Senate Democrats block House-passed data center bill aimed at addressing energy costs

Washington — Senate Democrats on Wednesday blocked a GOP-led effort to advance a bill aimed at shielding Americans from energy costs attributed to data centers, despite the bill securing widespread bipartisan support in the House earlier this month.

In a 57 to 43 vote, all but four Democrats — Sens. Maggie Hassan of New Hampshire, Amy Klobuchar of Minnesota and Jon Ossoff and Raphael Warnock of Georgia — opposed the measure, arguing that the bill would make the protections for Americans "optional."

"While Americans are demanding real guardrails on AI and data centers, Republicans are offering a toothless messaging bill," Senate Minority Leader Chuck Schumer 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."

The outcome denies Republicans a legislative victory just weeks before the midterm elections. Voters across the U.S. have become increasingly opposed to the construction of data centers, which provide the computing power needed to fuel the AI boom. But Republicans argued that the vote would put Democrats on the record on the issue that has gained traction in recent months.

The bill, titled the Ratepayer Protection Act, seeks to put the costs of new energy infrastructure used for data centers on companies, rather than passing costs on to consumers. But it would only require state utility regulators to consider standards to hold companies responsible for the costs, which Senate Democrats argue doesn't go far enough.

The measure passed the House earlier this month in a 417 to 3 vote.

Asked about House Democrats' support for the measure, and why Senate Democrats aren't on the same page, Schumer said "we don't vote for frauds."

Schumer stressed that the measure sets up a voluntary system, saying, "Not a single company has to comply with it." He argued that if Republicans wanted a real solution, including GOP Sen. Jon Husted, who has led the push in the Senate, they should take up legislation put forward by one of his Democratic colleagues "that is real and has teeth."

"They want it optional, which means zero," Schumer said. "We want it mandatory."

Husted is locked in a competitive Senate race in Ohio against former Sen. Sherrod Brown, and has faced scrutiny for his previous support for data centers. The Senate GOP campaign arm warned in a memo last month that more than anything else, the data center issue is the "anchor hanging around Husted's neck."

Earlier this month, Husted sought to approve the same bill under unanimous consent, which gives any single lawmaker the power to block its passage. But Sen. Martin Heinrich of New Mexico, the top Democrat on the Senate Energy and Natural Resources Committee, proposed that the Senate instead pass his own bill that he said is "what is needed to start to bring down energy prices." Ohio's other senator objected to Heinrich's bill. 

Wednesday's vote came as senators are preparing to leave town this week and hit the campaign trail. Senate Republicans teed up the vote alongside an effort to pass legislation to limit congressional stock trading, which Democrats also blocked. 

Speaking on the floor ahead of the vote on the data center legislation, Heinrich said "this is nothing more than a messaging bill on the eve of an election."

"Congress needs to pass a law with real teeth," he added.