WASHINGTON (WDNews) — A proposed federal law could affect how Alabama regulators handle the electricity costs created by large new data centers.
U.S. Sen. Tommy Tuberville of Alabama is co-sponsoring the Ratepayer Protection Act. Supporters say the bill is intended to keep Alabama families and small businesses from paying for power infrastructure built to serve large technology companies.
The proposal would apply to data centers and other facilities requiring at least 100 megawatts of electricity. It would direct state utility regulators, including those in Alabama, to consider standards requiring those companies to cover the cost of additional power generation, transmission lines and other grid improvements.
Utilities could also establish long-term payment agreements with large electricity customers. Those agreements are intended to protect existing customers if a data center reduces operations or leaves after new infrastructure has been built.
The bill would not guarantee that Alabama power bills will not increase. Instead, it would require state regulators to consider protections aimed at preventing data center-related costs from being passed to households and local businesses.
The U.S. House passed a companion bill Wednesday, Sept. 16, by a 417-3 vote. The Senate version must also pass before the legislation can be sent to the president.
The measure follows a voluntary pledge announced by President Donald Trump’s administration calling on technology companies to pay the energy and infrastructure costs associated with their new data centers.
