Senators are likely exploring whether to pass legislation that would help combat price increases that they say cause average Americans to struggle to keep the lights on. They’ve asked tech companies to respond to their biggest questions about data center projects by January 12, 2026.
Among their top questions, senators wanted to know about firms’ internal projections looking forward with data center projects. That includes sharing their projected energy use through 2030, as well as the “impact of your AI data centers on regional utility costs.” Companies are also expected to explain how “internal projections of data center energy consumption” justify any “opposition to the creation of a distinct data center rate class.”
Additionally, senators asked firms to outline steps they’ve taken to prevent passing on costs to neighbors and details of any impact studies companies have conducted.
Likely to raise the most eyebrows, however, would be answers to questions about “tax deductions or other financial incentives” tech firms have received from city and state governments. Those numbers would be interesting to compare with other information senators demanded that companies share, detailing how much they’ve spent on lobbying and advocacy for data centers. Senators appear keen to know how much tech companies are paying to avoid covering a proportionate amount of infrastructure costs.
“To protect consumers, data centers must pay a greater share of the costs upfront for future energy usage and updates to the electrical grid provided specifically to accommodate data centers’ energy needs,” senators wrote.
Requiring upfront payment is especially critical, senators noted, since some tech firms have abandoned data center projects, leaving local customers to bear the costs of infrastructure changes without utility companies ever generating any revenue. Communities must also consider that AI firms’ projected energy demand could severely dip if enterprise demand for AI falls short of expectations, AI capabilities “plateau” and trigger widespread indifference, AI companies shift strategies “away from scaling computer power,” or chip companies “find innovative ways to make AI more energy-efficient.”
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“If data centers end up providing less business to the utility companies than anticipated, consumers could be left with massive electricity bills as utility companies recoup billions in new infrastructure costs, with nothing to show for it,” senators wrote.
Already, Utah, Oregon, and Ohio have passed laws “creating a separate class of utility customer for data centers which includes basic financial safeguards such as upfront payments and longer contract length,” senators noted, and Virginia is notably weighing a similar law.
At least one study, The New York Times noted, suggested that data centers may have recently helped reduce electricity costs by spreading the costs of upgrades over more customers, but those outcomes varied by state and could not account for future AI demand.
“It remains unclear whether broader, sustained load growth will increase long-run average costs and prices,” Lawrence Berkeley National Laboratory researchers concluded. “In some cases, spikes in load growth can result in significant, near-term retail price increase.”
Until companies prove they’re paying their fair share, senators expect electricity bills to keep climbing, particularly in vulnerable areas. That will likely only increase pressure for regulators to intervene, the director of the Electricity Law Initiative at the Harvard Law School Environmental and Energy Law Program, Ari Peskoe, suggested in September.
“The utility business model is all about spreading costs of system expansion to everyone, because we all benefit from a reliable, robust electricity system,” Peskoe said. “But when it’s a single consumer that is using so much energy—basically that of an entire city—and when that new city happens to be owned by the wealthiest corporations in the world, I think it’s time to look at the fundamental assumptions of utility regulation and make sure that these facilities are really paying for all of the infrastructure costs to connect them to the system and to power them.”
