Sponsors (2)
The bill strengthens federal oversight, transparency, and grid protections to limit data centers' impact on rates and reliability, but does so by imposing new federal requirements, penalties, and disclosure rules that raise costs, regulatory uncertainty, and potential environmental and local-control trade‑offs.
Household and small-business electricity customers: the bill creates a Rate Effect Credit and prioritizes residential ratepayers in reviews to limit data-center-driven electric rate increases and protect monthly bills.
Utilities, grid planners, and state/local governments: the bill clarifies which facilities count as large data centers, treats data-center construction and power as interstate commerce, and improves visibility into planned demand—helping federal/state coordination, cross‑state transmission planning, and overall grid resilience.
Local governments and taxpayers: the bill increases transparency by requiring disclosure of subsidies, acquisitions, and utility agreements so communities can see who benefits from incentives and how projects may affect rates.
Data-center operators, utilities, and consumers: the bill expands federal obligations (Rate Effect Credits, reporting, and siting/energy rules) that will raise compliance costs and could increase prices or slow data-center investment nationwide.
Data-center operators and utilities: the bill imposes extremely large penalties (at least $1,000,000 per day) for violations, creating acute financial risk that could force closures, litigation, or service disruptions.
Local and state governments and permitting authorities: by treating data-center siting/energy as interstate commerce and expanding federal authority, the bill could preempt or reduce local control over land use and permitting decisions.
Based on analysis of 5 sections of legislative text.
Requires new private data centers (≥20 MW) to use only off‑grid energy; existing centers may continue with annual certificates or payments to offset utility rate impacts and must disclose detailed energy and contract information.
Introduced February 11, 2026 by Joshua David Hawley · Last progress February 11, 2026
Requires private data centers with electrical demand of 20 MW or more to obtain all energy (including backup) from off‑grid sources for new facilities, while existing grid‑connected centers may continue operating only if they obtain annual certificates showing they do not raise utility rates for ratepayers (or pay credits/offsets). It also creates public disclosure rules for covered entities and utilities about energy use, contracts, subsidies, and utility service arrangements, gives the Secretary of Energy authority to issue certificates and regulations, and imposes steep civil penalties for violations.