Senate bill would make data centers pay their own grid upgrade costs

What does this do?

Senate bill S 3682 would require data centers to pay for power infrastructure upgrades themselves rather than passing those costs to other ratepayers. The bill would direct the Federal Energy Regulatory Commission to create a load queue that data centers must enter before connecting to the grid. Data centers that bring clean energy, accept power cuts during emergencies, and pay fair wages to construction workers would move up in that queue.

Who does it affect?

Data center owners and operators would face new costs and requirements before connecting to the grid. Households and small businesses that pay electric bills could be affected by whether infrastructure costs are shifted away from them, and construction workers are affected through labor and apprenticeship requirements tied to data center projects.

Why does it matter?

Currently, when a large data center connects to the electric grid, infrastructure upgrade costs are often spread across all electricity customers in the area. The bill aims to change who bears those costs, which could alter how utilities and states structure electricity rates and contracts going forward.

What does it cost, and who pays?

• Data centers pay own upgrade costs
• Larger upfront deposits required
• Federal grants offered to states