{"id":3745384,"date":"2026-05-19T14:36:58","date_gmt":"2026-05-19T18:36:58","guid":{"rendered":"https:\/\/www.pymnts.com\/?post_type=cpi_posts&#038;p=3745384"},"modified":"2026-05-19T14:36:58","modified_gmt":"2026-05-19T18:36:58","slug":"senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades","status":"publish","type":"cpi_posts","link":"https:\/\/www.pymnts.com\/cpi-posts\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\/","title":{"rendered":"Senate Bill Would Force Data Centers to Pay Full Cost of Power-Grid Upgrades"},"content":{"rendered":"<p class=\"p1\">Sen.\u00a0Adam Schiff\u00a0(D-CA) has introduced legislation that would require large electricity users such as AI data centers to pay the full cost of power grid upgrades needed to support their operations, marking one of the most aggressive federal responses yet to growing public concerns over the impact of the AI infrastructure boom on energy prices and grid reliability.<\/p><div\r\n\tid=\"article-paywall-overlay\"\r\n\tclass=\"d-none\"\r\n>\r\n\t<div id=\"article-paywall-content\" class=\"my-4\">\r\n\t\t\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2699550-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2699550\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/wp-json\/wp\/v2\/cpi_posts\/3745384#wpcf7-f2699550-o1\" method=\"post\" class=\"wpcf7-form init pymnts-article-paywall-form\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2699550\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2699550-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input 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you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our <a class=\"fw-bold\" href=\"https:\/\/pymnts-com-develop.go-vip.net\/privacy-policy\/\">Privacy Policy<\/a> and <a class=\"fw-bold\" href=\"https:\/\/pymnts-com-develop.go-vip.net\/terms-conditions\/\">Terms and Conditions<\/a>.\n\t\t\t\t<\/p>\n\t\t\t\t<p><input id='hiddenPath' type='hidden' name='path' value='' \/><input type='hidden' name='userDeviceId' id='userDeviceId' \/><input type='hidden' name='pageTitle' id='pageTitle' \/>\n\t\t\t\t<\/p>\n\t\t\t<\/div>\n\t\t\t<div class=\"col-12\">\n\t\t\t\t<div id='formButtonRow' class='container mt-1 px-0'>\n\t\t\t\t\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner btn btn-dark text-uppercase py-2 px-5 small\" id=\"theSubmitButton\" type=\"submit\" value=\"Submit\" \/>\n\t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div><input type=\"hidden\" name=\"post_id\" value=\"3745384\" \/><input type=\"hidden\" name=\"source\" value=\"https:\/\/www.pymnts.com\/cpi-posts\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\/\" \/><p style=\"display: none !important;\" class=\"akismet-fields-container\" data-prefix=\"_wpcf7_ak_\"><label>&#916;<textarea name=\"_wpcf7_ak_hp_textarea\" cols=\"45\" rows=\"8\" maxlength=\"100\"><\/textarea><\/label><input type=\"hidden\" id=\"ak_js_1\" name=\"_wpcf7_ak_js\" value=\"108\"\/><script>document.getElementById( \"ak_js_1\" ).setAttribute( \"value\", ( new Date() ).getTime() );<\/script><\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\r\n\t<\/div>\r\n<\/div>\r\n<div id=\"article-paywall-hidden-content\">\r\n\t\n<p class=\"p1\">The proposed \u201c<a href=\"https:\/\/www.schiff.senate.gov\/wp-content\/uploads\/2026\/05\/PAT26381.pdf\"><span class=\"s1\">Energy Cost Fairness and Reliability Act of 2026<\/span><\/a>\u201d comes amid mounting backlash from communities, consumer advocates and state officials over the rapid expansion of hyperscale data centers and their enormous electricity demands. Critics increasingly argue that ordinary ratepayers are being forced to subsidize infrastructure built primarily to support artificial intelligence systems operated by some of the world\u2019s largest technology companies.<\/p>\n<p class=\"p1\">In a <a href=\"https:\/\/www.schiff.senate.gov\/news\/press-releases\/news-sen-schiff-unveils-major-legislation-to-ensure-fair-and-affordable-energy-costs-for-americans-amid-data-center-buildouts\/\"><span class=\"s1\">press release announcing the bill<\/span><\/a>, Schiff said the measure is intended to ensure that \u201chard-working Americans should not be left to foot the tab for rising energy costs\u201d caused by the data center buildout.<\/p>\n<p class=\"p1\">\u201cOur nation is witnessing a generational increase in energy demand with the buildout of data centers,\u201d Schiff said in a statement. \u201cMy Energy Cost Fairness and Reliability Act would protect ratepayers from rising costs by ensuring that companies are paying their fair share for their energy use and implementing critical modernizations to ensure we can protect against blackouts.\u201d<\/p>\n<p class=\"p1\">The legislation would apply to facilities with peak electricity demand exceeding 50 megawatts, a category that includes many hyperscale AI and cloud computing data centers. Under the proposal, such facilities would be required to cover 100% of the costs associated with transmission upgrades, interconnection studies and related network infrastructure needed to connect them to the grid. Utilities and transmission operators would be barred from passing those costs along to residential or business customers through future rate increases.<\/p>\n<p class=\"p1\">The bill would also direct the\u00a0Federal Energy Regulatory Commission\u00a0(FERC) to establish a formal \u201cload interconnection queue\u201d process modeled after the existing system used for new power plants seeking grid connections. Large-load customers would be required to pay all interconnection study expenses and network upgrade costs on a nonrefundable basis.