The U.S. House of Representatives has passed H.R. 9340, a bill requiring data centers with a capacity of 100 megawatts or more to cover the full incremental costs of grid upgrades. This includes expenses for generation, transmission, and distribution infrastructure necessary to support their energy load, even if the customer terminates their utility contract.
The legislation aligns with the Ratepayer Protection Pledge, which aims to shift electricity costs away from residential users and small businesses. These groups have faced price hikes due to the high energy demands of AI data centers. The bill now requires approval from the Senate and the President before it can be enacted into law.
If the bill becomes law, individual state regulators will have the authority to decide whether to adopt the federal standard. States are granted a period of two years to make this determination. The measure follows earlier state-level initiatives, such as Oregon’s POWER Act of 2025 and Virginia’s 2026 mandate for data centers to fund infrastructure.
Oregon’s law, which applies to developments using over 20 megawatts, has already led to a 30% increase in electricity bills for data centers and a 1.3% reduction in costs for residential consumers. Virginia’s State Corporation Commission implemented similar requirements after the governor signed the Ratepayer Protection Pledge in July 2026.
