← Back to today's stories

Bipartisan Push to Make Data Centers Pay Their Own Energy Costs Gains Momentum in Congress

FEDERAL Data Centers / Utility Regulation April 15, 2026 Source: Axios, ForeignAffairs.co.nz

At an Axios Live event, bipartisan lawmakers and the Trump administration's National Energy Dominance Council agreed that data center operators — not residential ratepayers — should bear the cost of their electricity demand. “The people who need the energy need to pay for the energy,” said Rep. Julie Fedorchak (R-N.D.). Rep. Jennifer McClellan (D-Va.) said data centers must pay “their fair share.” Peter Lake, senior director of power for the Energy Dominance Council, said cloud companies must “build, bring or buy” their own electricity generation.

The same day, Reps. Kweisi Mfume (D-MD) and Paul Tonko (D-NY) introduced the Power for the People Act, with a Senate companion from Sen. Chris Van Hollen (D-MD). The bill would direct FERC to ensure data centers pay for local transmission upgrades, create a data center load queue prioritizing facilities that bring their own generation and battery storage, and improve load forecasting. Fifteen House members and seven senators have signed on.

A separate bipartisan Senate bill from Sens. Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) would require data centers to use generation sources separate from the grid.

Community Takeaway

The bipartisan consensus that data centers should pay their own way is notable, but federal legislation moves slowly. The Power for the People Act's load queue concept — prioritizing data centers that bring their own power and storage — could reshape how projects are evaluated locally. Communities negotiating with data center developers can point to this emerging federal framework as justification for requiring dedicated power sources and ratepayer protections in local agreements. In the meantime, large-load tariffs at the state level ([see Colorado and Wyoming stories from April 14 →]) remain the most proven mechanism available.

Source: Axios, ForeignAffairs.co.nz, April 15, 2026.

Get alerts for your state

We'll email you when there's a story about energy or data center development near you.