Bill would make big data centers pay their own grid connection costs

What does this do?

The bill directs FERC to write new rules for how facilities using more than 50 megawatts connect to the transmission grid. These large users would pay the full cost of connection studies and infrastructure upgrades, prove they can cut or shift power use during grid stress, and often arrange their own new power generation. It also creates faster approval for projects using battery backup, union-level wages, apprentice labor, or labor peace agreements, and has DOE collect data center energy and water use data.

Who does it affect?

Large technology and data center companies, electric utilities, grid operators, and state energy regulators are directly affected; everyday electricity customers are affected indirectly.

Why does it matter?

The changes aim to keep data center and AI infrastructure costs from being shifted onto regular households' electric bills, though states still control retail electricity rates.

What does it cost, and who pays?

• Large users pay full connection costs
• No cost-shifting to ratepayers
• States still set retail rates