Who Pays for Data Center Power?

Lawmakers at both state and federal levels have intensified scrutiny of how large data centers are charged for electricity, as lawmakers and regulators seek to prevent ordinary customers from bearing the costs of new grid investments. In December 2025, Senators Elizabeth Warren, Chris Van Hollen and Richard Blumenthal opened an investigation asking major technology firms for details about their energy deals and projected power use. While some companies have pledged to avoid increasing local household bills, others have defended the confidentiality of commercial contracts.

At the state level, Oregon’s POWER Act (House Bill 3546) establishes a distinct customer class for sites that draw more than 20 megawatts and requires new large-load contracts to include a minimum ten-year purchase commitment so that utilities can allocate infrastructure costs to those who benefit. In Michigan, environmental groups have argued that the state’s guidance on tax exemptions weakens a statutory requirement that enterprise data centers procure 90% clean energy to qualify for breaks.

Technical studies have underscored the stakes. Berkeley Lab reported that data centers consumed about 4.4% of U.S. electricity in 2023 and projected a range of 6.7% to 12% by 2028, while industry analysts have forecasted substantial global growth through 2030. Consequently, regulators are weighing rate redesigns, mandatory contracts and stricter clean energy conditions to reconcile rapid data center expansion with household affordability and climate goals.

Some technology firms have sought long-term clean energy deals and on-site power options to lessen grid stress; for example, major firms have signed agreements to buy nuclear or other firm power to support AI facilities. These corporate actions have been presented as ways to limit pressure on local electricity systems, but regulators still face the task of designing rules that ensure those commitments translate into durable benefits for nearby residents.