Sponsors (2)
The bill aims to protect residential ratepayers and strengthen grid planning by imposing certification, Rate Effect Credit, reporting, and disclosure rules for large data centers, trading clearer rules and transparency for increased compliance costs, potential investment deterrence, centralized DOE discretion, and some privacy/security risks.
Homeowners and renters are protected from utility rate increases because the bill requires Secretary approval and Rate Effect Credit mechanisms to prevent data‑center projects from raising residential rates.
Utilities, grid planners, and local communities gain improved grid reliability and planning because the bill encourages on‑site/captive power for large data centers and requires better multi‑year usage reporting.
Local and state governments, taxpayers, and the public get greater transparency and accountability through required disclosures of incentives, financial ties, and Rate Effect Credits for data‑center deals.
Large data‑center developers, utilities, and covered entities face substantial new compliance obligations (Rate Effect Credits, certification, multi‑year reporting) that increase costs and administrative burdens.
Communities and workers risk lost investment and jobs because higher compliance costs and stricter approvals could delay, block, or discourage new data‑center projects.
Homeowners, renters, and taxpayers could still bear higher costs if off‑grid/captive generation (encouraged by the bill) is more expensive and those costs are effectively socialized via Rate Effect Credits or other arrangements.
Based on analysis of 5 sections of legislative text.
Introduced February 11, 2026 by Joshua David Hawley · Last progress February 11, 2026
Prohibits most new large data centers from taking power from the electric grid starting 180 days after enactment unless they use only off-grid sources (including backup power). Existing grid-connected centers may continue for up to 10 years if they obtain annual certificates from the Secretary of Energy showing they will not raise residential electrical rates, or if they pay credits or other financial arrangements to offset rate impacts. The Secretary must also issue public-disclosure rules within 90 days requiring covered entities and utilities to report projected and recent utility usage and to disclose real-estate transactions and any subsidies or incentives tied to data-center projects. Violations carry civil penalties of at least $1,000,000 per day.