Maryland Senator Targets Data Centers Over Grid Costs
A U.S. Senator from Maryland is moving to address the growing strain data centers place on the nation’s electric grid, echoing legislative efforts now underway in Oklahoma that seek to rein in the soaring energy demands of large-scale technology facilities.
Sen. Chris Van Hollen has introduced federal legislation aimed at forcing major technology companies to shoulder a larger share of the cost for electric grid upgrades driven by the rapid expansion of data centers. The proposal mirrors concerns raised by Oklahoma lawmakers as utilities such as Oklahoma Gas and Electric and Public Service Company of Oklahoma plan billions of dollars in new infrastructure to meet projected demand growth in the coming years.
Push for National Standards on Grid Cost Recovery
Van Hollen said his legislation is designed to establish consistent, nationwide standards so the costs associated with powering data centers are not shifted onto residential ratepayers and small businesses. Similar arguments are being made in Oklahoma, where lawmakers have filed multiple bills ahead of the legislative session focused on how hyperscale data centers affect electric rates, system reliability, and long-term infrastructure planning.
The senator warned that without clear rules, consumers across the country are increasingly being forced to subsidize the energy needs of some of the world’s largest corporations.
Data Centers, AI, and Rising Power Demand
In announcing the bill, Van Hollen pointed to the explosive growth of artificial intelligence and cloud computing as a major driver of electricity demand.
“Amid the growing use of artificial intelligence (AI), corporations and big technology companies’ build out of data centers has exploded in the past decade and is projected to continue to rapidly increase,” Van Hollen said. “As more and more data centers aim to connect to the power grid, consumers are footing the bill for the infrastructure required to bring them online.”
He added that because data centers consume massive amounts of electricity, they are placing increasing pressure on the nation’s electric grid, driving up energy prices and raising the risk of reliability problems, including potential blackouts.
Power to the People Act Targets Cost Shifting
The legislation, titled the Power to the People Act, would require data center operators to pay for the grid upgrades necessitated by their energy usage, rather than allowing those costs to be embedded in utility bills paid by everyday customers.
According to Van Hollen, the bill would also ensure that new data centers do not overwhelm existing grid infrastructure and that grid expansion is carried out with strong labor standards in place.
“The Power to the People Act holds data center operators accountable for their role in driving up energy prices through reforms that would prevent consumers from subsidizing data center development through their utility bills,” the senator said. “It also ensures that data centers connecting to the grid do not overwhelm it, preventing grid reliability issues that result in power outages.”
PJM Region Shows Financial Impact on Consumers
The senator cited data from the Union of Concerned Scientists showing the financial impact data centers are already having on consumers in the Mid-Atlantic region.
In the PJM Interconnection — the nation’s largest electric grid, serving 67 million Americans across 13 states and Washington, D.C. — consumers have paid or are expected to pay billions of dollars in transmission upgrades tied to data center growth.
According to the analysis, customers in the PJM region paid at least $4.6 billion in 2024 and are projected to pay another $3.1 billion in 2025 for local transmission upgrades, totaling $7.7 billion over just two years.
Van Hollen said those figures underscore the urgency of addressing how grid expansion costs are allocated as data center development accelerates nationwide, including in states like Oklahoma that are actively courting large-scale technology investments.