WASHINGTON — A single Democrat in the Senate stymied a bipartisan effort on Thursday aimed at requiring major tech firms to contribute to infrastructure necessary for large AI data centers.
Sen. Martin Heinrich (D-NM) opposed Sen. Jon Husted’s (R-Ohio) bid to expedite the Ratepayer Protection Act, which had just received overwhelming support in the House with a vote of 417-3.
This legislation seeks to ensure that states implement standards to prevent big electricity consumers from transferring the costs of expanding power grids onto regular utility customers.
Heinrich expressed concern that the proposal was inadequate. “The senator from Ohio and I are on the same page regarding AI data centers leading to higher expenses for American families, which they already experience in numerous areas,” he stated. “However, the Ratepayer Protection Act doesn’t meet the demands of the situation.”
Instead, Heinrich proposed his own measure, the GRID Savings Act, which would mandate that large electricity users, including data centers, cover the costs of the infrastructure needed to connect them to the grid. This plan also advocates for federal regulations on significant electrical connections.
Sen. Bernie Moreno (R-Ohio) subsequently rejected Heinrich’s proposal, leaving both initiatives in uncertain territory, while he accused Heinrich of obstructing efforts to provide “immediate relief” for Americans.
“There’s a reason the term do-nothing Congress is used,” Moreno remarked. “We’ve certainly achieved that today.”
This disagreement unfolded as lawmakers are wrestling with the political ramifications of AI and data centers ahead of the midterm elections in November.
Husted, who is running a challenging re-election campaign against former Democratic Sen. Sherrod Brown, has been under fire for his stances on data centers. The National Republican Senatorial Committee described this issue in a memo dated August 19 as a significant burden for Husted.
“If public opinion on data centers isn’t improved swiftly, the backlash will extend well beyond Ohio,” the memo noted, as initially reported by Politico.
The NRSC concluded, “While perceptions of data centers are negative, the American public supports us. By a wide margin, voters favor a Republican candidate who proposes that data centers can only be built in communities where local votes are taken and that bear their own costs for power, water, and utilities, over a Democrat who seeks to ban construction entirely, jeopardizing the U.S. position in the AI race against China.”
Husted defended the rejected bill on Thursday, labeling it “the most significant bipartisan effort Congress could undertake to shield the American populace from escalating energy costs.”
“It’s unfortunate that this opportunity has been lost today,” he added.
The Senate is expected to remain in session for the rest of this month before adjourning until after the midterms.
