TL/DR –
Senate Democrats blocked the Ratepayer Protection Act, a bill designed to limit consumer costs when new data centers are built. The bill, which had previously passed the House with a vote of 417-3, proposed a federal standard on the issue and called for state public utility commissions to ensure data center developers cover their own water and electricity costs. Those opposed to the bill, such as Senate Minority Leader Chuck Schumer, criticized it as “a fraud” and “optional” for states, arguing it was more of a partisan message than a substantial piece of legislation.
Senate Democrats Block Consumer Protection Legislation for Data Center Costs
The Senate Democrats have blocked the Ratepayer Protection Act, a legislation aimed at protecting consumers from escalated costs due to new data center constructions in local communities.
This vote fell short of the necessary 60 votes to overcome a filibuster, with a final tally of 57-43. The Act, which previously passed in the House of Representatives by a huge margin of 417-3, proposed a federal standard on cost protection for consumers.
Legislation proponent Sen. Jon Husted, R-Ohio, is facing a competitive battle for Senate term against Democratic rival Sherrod Brown, who has critiqued him as “the face of data centers” for promoting these developments previously as lieutenant governor.
Senate Minority Leader Chuck Schumer, D-N.Y., criticized the bill as a political tactic and “optional” for states, suggesting that it would not offer real protection to consumers regarding the costs of data centers.
Instead, Schumer advised Senate Republicans to consider bills by Sens. Chris Van Hollen and Martin Heinrich. These bills propose stricter rules on cost-impact of data centers.
Senate Majority Leader John Thune, R-S.D., refuted Schumer’s argument, pointing out the overwhelming Democratic support for the bill in the House.
An NBC News poll showed that voters are not in favor of local data center constructions, and they trust Democrats more than Republicans to handle data center issues.
Sen. Thom Tillis, R-N.C., acknowledged that the bill, while highlighting the cost issues, may not offer much beyond raising awareness.
“I think the best way to deal with this is through public utility commissions,” Tillis said, suggesting local and state decision-making as the optimal solution.
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