House Panel Backs $58 Billion Bill Amendment to Regulate Data Center Efficiency

2 articles · Updated · POLITICO · May 21

$58 billion in fiscal 2027 energy-water spending legislation advanced with a bipartisan amendment directing the Energy Department to begin evaluating data center regulation focused on energy and water efficiency.
The amendment reflects mounting pressure over AI-driven facilities that lawmakers say are pushing up electricity and water costs, with the department also tasked to assess risks to grid reliability, ratepayers and infrastructure.
Its scope is narrower than proposals for moratoriums or forcing data centers to secure independent power, but it marks one of Congress' first concrete bipartisan steps after months of mostly rhetorical concern.
The measure still must clear both chambers, where broader fights over energy policy, federal-state grid authority and the political clout of AI companies and utilities could limit how far regulation goes.

As data centers drive up utility costs, will new federal rules actually provide relief for household budgets?

Can the tech industry's soaring demand for power be met without sacrificing grid stability and environmental goals?