A bipartisan group of House lawmakers is backing legislation aimed at preventing American households and small businesses from footing the bill for the power infrastructure needed to support the country's rapidly expanding AI data center industry. The Ratepayer Protection Act (H.R. 9340), sponsored by Representative Gabe Evans, a Colorado Republican, would require states to consider rules ensuring that large data centers pay the full cost of new electricity generation, transmission and distribution upgrades needed to serve their facilities rather than passing those costs on to utility customers. The measure has emerged as one of the most closely watched AI-related energy bills in Congress as electricity demand surges alongside the artificial intelligence boom.
The debate over who should pay for AI infrastructure is becoming a major political issue as utilities forecast sharp increases in electricity demand from data centers powering AI models, cloud computing platforms and other digital services. Supporters of the legislation argue that consumers should not subsidize the energy needs of some of the world's largest technology companies. The bill would require utilities to recover the full incremental cost of infrastructure upgrades from large-load customers, defined in the legislation as data center facilities with peak electricity demand of 100 megawatts or more.
Backers say the proposal would allow the U.S. to continue expanding AI infrastructure while protecting consumers from higher utility bills. Critics of data center expansion have increasingly warned that the industry's growing power needs could drive up electricity costs for households if utilities spread those infrastructure expenses across their rate base. The issue gained additional attention after a House committee unanimously approved the bill, reflecting broad bipartisan concern about the impact of AI-related electricity demand on ratepayers.
The House Energy and Commerce Committee advanced H.R. 9340 by a unanimous 52-0 vote on July 21, 2026, sending the legislation to the full House for consideration. The House vote is scheduled for Tuesday night at 5 p.m. If approved by the House, the bill would still need Senate passage and President Donald Trump's signature before becoming law.
There are a total of 42 cosponsors, including 35 Republicans and 7 Democrats, plus sponsor Gabe Evans. Contact Newsweek editors on this story: Jason Lemon and Gray R.
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