WASHINGTON, D.C. – Today, Representatives Rob Menendez (NJ-08) and Greg Casar (TX-35) introduced the Preventing Rate Inflation in Consumer Energy (“PRICE”) Act and the Data Center Transparency Act, legislation to address skyrocketing energy bills and the environmental impacts of data centers built for artificial intelligence (“AI”) across the country. The bills would require data centers to generate their own renewable energy to reduce strain on the energy grid and require the Environmental Protection Agency and the Energy Information Administration to collect and update data on the environmental impacts and energy consumption of data centers.
“While AI innovation is promising, we must ensure that our constituents are not negatively impacted because of the industry’s continued growth,” said Congressman Menendez. “New Jersey families have seen their electricity bills increased by 20% because of the rapid growth of energy-intensive AI data centers. Our bills would protect Americans by requiring data centers to generate their own clean energy, transition to 100% renewable sources by 2040, and provide detailed, transparent reporting on their environmental footprint. Addressing the growing energy affordability crisis requires bold solutions, and that is what we are delivering with this legislation that puts working families first.”
“Families should not pay more for utilities so that billionaires can get rich off AI data centers,” said Congressman Casar. “With this bill, Congressman Menendez and I are saying clearly: AI data centers should not be allowed to jack up your electric bill or poison your environment.”
"Energy costs are too high," said Karim D. Marshall, Director of Climate and Energy Policy at the Consumer Federation of America. "Individual consumers should not be forced to pay corporate welfare through higher utility bills. Private-sector data centers should pay their own way and cover their energy costs. Disclosure is important and must be paired with meaningful action. These bills are a welcome and necessary first step in protecting the interests of everyday Americans and their ability to manage home energy costs."
“Customers can’t afford to foot the bill for AI data centers,” said Charles Harper, Senior Power Sector Lead at Evergreen Action. “Data centers need to bring their own cheap, clean electricity to the table so they don’t spike our power bills and bring pollution to our neighborhoods. We are already seeing historically high power bills—the PRICE Act is exactly the safeguard we need to ensure data centers are paying their fair share. With the Data Center Transparency Act, the public will finally know what is being built in their communities. Data centers require large amounts of electricity—and sometimes bring new sources of pollution to our air and waters. The public has a right to know.”
Electricity consumption in the United States hit a record high in 2024, with data centers accounting for more than 4 percent of total national electricity consumption. That figure is expected to continue to grow in coming years. Last year, the Independent Market Monitor for PJM, the largest grid operator in the country, found that data center load growth is the primary reason for higher energy prices in the PJM region. In New Jersey, families experienced an electricity bill hike of about 20 percent, despite having far fewer data centers than other states in the PJM region.
At the same time, the environmental impact of AI data centers is expected to grow alongside energy demands. Much of the electricity required to power data centers is likely to come from fossil fuels, increasing emissions, and in some instances, worsening air quality in neighboring communities. In addition, data centers use large amounts of water to keep the facilities cool, which has caused serious concerns about their impact on local water systems.
The PRICE Act would:
Require data centers to generate the electricity they consume;
Require that electricity generated by data centers be 75 percent renewable by 2035, and 100 percent renewable by 2040; and
Require compliance with data centers being subject to a civil penalty of up to $100,000 per day until a violation is rectified.
The Data Center Transparency Act would:
Require the Environmental Protection Agency to collect and update data every three months on the environmental impacts that data centers have on:
Water, including water consumption, utility costs, and potential pollutants;
Air pollution, including cumulative impacts on overburdened communities and greenhouse gases; and
Require the Energy Information Administration to collect and update data every six months on energy consumption of data centers, including total energy consumption of data centers and changes costs for household energy bills.
The PRICE Act has been endorsed by the Consumer Federation of America and Evergreen Action.
The Data Center Transparency Act has been endorsed by the National Consumers League.
Congressman Menendez serves on the House Energy and Commerce Committee’s Energy Subcommittee, where he has been a leader on addressing increasing utility costs and mitigating impacts on families in New Jersey and across the country. In addition to the Subcommittee on Energy, Menendez serves on the Subcommittee on the Environment and the Subcommittee on Communications and Technology.
To read the bill text for the PRICE Act, please click here.
To read the bill text for the Data Center Transparency Act, please click here.
