A bill sponsored by Ohio Senator Jon Husted, aimed at addressing voter concerns regarding data centers and their impact on energy costs, failed to advance in the Senate on Wednesday. The legislation, which had passed the House by an overwhelming 417-3 vote, garnered 57 votes in the Senate, falling short of the 60 votes required to proceed.
The bill proposed requiring utility regulators to consider adopting a federal standard that would charge large power customers a rate covering the cost of system upgrades needed to serve them. This initiative was intended to send a message to regulators to act on the growing concern over data centers' energy demands.
Senate Democrats, however, contended the bill was not robust enough. Senate Democratic Leader Chuck Schumer labeled the measure "a fraud, plain and simple," arguing that it merely offered a suggestion rather than a mandatory directive. Democrats have put forward competing proposals, with Senator Martin Heinrich (D-N.M.) sponsoring legislation that would mandate the Federal Energy Regulatory Commission to issue rules requiring large electricity customers to pay for necessary grid upgrades. Schumer emphasized the difference, stating, "They want it optional, which means zero. We want it mandatory."
Republicans, including Senator Husted, reserved one of the Senate’s final votes before recess for this bill, hoping to underscore efforts to address the impact data centers have on voters’ monthly energy bills. In advocating for his bill, Senator Husted told reporters, "You all know this is the only game in town." He asserted that passing the bill was the only way to demonstrate commitment to the American people on affordability before the midterm elections. Republicans sought to position Democrats as obstructionists for blocking progress on key voter concerns.
Data centers have emerged as a prominent campaign issue, particularly in Ohio, a state with closely contested races for governor and U.S. Senate. Senator Husted is currently in a tough reelection battle and has been identified in campaign advertisements by his Democratic challenger, former Senator Sherrod Brown, as the "face of data centers." While serving as lieutenant governor, Husted had promoted Ohio as a destination for these facilities. A recent memo from the National Republican Senatorial Committee warned that Husted is vulnerable to losing his seat due to the issue of data centers. The Ohio race is considered vital for determining control of the Senate, which helps explain the scrutiny and debate surrounding the data center bill despite its broad support in the House.
Voters nationwide have expressed growing apprehension regarding data centers. Approximately 6 out of 10 Americans, including majorities of both Democrats and Republicans, support limiting the number of new data centers. Furthermore, a majority of Americans are "extremely" or "very" concerned about the impact of data centers on electricity prices and water supply in host communities.
Before the Senate vote, Husted spoke on the floor, stating that the bill would compel states to address the issue of data centers independently covering their power costs and necessary grid improvements. He contended that by blocking the bill, Democrats would be demonstrating a lack of concern for affordability, urging lawmakers to "Let’s hold data centers accountable and let’s stop blocking a path to affordability."
Both the House and Senate are expected to be out of session for all of October, allowing members to focus on campaigning.
