The No Harm Data Centers Act mandates that large data centers cover the full costs of their grid infrastructure and energy consumption to prevent cost-shifting to residential and small business customers, while also requiring an assessment of their environmental and public health impacts.
Greg Landsman
Representative
OH-1
The No Harm Data Centers Act mandates that large data centers (exceeding 50 megawatts) bear the full financial burden of the grid upgrades and infrastructure expansion they require, protecting residential and small business customers from cost-shifting. The bill grants the Federal Energy Regulatory Commission (FERC) oversight of data center electricity rates and restricts the use of nondisclosure agreements regarding data center construction. Additionally, it requires a comprehensive study by the National Academies to assess the environmental and public health impacts of these facilities.
No Harm Data Centers Act Targets Grid Costs: Large Tech Facilities to Pay for Own Power Upgrades Starting 90 Days After Enactment
The No Harm Data Centers Act shifts the financial burden of massive power grid upgrades away from everyday families and onto the tech giants building high-capacity data centers. Specifically targeting facilities with a peak demand of over 50 megawatts—roughly enough to power 40,000 homes—the bill grants the Federal Energy Regulatory Commission (FERC) the power to set electricity rates for these sites. This ensures that when a massive server farm moves into town, the cost of building new substations or transmission lines stays on their tab rather than showing up as a 'grid modernization' fee on your monthly residential bill.
Putting the Bill on Tech’s Tab
Under Section 3, utilities are strictly prohibited from shifting the costs of data center infrastructure onto non-data center customers. For a small business owner or a family on a fixed budget, this acts as a firewall against the rising costs of the 'AI arms race.' If a utility needs to build a new power plant or upgrade high-voltage lines specifically to keep a 60-megawatt data center humming, the bill mandates that the data center’s rates must cover those specific costs. To keep everyone honest, the bill introduces a massive stick: civil penalties of up to $10,000,000 per day for utilities or companies that violate these rate-setting rules.
Pulling Back the Curtain on Construction
Section 4 of the bill tackles the 'secret' nature of these projects by making predispute nondisclosure agreements (NDAs) unenforceable against public officials regarding data center construction. In the past, a city council member might have been barred from discussing the specifics of a massive project with their constituents due to a contract signed months earlier. This provision aims to ensure that the people you elect can actually talk to you about what’s being built in your backyard and what the long-term impacts might be for the local environment and water supply.
Assessing the Footprint
Beyond the power grid, the bill looks at the physical impact these 'cloud' factories have on the ground. Section 5 requires the National Academies to deliver a comprehensive report within 180 days on how these facilities affect noise levels, air quality, and local water consumption. For a resident living near a proposed site, this means federal recommendations for mitigation—like noise barriers or water recycling requirements—could soon become part of the conversation. While the bill provides a clear win for ratepayer protection, the high penalties and new federal oversight represent a significant shift in how we regulate the infrastructure of the digital age.