U.S. Congress Passes Data Center Energy Law

The U.S. House of Representatives passed a law requiring data centers to bear a larger share of electricity consumption costs, aimed at reducing the financial burden on American households caused by the increased energy demand from the growth of artificial intelligence applications. The rising electricity usage by data centers has led to a cost increase of approximately $9.3 billion over one year for the power grid that supplies about 67 million subscribers. The law includes the introduction of rules to ensure that data centers are funded for the costs of power plants and transmission lines, instead of passing these costs onto citizens—an initiative backed broadly by both parties. Data centers have become a point of controversy due to their water consumption, pollution, noise, and their use in election campaigns. Calls for tighter restrictions on the sector are increasing amid concerns over the impacts of artificial intelligence. The law will be forwarded to the Senate for review, with a strong push for it to be quickly ratified.

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