U.S. Rep. Greg Landsman of Cincinnati is co-sponsoring new legislation that seeks to protect residents and small businesses from rising electricity bills tied to artificial intelligence data centers.
The Protecting Families from AI Data Center Energy Costs Act, introduced Tuesday by Landsman and Virginia Democrat Don Beyer, would require the Federal Energy Regulatory Commission (FERC) to convene major industry stakeholders and produce a report on how to keep utility costs from being passed on to surrounding communities. National electricity use hit a record high in 2024 and is expected to climb, driven in part by AI’s heavy power demands.
With 215 data centers, Ohio ranks fifth in the nation for most data centers by state, according to Data Center Map. American Electric Power says another 30 gigawatts’ worth of proposed projects want to connect to the grid — more than triple Ohio’s statewide peak load in 2023. To manage the surge, AEP imposed a moratorium on new data center hookups and won approval for a data center-specific tariff with minimum purchase requirements and exit fees, a plan now being challenged at the Ohio Supreme Court by the Ohio Manufacturers’ Association.
Landsman’s bill aims to generate policy recommendations to help stabilize prices. He said local ratepayers shouldn’t be subsidizing the AI industry.
“Costs are increasing in every aspect of people’s lives – adding to the affordability crisis. Residents and small businesses in states like Ohio, which is home to nearly 200 data centers, shouldn’t be footing the bill to support them,” Landsman said. “There needs to be a plan to address this.”
Beyer said electricity prices are already rising sharply in Virginia and warned that federal inaction, along with GOP-backed delays in building new energy projects, is worsening the problem.