bans could push data center construction offshore.
“Just because something doesn’t get built in the United States doesn’t mean it doesn’t get built at all,” he said. “We have to strike the right balance.”