Policymakers Grapple with Data Center Energy Costs

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As the data center boom continues, U.S. policymakers are being forced to rethink how to manage the growing energy demands and costs associated with these facilities. Bipartisan lawmakers agree that tech companies building out infrastructure to support artificial intelligence should be the ones paying for their own energy needs, rather than passing those costs on to consumers and other businesses.

Why it matters

Rising energy bills and local disruptions from the rapid expansion of data centers have become a political flashpoint ahead of the 2026 midterm elections. Policymakers are under pressure to ensure that consumers and other businesses are protected from having to shoulder the energy costs of the tech industry's growing power demands.

The details

At an Axios Live event on April 14, energy experts and bipartisan lawmakers discussed the need for data center operators to cover their own electricity costs. Rep. Julie Fedorchak (R-N.D.) stated that "the people who need the energy need to pay for the energy, and they're willing to do it." Rep. Jennifer McClellan (D-Va.) echoed this sentiment, saying "we need to make sure that data centers are paying their fair share of the energy demands that they produce, and not consumers or other businesses." A bipartisan bill from Sens. Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) aims to protect consumers by ensuring data centers use energy from generation sources separate from the grid, preventing costs from being passed on to ratepayers.

• The Axios Live event took place on April 14, 2026.
• The bipartisan bill from Sens. Hawley and Blumenthal is currently being considered by Congress.

What they’re saying

What’s next

The bipartisan bill from Sens. Hawley and Blumenthal will continue to be debated and considered by Congress, with the goal of ensuring data centers cover their own energy costs and protect consumers from rising electricity prices.