An Amazon Web Services data center is seen on August 26, in Stone Ridge, Virginia.
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Senate Democrats on Wednesday blocked a GOP-led bill to combat rising energy costs driven by the data center boom, thwarting a last-ditch effort by Republicans to show they are taking voter concerns about affordability seriously.
Even though the bill only recommends states take action and does not mandate lower prices for consumers, the bill’s failure deprives Republicans of an opportunity to counter attacks that they haven’t done enough to tackle high prices ahead of the midterms. It deals a setback to one vulnerable Republican senator in particular: Ohio’s Jon Husted, who led the charge for passage of the bill after being hammered on the issue in his race, one of the most competitive Senate battlegrounds.
Now, senators are expected to soon leave Washington and not return until after the midterms as a number of Senate Republicans have expressed concern that their party has not done enough to address the high cost of living in the run-up to a critical election where control of Congress is at stake.
The vote also opens Democrats up to criticism for blocking the bill, which passed the House earlier this month with widespread bipartisan support.
The measure — known as the “Ratepayer Protection Act” — was blocked on a 57 to 43 vote with only four Democrats voting with Republicans.
Senate Democrats said ahead of the vote that they opposed the bill because it did not go far enough. The bill requires state regulators to “consider” adopting a proposed federal standard that would require data center companies to cover their costs to the energy grid, rather than passing it off to consumers. Democrats said the language was weak and lacked enforcement mechanisms.
“Here we need some real action on data centers and what does the Republican senator from Ohio come up with? Something that is optional,” Senate Minority Leader Chuck Schumer said on the floor Tuesday, as Democrats vowed to seek passage of more robust measures.
The vote, in the Senate’s final days in Washington before the midterms, highlights the fight between both parties as they scramble to show voters they’re better equipped to tackle the high cost of living. It also comes as the expansion of data centers powered by AI has sparked concern among Americans.
Republicans criticized Democrats ahead of the vote for their opposition, saying this was the best chance to take action on the issue.
“This is the bill that gives us a chance to prove to the American people that we’re for lower electricity prices and holding data centers accountable. So the only way that this happen is if this bill passes,” Husted said. “This bill is the only game in town.”
But Democrats brushed off concerns the optics of their opposition could backfire.
“If ratepayers read this (bill) and see that it’s a name that says ratepayer protection and provides no relief in rates, they’ll rightly be angry. They can see something that’s not on the level,” said Sen. Peter Welch of Vermont. “You know, I think voters see this for what it is: as kind of a political maneuver at the 11th hour.”
Husted had taken on the mission of passing the bill amid a critical and highly competitive Senate race as Republicans fight to retain their Senate majority.
Data centers have become a flashpoint in his race against Democrat and former Sen. Sherrod Brown, as communities in the Buckeye state have experienced firsthand the rapid development of AI processing facilities. In his role as lieutenant governor and as a senator, Husted has applauded the economic boom that the centers can bring but has also pushed to approve the “Ratepayer Protection Act” as a way to attempt to neutralize potential backlash.
It was Husted who pushed party leaders to return to Washington this week to vote on the bill after leaders had weighed an early exit ahead of the midterms. Multipleome early without at least attempting the vote to send a message that Republicans were doing something on the issue of affordability
Back in Ohio, Brown has cut several ads attacking Husted on the centers. And in August, Senate Republicans’ campaign committee, the National Republican Senatorial Committee, sent an internal memo warning “more than any other thing in this race, data centers are the anchor hanging around Husted’s neck.”
“This has become a sleeper issue for the entire cycle,” the NRSC wrote.
Husted’s campaign spokesperson Amy Natoce accused Democrats of playing politics by blocking the bill.
“The House overwhelmingly passed Sen. Husted’s bipartisan legislation requiring data center companies to pay for the power they use, but Senate Democrats blocked it. Sherrod Brown and his friends would rather play politics and stick Ohio families with higher electric bills than pass a commonsense solution,” she said.
In a statement, Lauren Chou, a Brown campaign spokesperson, said, “Jon Husted led the charge to bring data centers to Ohio, forcing Ohioans to pay thousands more in higher electric bills and giving giant out-of-state corporations billions of dollars in out-of-control tax breaks.”
“Ohioans should get to decide if data centers are built in their communities and should never be forced to subsidize the electricity costs of big corporations,” Chou said.
Still, in the Senate’s last days of work, some Republicans have suggested that the party could be doing more to tackle affordability.
“My view is that people would love some relief in the price of their gas. They would love some relief in the price of their health care. They would love some rights vis a vis these data centers. If it were me, I’d make those thing priorities,” Missouri Republican Sen. Josh Hawley said.
Sen. John Kennedy, a Republican from Louisiana, bemoaned that the party is facing economic headwinds amid the fight to keep the House and Senate in the midterms.
“I mean you don’t have to be a senior at Cal Tech to understand that people are angry about the cost of living, and they’re confused about Iran and the two are inextricably linked,” Kennedy said last week.
