The Senate rejected a Republican-backed bill Wednesday aimed at addressing concerns over data centers and rising electricity costs, with the measure falling short of the 60 votes needed to advance.
Senators voted 57-43 against moving forward with the legislation, one of the final major votes before lawmakers leave Washington for the campaign trail. The bill had passed the House overwhelmingly, 417-3.
Sponsored by Sen. Jon Husted, R-Ohio, the legislation would require utility regulators to consider adopting a federal standard under which large electricity customers would pay rates covering the cost of grid upgrades needed to serve them.
Republicans argued that the measure would encourage regulators to ensure data centers pay their share of the infrastructure costs associated with their growing electricity demand. Democrats countered that the bill does not require regulators to take action and therefore would not provide sufficient protection for consumers.
“The bill is a fraud, plain and simple,” Senate Minority Leader Chuck Schumer, D-N.Y., said.
Democrats have proposed their own legislation on the issue. Sen. Martin Heinrich, D-N.M., has introduced a measure directing the Federal Energy Regulatory Commission to establish rules requiring large electricity customers to pay for necessary grid upgrades.
“They want it optional, which means zero. We want it mandatory,” Schumer said.
Husted has faced increased political scrutiny over data centers as he seeks reelection in Ohio. His Democratic opponent, former Sen. Sherrod Brown, has criticized him over the state's expansion of the industry, while Husted has argued that his legislation would help address concerns about who pays for the infrastructure needed to support the facilities.
“You all know this is the only game in town,” Husted told reporters before the vote. “This bill passing is the only way to get a chance to prove to the American people before the midterm elections whose side you're on.”
The debate comes as data centers expand rapidly across the country to support artificial intelligence and other high-demand computing services. Their electricity and water consumption has generated increasing concern among communities and policymakers.
Polling cited in the debate has found broad concern over the issue. About six in 10 Americans support limiting the number of new data centers, while majorities also say they are highly concerned about the facilities' potential effects on electricity prices and local water supplies.
Ohio has become a major data center hub, adding additional political pressure to the issue in the closely contested Senate race. Husted promoted Ohio as a destination for data center investment while serving as the state's lieutenant governor.
Senate Majority Leader John Thune, R-S.D., defended the legislation and the broader Republican effort, saying the bills being considered addressed issues Americans “care deeply about.”
The data center legislation failed to reach the 60-vote threshold needed to proceed, leaving the Senate without action on the proposal before lawmakers are expected to spend October away from Washington campaigning for the November 3 midterm elections.
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