<\/p>\n<p><strong>Read more: <a class=\"link-dark h5 fw-bold\" title=\"Coalition of 60+ Groups Urge N.J. Governor to Pause Data Center Construction\" href=\"https:\/\/www.pymnts.com\/cpi-posts\/coalition-of-60-groups-urge-n-j-governor-to-pause-data-center-construction\/\" rel=\"bookmark\">Coalition of 60+ Groups Urge N.J. Governor to Pause Data Center Construction<\/a><\/strong><\/p>\n<p class=\"p1\">The measure goes beyond cost allocation. It would require energy-intensive facilities to demonstrate \u201cdemand flexibility,\u201d allowing grid operators to reduce or shift data center power consumption during periods of grid stress or high demand. The proposal also would encourage projects paired with battery storage and require operators to secure sufficient generating resources to meet their own energy needs.<\/p>\n<p class=\"p1\">Additional provisions would permit data centers to use non-firm transmission service, allowing operators to curtail electricity usage during peak demand periods and send excess self-generated power back to the grid. The bill would also prohibit large-load facilities from diverting electricity from existing power plants already serving consumers.<\/p>\n<p class=\"p1\">The legislation arrives as local and state resistance to large data center developments continues to intensify across the country. Communities in states including Michigan, New Jersey, Virginia and elsewhere have raised concerns over electricity demand, water usage, land consumption and rising utility bills tied to AI infrastructure expansion. Utilities in several regions have already sought major rate increases linked in part to anticipated grid investments needed to support new data center capacity.<\/p>\n<p class=\"p1\">At the same time, many major technology companies are increasingly pursuing dedicated energy strategies to support AI operations. According to <a href=\"https:\/\/www.consumeraffairs.com\/news\/senate-bill-would-make-ai-data-centers-pay-for-power-grid-upgrades-051926.html\"><span class=\"s1\">a Consumer Affairs report<\/span><\/a>, companies including\u00a0Microsoft,\u00a0Amazon,\u00a0Google\u00a0and\u00a0Meta\u00a0are investing in or partnering on nuclear, natural gas and other energy generation projects to secure long-term electricity supplies for their data center operations.<\/p>\n<p class=\"p1\">Schiff argued the legislation seeks to balance continued U.S. leadership in artificial intelligence with growing public concern over who bears the cost of powering that expansion.<\/p>\n<p class=\"p1\">\u201cArtificial Intelligence is already deeply impacting our society, economy, and national security, and it is critical that we maintain our international leadership,\u201d Schiff said. \u201cHowever, that growth cannot come at the cost of consumers or society. There needs to be guardrails that protect Americans\u2019 pocketbooks.\u201d<\/p>\n\r\n<\/div>\r\n<script>\r\n\twindow.pymntsAllowedArticleCount = 1;\r\n\twindow.pymntsPostID = 3745384;\r\n<\/script>","protected":false},"featured_media":3402597,"template":"","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":"","pymnts_footnotes":""},"cpi_category":[81221],"cpi_tag":[163003,140415,168655],"class_list":["post-3745384","cpi_posts","type-cpi_posts","status-publish","has-post-thumbnail","hentry","cpi_category-in-the-news","cpi_tag-data-centers","cpi_tag-pymnts-dt","cpi_tag-yechreg"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Bill Would Force Data Centers to Pay for Power-Grid Upgrades<\/title>\n<meta name=\"description\" content=\"Sen.\u00a0Adam Schiff\u00a0has introduced legislation that would require high-energy AI data centers to pay the full cost of power grid upgrades.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pymnts.com\/cpi-posts\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Senate Bill Would Force Data Centers to Pay Full Cost of Power-Grid Upgrades | PYMNTS.com\" \/>\n<meta property=\"og:description\" content=\"Sen.\u00a0Adam Schiff\u00a0(D-CA) has introduced legislation that would require large electricity users such as AI data centers to pay the full cost of power grid\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pymnts.com\/cpi-posts\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\/\" \/>\n<meta property=\"og:site_name\" content=\"PYMNTS.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/pymnts\/\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.pymnts.com\/wp-content\/uploads\/2026\/01\/AI-artificial-intelligence.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@pymnts\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.pymnts.com\\\/cpi-posts\\\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\\\/\",\"url\":\"https:\\\/\\\/www.pymnts.com\\\/cpi-posts\\\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\\\/\",\"name\":\"Bill Would Force Data Centers to Pay for Power-Grid Upgrades\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.pymnts.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.pymnts.com\\\/cpi-posts\\\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.pymnts.com\\\/cpi-posts\\\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.pymnts.com\\\/wp-content\\\/uploads\\\/2026\\\/01\\\/AI-artificial-intelligence.jpeg\",\"datePublished\":\"2026-05-19T18:36:58+00:00\",\"description\":\"Sen.\u00a0Adam Schiff\u00a0has introduced legislation that would require high-energy AI data centers to pay the full cost of power grid upgrades.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.pymnts.com\\\/cpi-posts\\\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.pymnts.com\\\/cpi-posts\\\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.pymnts.com\\\/cpi-posts\\\/senate-bill-would-force-data-centers-to-pay-full-cost-of-power-grid-upgrades\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.pymnts.com\\\/wp-content\\\/uploads\\\/2026\\\/01\\\/AI-artificial-intelligence.jpeg\",\"contentUrl\":\"https:\\\/\\\/www.pymnts.com\\\/wp-content\\\/uploads\\\/2026\\\/01\\\/AI-artificial-intelligence.jpeg\",\"width\":1200,\"height\":720,\"caption\":\"AI infrastructure. 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