WASHINGTON D.C. — U.S. Rep. Greg Landsman, D-Ohio, has introduced legislation aimed at making data center companies pay their full share of the costs tied to the massive energy infrastructure needed to power their operations.
The proposal, called the No Harm Data Center Act, would prohibit utility regulators from allowing data center-related energy costs to be shifted onto regular ratepayers. Landsman said the measure is needed to protect families and small businesses from rising electric bills caused by the rapid expansion of energy-hungry data facilities across the country.
“Big tech companies are building these massive data centers, and if we don’t set clear rules, the costs for that infrastructure get passed down to everyone else,” Landsman said in a statement. “That’s not fair to working families or small businesses.”
Data centers have surged in recent years as demand for cloud computing and artificial intelligence applications accelerates. While states like Ohio have welcomed the industry’s investment and job creation, many utilities have warned that energy demands from these facilities can strain grids and require costly new generation and transmission projects.
Under Landsman’s bill, utility commissions would be barred from approving rate increases that shift such infrastructure costs to non-commercial users. The measure also directs the Federal Energy Regulatory Commission to examine how data center growth affects national energy reliability and pricing.
Environmental groups and consumer advocates have applauded efforts to place stricter limits on who pays for industrial-scale electricity use, while industry associations have urged federal and state governments to balance environmental and consumer protections with continued technological growth.
Landsman, who represents Cincinnati and its suburbs, said the legislation is part of a broader push to ensure that major technology companies “contribute their fair share” to local infrastructure and community costs.
The No Harm Data Center Act is expected to be referred to the House Energy and Commerce Committee for consideration.