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Serving them requires costly grid upgrades, and under current rules utility companies can pass those costs on to everyday ratepayers instead of the companies driving the demand. In the first half of 2025 alone, utilities across the country requested more than $29 billion in electricity rate increases – nearly double what they sought the year before – as they scramble to make infrastructure upgrades and meet increased need.\n\nRiley’s legislation ensures those costs are paid by the large corporate customers creating the demand, not the families, farmers and small businesses already struggling with rising utility bills.\n\n“Upstate New Yorkers are already paying through the nose for electricity, and we shouldn’t have to pay a penny more so Big Tech can rake in record profits,” Riley said. “If out-of-state tech companies want to build data centers here, they can pay their own way – not stick Upstate families with the bill.”\n\n“Artificial intelligence has the potential to do a lot of good for our country, but that growth must be handled responsibly,” said Congressman Van Drew. “Families and small businesses are already paying far too much for electricity, and they should not be hit with even higher bills because major data center projects require massive amounts of energy and new infrastructure. The FAIR Data Act makes sure the companies behind these projects cover those added costs instead of passing them on to ratepayers. I am proud to join Congressman Riley in putting the people we represent first.”\n\nSeveral data center developments have been proposed across New York’s 19th Congressional District. In Lansing, Maryland-based TeraWulf is seeking to build a 300-to-400-megawatt AI data center at the former Cayuga Power Plant, and in Oneonta, a company called Eco-Yotta has pursued a rezoning for an AI data center on County Road Nine. Both projects have faced fierce local opposition.\n\nSpecifically, the FAIR Data Act would:\n\nProtect families and small businesses from subsidizing Big Tech: Ensures residential customers and small businesses are not forced to pay for electric grid upgrades needed to serve massive data centers.\n\nKeep costs where they belong: Requires investor-owned utilities to recover the costs of serving large data centers from those facilities—not from everyday ratepayers.\n\nPrevent cost-shifting: Prohibits utilities from passing along the costs of generation, transmission, and distribution upgrades built to accommodate very large data centers (75+ MW) onto households and small businesses.\n\nSupport free-market principles: Ensures large corporate electricity users pay their own way instead of relying on cross-subsidies from residential customers.\n\nStrengthen state oversight: Uses the existing Public Utility Regulatory Policies Act (PURPA) framework to require state utility regulators to review and implement this consumer-protection standard while preserving state ratemaking authority.\n\nPromote accountability: If a data center claims it will lower local electricity bills, it must report annually on whether those promised savings actually materialized.\n\nIncentivize responsible regulation: Conditions certain Department of Energy (DOE) administrative assistance on states certifying that data center costs are not shifted onto residential and small business customers.\n\nImprove transparency: Requires the Federal Energy Regulatory Commission (FERC) to submit annual reports to Congress on how large d","url":"https://riley.house.gov/2026/07/13/riley-introduces-bill-to-stop-data-center-projects-from-driving-up-energy-bills/","published_at":"2026-07-13","ai_topics":["data_centers","regulation"],"ai_stance":"support","ai_summary":"Riley's FAIR Data Act would federally require Big Tech AI data centers, not ratepayers, to pay for the grid upgrades their facilities 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