Chuck Schumer Orders Democrats to Block Bill That Aims to Force Data Centers to Cover Increased Energy Costs

Senate Democrats are opposing a bill called the Ratepayer Protection Act, which passed overwhelmingly in the House to help lower energy costs for data centers. The bill aims to ensure that data centers pay for their energy use and infrastructure costs, possibly reducing costs for consumers. Despite its strong support in the House (417-3 vote), Senate Minority Leader Chuck Schumer and other Democrats oppose it, criticizing it as ineffective and accusing Republicans of using it as messaging. Some Democrats have changed their positions, with Senator Peter Welch stating he no longer supports the bill due to its perceived lack of enforcement. The bill requires 60 Senate votes to pass, needing Democratic support to succeed. Republicans argue the bill would protect consumers and promote American leadership in AI and technology advancement, while Democrats contend it doesn’t sufficiently address their concerns about regulation and cost. The debate reflects broader tensions over infrastructure, energy costs, and economic competitiveness related to data center growth and AI dominance.




Senate Democrats are working to short-circuit a bill aimed at protecting consumers from the costs of data centers.

The Ratepayer Protection Act passed the House 417-3 in the 435-member House.

However, Senate Minority Leader Chuck Schumer opposes the bill, which he called “a fraud,” according to The Hill.

“Americans are demanding real guardrails on AI and data centers, but all the Republicans offer is a toothless messaging bill,” he said Tuesday.

The bill requires 60 votes to pass a procedural hurdle. Although Republicans have a majority in the Senate, it would take Democratic votes to move the bill forward.

Democratic Sen. Peter Welch of Vermont, who had been the lone Democrat supporting the bill, said he has changed his mind.

“We want to get a real Ratepayer Protection Act,” he said. “I’m for ratepayer protections. This bill doesn’t do anything.”

The bill introduced by Republican Sen. Jon Husted of Ohio requires states to consider imposing a regulatory structure in which data centers pay for energy costs and any power grid updates.

The bill does not require states to impose costs on data centers, leading Democratic Sen. Gary Peters to snark, “I wish it actually had some teeth.”

After House passage of the bill, Republicans noted that it effectively insulated consumers from the costs of data centers.

“When done responsibly, data center development leads to longer term investments and broader infrastructure improvements in the communities where they’re built,” Republican Rep. Brett Guthrie of Kentucky said. “The Ratepayer Protection Act helps to safeguard these benefits by ensuring that the companies who are building data centers — and not American families and small businesses — are paying for the electricity they use.”

“U.S. leadership in the race to AI dominance is critical to our economic prosperity and national security, so we need to keep building the needed infrastructure with appropriate accountability measures,” he added. “I’m grateful to Congressman Evans for his tireless work — on a bipartisan basis — to protect ratepayers while ensuring that America continues to lead the world in innovation,” he said.


Republican Rep. Gabe Evans of Colorado said, “Hardworking families should not have to subsidize the energy demands of data centers. America needs the infrastructure to lead the world in AI and outcompete Communist China, but we cannot have that growth at the expense of hardworking families, farmers, seniors, and small businesses.

“My bipartisan Ratepayer Protection Act ensures large data centers pay for the infrastructure they require while giving states the flexibility to determine what works best for their communities. I’m incredibly proud to lead the charge on this pivotal issue, ensure our ratepayers are protected, and keep American innovation moving forward,” he said.

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