Congress Passes Bill Protecting Ratepayers. Some Lawmakers Question If It’s Enough

Lawmakers are continuing to debate how to address constituents’ growing concerns over large-load data centers, with bipartisan proposals emerging to address its impact on ratepayers and power grids.

Texas has become a flashpoint in the data center debate. This week, Gov. Greg Abbott (R-TX) directed the Texas Water Development Board to enforce water-use reporting requirements and impose penalties on data centers that fail to comply.

“Data centers must share the duty to protect Texas water,” Gov. Abbott said. “The Texas Water Code requires a complete and accurate water use survey. I direct the Texas Water Development Board to use its enforcement authority to penalize past failures and to impose legal consequences for any future failure to comply.”

Over on Capitol Hill, the House of Representatives passed the Ratepayer Protection Act this week to contractually ensure data centers pay for the additional costs of the grid upgrades needed to power them.

However, not all members of Congress are convinced this is enough to protect communities from the impacts of data centers.

Representatives Kristen McDonald Rivet (D-MI) and Don Davis (D-NC) are rallying lawmakers to push back on the tax breaks for big tech companies that build large-scale data centers. Although meant to incentivize these companies to invest in new infrastructure, Reps. McDonald Rivet and Davis argue the incentives miss the mark.

“Washington is giving handouts to big tech companies while Americans are drowning,” Rep. McDonald Rivet said. “These are backward priorities.”

The two lawmakers also introduced legislation to repeal these tax breaks and redirect the savings toward American families. The bill already has 20 members from both parties supporting it, they said.

With rising gas prices, grocery bills and utilities, Rep. McDonald Rivet said these tax breaks should be going to American families instead.

“The American people should not foot the bill for data center construction,” Rep. McDonald Rivet said.