Ohio Congressman Introduces Federal Bill to Make Data Centers Pay Grid Costs
Democratic Rep. Greg Landsman files federal legislation requiring data centers to pay for their own power grid infrastructure after President Trump’s voluntary pledge falls short.
COLUMBUS, OHIO — Democratic U.S. Representative Greg Landsman has introduced federal legislation requiring data centers to cover the costs of new energy infrastructure needed to support their operations on the power grid.
The No Harm Data Center Act would mandate data center operators pay for their impact on electrical systems, ban elected officials from signing nondisclosure agreements with these facilities, and require comprehensive environmental impact studies.
Federal Action Needed
Landsman said he believes Congress must act because state-level efforts in Ohio may not succeed. “I don’t think anyone has any real faith that there’s going to be movement on this in Ohio,” he said. “If there is, that’s great. Either way, you need a federal framework for managing these data centers and protecting communities.”
The legislation comes as Ohio lawmakers are pursuing similar changes at the state level, but Landsman argues the issue extends far beyond state borders.
Response to Presidential Promise
President Trump recently announced during his State of the Union address that he had secured a “ratepayer protection pledge” from major technology companies. “We’re telling the major tech companies that they have the obligation to provide for their own power needs,” Trump said. “They can build their own power plants as part of their factory, so that no one’s prices will go up.”
However, Landsman contends voluntary commitments are insufficient. “You’re either with Big Tech or with our towns,” he said in a release. “A handshake and a promise from these tech companies is not enough. That’s why we’re leading the data center effort to make sure they pay, and that they negotiate their deals in public – no more NDAs.”
Regulatory Concerns
The proposed legislation would significantly expand federal regulators’ authority over utility rate-setting for data centers. Ohio’s consumer watchdog has expressed concerns that increased federal involvement could make it more difficult for average ratepayers to have their voices heard in the regulatory process.
The bill represents a growing national conversation about how to balance the economic benefits of data center development with protecting consumers from increased utility costs. Data centers require substantial electrical infrastructure to operate their servers and cooling systems.
According to the legislation filed with Congress, the measure aims to ensure communities are not burdened with infrastructure costs generated by private data center operations while maintaining transparency in negotiations between local governments and technology companies.
