House votes to curb AI data center costs

The House passed the bipartisan Ratepayer Protection Act on Wednesday, marking Congress' most significant step yet to shield consumers from the soaring infrastructure costs of the AI boom. Why it matters: Washington is facing growing pressure to put guardrails around AI's rapid expansion, from the technology itself to the data centers powering it. The bipartisan bill, which passed 417-3, would require state utility regulators to consider rules making data centers cover some of the costs of new power generation. Its passage gives lawmakers a tangible response to an issue that has quickly become a political flashpoint ahead of the midterms. Driving the news: The vote comes amid a broader reckoning over the pace and costs of AI development. Last weekend, leaders of some of the world's most powerful AI companies called for slowing the development of frontier AI models to give safety measures time to catch up. Data centers have become a focus of anti-AI sentiment, with 70% of Americans opposing construction in their area. Lawmakers in both parties have backed efforts to slow or restrict data center development amid concerns about electricity bills, strained power grids and water use. Catch up quick: The bill, led by Reps. Gabe Evans (R-Colo.) and Kathy Castor (D-Fla.), advanced out of the House Energy and Commerce Committee in July. GOP leadership had been previously non-committal about bringing it to the floor. The intrigue: The House's move comes as President Trump is arguing against pumping the brakes on AI development, framing U.S. dominance in the technology as a race against China. The only control or "guardrails" that AI needs is a STRONG AND SMART (High IQ!) PRESIDENT, and the U.S.A. has that, in spades!" the president posted Monday on Truth Social. Trump has also aggressively defended data center development amid growing local backlash, saying in an Aug. 31 Truth Social post that communities that reject the facilities will be "backwards and poor." "If they want to be successful and rich, with far lower taxes and jobs all over the place, let Data Reign," Trump wrote. What to watch: Trump's comments have put him at odds with some Republicans who have sought to distance themselves from data centers as the issue becomes increasingly salient in the midterms.

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