Senate Democrats have blocked a Republican-led data centre bill intended to prevent consumers from bearing the cost of energy infrastructure built to support the artificial intelligence boom.
The Ratepayer Protection Act was rejected by 57 votes to 43 on Wednesday, despite having passed the House earlier this month by 417 votes to three. Four Democrats – Maggie Hassan of New Hampshire, Amy Klobuchar of Minnesota, and Georgia senators Jon Ossoff and Raphael Warnock – supported the measure.
The bill would require state utility regulators to consider standards making data centre companies responsible for the cost of new energy infrastructure, rather than passing those costs to households. Democrats argued that the proposal would not compel regulators or companies to take action.
Senate minority leader Chuck Schumer called the legislation an “optional” measure that offered Americans no meaningful protection.
“While Americans are demanding real guardrails on AI and data centers, Republicans are offering a toothless messaging bill,” he said. “We need real action on data centers, and what do Republicans decide all of a sudden to push forward? A bill that is totally optional.”
Mr Schumer said the legislation created a voluntary system under which “not a single company has to comply with it”. He added: “They want it optional, which means zero. We want it mandatory.”
Republicans argued that the vote would force Democrats to take a position on an issue that has become increasingly controversial as opposition to data centre construction has grown across the US. The result denied the party a legislative victory weeks before the midterm elections.
Ohio Republican Jon Husted has led the Senate push for the bill and is facing a competitive race against former senator Sherrod Brown. The Senate Republican campaign arm warned last month that the data centre issue was the “anchor hanging around Husted’s neck”, amid scrutiny of his previous support for such developments.
Mr Husted had earlier sought to pass the measure by unanimous consent, a procedure that allows one senator to block legislation. Martin Heinrich, the senior Democrat on the Senate Energy and Natural Resources Committee, objected and proposed an alternative bill that he said was needed to help reduce energy prices. Ohio’s other senator objected to Mr Heinrich’s proposal.
Speaking before Wednesday’s vote, Mr Heinrich described the Republican legislation as “nothing more than a messaging bill on the eve of an election”. He said: “Congress needs to pass a law with real teeth.”
Senators are due to leave Washington this week to campaign. Republicans also brought forward legislation seeking to limit congressional stock trading, but Democrats blocked that measure as well.
