Who Pays for Data Center Power?

State and federal lawmakers have moved to make data centers pay more for electricity because the facilities are drawing large amounts of power and sometimes shifting infrastructure costs to households. Lawmakers have created or proposed new rules that aim to protect ratepayers, while utilities and tech companies have argued for confidentiality in contracts. The U.S. Senate has opened an investigation led by Senators Elizabeth Warren, Chris Van Hollen and Richard Blumenthal to ask firms for details about energy deals and projected power use.

In Oregon, the POWER Act (House Bill 3546) has created a new customer class for users above 20 megawatts and requires new data center contracts to last at least ten years so utilities can recover grid costs. In Michigan, environmental groups have challenged guidance they say weakens a law that requires enterprise data centers to procure 90% clean energy to qualify for tax breaks. These tensions have been intensified by growing projections: Berkeley Lab found data centers used about 4.4% of U.S. electricity in 2023 and estimated a rise by 2028. Therefore, policymakers are weighing higher rates, longer contracts and clearer clean energy rules.