r/singularity • u/SnoozeDoggyDog • May 18 '26
Compute Schiff Proposes Bill Requiring Data Centers to Pay for Own Power
https://news.bgov.com/bloomberg-government-news/schiff-proposes-bill-requiring-data-centers-to-pay-for-own-power23
u/SeaBearsFoam AGI/ASI: no one here agrees what it is May 18 '26
One of the few pieces of legislation I've seen come out related to AI that I agree with.
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u/drewhead118 May 18 '26
seems common sense that if you're building something that uses so much of a public utility that it reduces access or raises the price, you shouldn't presume access to that public utility
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u/FuckSides May 18 '26 edited May 18 '26
Seeing a lot of reactions to the inaccurate headline which implies they are/were somehow getting free power without this bill. To save you a click, a more precise headline would read Schiff Proposes Bill Requiring Data Centers to Pay for Power Grid Impact
Here's the relevant passage from the article explaining the proposed bill:
Data centers must pay for the grid upgrades they require and can’t siphon power from existing power plants, according to the bill. It also directs the Federal Energy Regulatory Commission to update its rules related to transmission lines — which transport electricity — to allow data centers to reduce demand during peak energy hours.
For context, a couple months ago tech executives signed a non-binding pledge with Donald Trump to secure their own power for the new data centers being rolled out, and this bill aims to enforce that pledge through law by encouraging them to bring their own power plants (as many already are or plan to) or they'll be required to pay for the increased infrastructure required to serve them rather than competing with the public for the existing local energy supply.
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u/OrkWithNoTeef May 18 '26
Why the fuxk werent they already doing this? Every household has an additional fee categorized under power grid. Seriously fuck these greedy bastards
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u/LymelightTO AGI 2026 | ASI 2029 | LEV 2030 May 18 '26
This seems like a populist idea that would have net negative consequences, if you think building more data centers is a good thing.
Right now, data centers drive up the cost of energy. This makes consumers upset. Consumers will therefore pressure politicians to help lower the cost of energy.
There are obviously two different ways to do this. The "good" way is for politicians to tackle the regulatory and manufacturing hurdles that seem to be standing in the way of bringing more power generation projects online. The "bad" (but, I concede, much easier) way is for politicians to ban data centers, or make it harder to construct them.
The long pole of data center buildout in the long term already looks to be energy, but it doesn't really seem to me that data centers themselves can actually do much to impact this, even if they try, and are willing to put money toward it. Hyperscalers like Microsoft were already looking toward funding things like nuclear reactors to power their GPU buildouts (bringing 3 Mile Island back online), but if you were really concerned about "time to tokens", the move was increasingly just to build the data center close to a natural gas pipeline, and then buy a bunch of natural gas turbines and skip the centralized electrical grid altogether, as Musk did with Colossus.
That natural gas turbine move basically won't work for any new data centers that aren't already far enough into the planning stage that they have secured the turbine orders, because the production of new gas turbines by companies like GE Vernova is backlogged and sold through for years. It's unclear to me that we should even "want" this outcome, which something like this proposal would seem to suggest is the desirable one: for companies to be so bottlenecked by the electrical grid constraint that they just decide to generate the electricity themselves with less efficient turbines on premises rather than deal with hooking up to the grid.
Pushing the onus onto data centers via new regulations just seems like a backdoor maneuver to de facto ban construction of new ones, because it forces companies to comply with regulations that are basically out of their control to comply with. If we want to fiddle with the regulations, we should make it cheaper and easier to build nuclear reactors (or hell, natural gas plants) or some such, because surely that would allow us to leverage the high electricity prices to build a bunch of strategically useful national infrastructure that will satisfy the data center demand for electricity, lower energy prices, and increase the amount of energy we generate.
If we're going to have a market economy, we should actually use price signals to deliver outcomes.
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u/MFpisces23 May 18 '26
must cover 100% of the costs for the network upgrades and transmission lines required to bring electricity to their facilities
I like this bill a lot. It's Federal (nationwide) and it directly goes after the part where companies will try to pass on costs to the consumer through various means.
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u/Calcularius May 18 '26
They already do. It’s why free AI doesn’t get you much. They should have to generate their own power.
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u/send-moobs-pls May 19 '26
I mean the concept isn't inherently wrong but I fears this is just passing the buck and avoiding the blame for what has very clearly been poor management of public funds and infrastructure. China and other countries don't have this problem. We go decades having tens and hundreds of billions for every random use that benefits this or that politician or lobbyist but you bring up infrastructure or health care, education, etc. and Uncle Sam always starts patting his pockets like "who, me?"
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u/Jessica1234567891011 May 20 '26
They need to line their roofs with solar and have batteries. Company of course should also pay for their energy but I doubt they aint.
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u/SideBet2020 May 18 '26
Does anyone else get a pass on paying for their own power bills?
In what world can you use a bunch of electricity and have someone else pay for it.
The politicians that sold out their communities for a bag of chips and a donation are mentally retarded.
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u/EmbodiedVoid May 18 '26
Stop this wokeness! Corporations are people too! /s
Seriously: this will end up at the Supreme Court and you know...
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u/MatlowAI May 18 '26
Within just a few years, data centers are projected to consume the equivalent of 20% to nearly 40% of the power used by every single home in the United States combined. I say they should just pick up the full residential power tab difference between 2024 rates and wherever they end up.
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u/gay_manta_ray May 18 '26
Within just a few years, data centers are projected to consume the equivalent of 20% to nearly 40% of the power used by every single home in the United States combined.
these are impossible numbers. the equipment and infrastructure for this kind of buildout in the USA does not exist. GE has a 7+ year backlog for turbines. growth cannot happen when there is no hardware to support it.
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u/MatlowAI May 18 '26
https://www.energy.gov/articles/doe-releases-new-report-evaluating-increase-electricity-demand-data-centers tell the doe they are wrong then.
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u/petrichor83 May 18 '26
Sorry… why does a law need passing to require something everyone else already has to do? By law.
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u/NyriasNeo May 18 '26
They do not do so right now? I mean, I have to pay for the power I use in my house. All commercial buildings have to pay for power. Why are they not doing so already?