Congress and states push back on AI data centers over rising electricity costs
A House panel is set to vote on legislation that would require major AI developers to cover the electricity and water costs of their data centers, keeping the burden off residential customers. Similar moves are underway in states such as Virginia and New Jersey, where local authorities have asked schools and businesses to conserve power and have passed bills limiting grid impact. The push comes as AI workloads drive utilities to plan record spending—estimated at $240 billion in 2026—and clean‑energy contracts used by firms like Google and Meta are expected to rise sharply after subsidy cuts. Investors see an energy‑boom opportunity, while companies such as Nvidia explore partnerships to offset the utility load, highlighting the tension between AI growth and grid sustainability.
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