House Passed Data Center Energy Cost Protection Act
New legislation prohibits shifting grid infrastructure expenses for AI data centers onto household electricity bills.
Updated on Sept. 26, 2026 in Data Centers
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The U.S. House of Representatives passed the Electric Bill Payer Protection Act on September 16, with a vote of 417 to 3. The bill mandates that state regulators require large data centers to cover their own power infrastructure costs instead of allocating them to residents.
Why it matters
Policymakers are attempting to balance national corporate competitiveness with the rising utility costs faced by the public, as large AI data centers now consume power volumes comparable to entire cities. This shift responds to a growing trend of consumers shouldering billions in grid investment costs.
In 2024, general consumers in seven U.S. states were allocated $4.4 billion in grid investment costs for data center-related projects. The legislation now mandates that these infrastructure expenses be borne by the large facilities themselves.
The players
Donald Trump
The President of the United States who discussed the legislative path of the bill with Senate leadership.
John Thune
The Senate Republican Leader who reviewed the legislation with the President.
KEPCO
The state-owned South Korean electric utility facing 210.7 trillion won in debt while managing grid load for major electronics manufacturers.
Samsung Electronics
A global semiconductor and electronics manufacturer currently being pressured to prepay for electricity grid expansion in South Korea.
SK Hynix
A leading memory semiconductor manufacturer involved in discussions regarding prepaid grid infrastructure funding in South Korea.
The details
The act functions by prohibiting the inclusion of localized power grid expansion costs—necessary to meet the intense electrical demand of AI infrastructure—in the rate base of residential consumers. Regulators are now empowered to enforce a cost-allocation framework that keeps these investments on the balance sheets of the data centers. This follows international developments, such as in South Korea, where KEPCO (the Korea Electric Power Corporation) has proposed that major tech firms like Samsung Electronics and SK Hynix prepay for grid construction to manage its own 210.7 trillion won debt.
Timeline
September 16, 2026: The U.S. House of Representatives passed the Electric Bill Payer Protection Act.
September 18, 2026: President Donald Trump discussed the bill with Senate Republican Leader John Thune.
The Tech Race
This legislation formalizes a departure from the historical utility precedent of socializing grid costs among all consumers, directly targeting the energy-intensity of current AI build-outs. It follows a global pattern of concern, such as in Ireland, where household energy costs are projected to rise to 644 euros after 2025 due to data center demand.
Residents across the United States may see a stabilization of grid-related utility fees as the burden of infrastructure expansion shifts from the public rate base to data center operators. The immediate effect depends on state-level implementation and how regulators enforce the new cost-allocation rules.
The takeaway
The bill signifies a pivot toward forcing AI infrastructure to internalize its own massive energy costs rather than offloading them onto the public. Observers should track the upcoming Senate deliberations and how individual state public utility commissions adjust their local rate structures to comply with this mandate.
Further reading
For broader context on how high-demand facilities are reshaping power grids, visit /tech/data-centers/.
Source note: This article includes information reported by 조선일보.
Live Poll
Should data centers be solely responsible for the costs of building their required power infrastructure?
