A new bill has been proposed in the US Senate that would permit artificial intelligence (AI) data center firms to bypass federal electricity regulations by building their own energy infrastructure.

The DATA Act of 2026 was proposed by Senator Tom Cotton (Republican, Arkansas) and would amend the Federal Power Act.

“American dominance in AI and other crucial emerging industries should not come at the expense of Arkansans paying higher energy costs,” Cotton said in a statement. “My bill will ensure that America can continue to lead in these spaces by eliminating outdated regulations.”

If passed the bill would create a new utility category called “consumer-regulated electric utilities” (CREUs), with companies who build their own independent power infrastructure falling under this new designation. In order to qualify for CREU, the utilities would have to be completed disconnected from the main grid and built solely to serve new electric loads. Consequently, if the utility subsequently connects to the grid it would lose its exempt status.

top 22 comments

sorted by: hot top controversial new old
[–] 70 points 9 months ago* (last edited 9 months ago) (8 children)

Unless they specify Solar, Wind, or Hydrogen, it's just going to be these assholes building their own coal generators FFS.

Big NOPE

  • source
  • hideshow 8 child comments
  • [–] 5 points 9 months ago*

    I dunno, at least some of planned datacenters ARE doing that. For example an absolutely ENORMOUS Solar Farm is being built in Cheyenne, Wyoming for another Microsoft DC. For a previous MS DC a big ass wind farm was built. Meta is building a fuck you sized DC in Cheyenne and recently inked a deal with Terrapower for a natrium powered reactor.

    I dislike having to defend these assholes but the Green Energy thing has been done, is being done, and they have definite plans to do more of it.

  • source
  • parent
  • [–] 1 point 9 months ago (1 child)

    Natural gas fuel cells were a pretty popular choice there for a while. Bloom energy has been marketing their shit towards datacenters for as long as I can remember, and as far as I know they use a similar mechanism to hydrogen fuel cells where you're just stripping electrons off of the methane molecules.

  • source
  • parent
  • hideshow 1 child comment
  • load more comments (-1 replies)
  • [–] 20 points 9 months ago*

    If passed the bill would create a new utility category called “consumer-regulated electric utilities” (CREUs), with companies who build their own independent power infrastructure falling under this new designation. In order to qualify for CREU, the utilities would have to be completed disconnected from the main grid and built solely to serve new electric loads.

    A visual depiction of this bill from the perspective of someone from Arkansas.

  • source
  • [–] 19 points 9 months ago

    Democrats are far from perfect, but republicans never propose anything reasonable.

  • source
  • [–] 18 points 9 months ago (2 children)

    Meaning fuel powered generators? Bah.

  • source
  • hideshow 2 child comments
  • [–] 16 points 9 months ago (1 child)

    Eco-terrorism is making a comeback.

  • source
  • hideshow 1 child comment
  • [–] 12 points 9 months ago

    Tom Cotton should be thrown into a live high voltage electrical grid

  • source
  • [–] 8 points 9 months ago

    Rules for thee, not for me!

  • source
  • [–] 7 points 9 months ago (1 child)

    Didn’t Texas try something like this?

  • source
  • hideshow 1 child comment
  • [–] 5 points 9 months ago* (last edited 9 months ago)

    I know the grid in Texas is (was?) separated from the main national grid, and I guess, maybe something like this could eventually lead to a state wide grid that's disconnected from the main grid, and maybe that's very much the long term intention and a real problem.

    It would take awhile to manifest as a big issue though as at least the blurb indicates it has to be for newly built power plants and new loads.

    If a data center wants to build their own offgrid power system though I don't see the harm in that? In the future they might very well be building SMR's to power only their facility.

    I think it should all still be overseen by whatever existing regulations there are and kept to the same standards though. And maybe some rules about connecting them to other purpose built ones under this same grouping?

    Like, Apple builds one, and then Google builds one. Google and Apple can't join together.

    Maybe even limit it to some strict commercial type use, so Google can't be doing this to power a google city where residents live.

    Edits: Clarity and thoughts along those lines.

    Edit: Oh and it should be mandated to be green energy.

  • source
  • parent
  • [–] 6 points 9 months ago

    This is pure greed in action

  • source
  • [–] 4 points 9 months ago

    it should definitely be legal to hunt politicians for food.

  • source
  • 5 comments in c/politics@lemmy.world view that post
    [–] 10 points 9 months ago (2 children)

    I kind of like this. Solely to serve new loads is definitely a giveaway to the utility companies but I feel like the big utility players are going to be largely building these microgrids (if that title can be used for something that carries the power of a city.) Better than me paying extra for ai data center wear and tear on the system. I have my reservations about it too. Namely, exempting big data centers from normal federal oversight without establishing new regulatory systems. The big AI players are angling for so many carve outs and it is hard to imagine that the exemption of this massive market from popular oversight will result in any benefits for the average USian.

  • source
  • hideshow 2 child comments
  • [–] 5 points 9 months ago

    This seems pretty reasonable to me, but I'm skeptical of anything with Tom Cotton's name on it. But it seems like incentivizing data centers to build their own power generation (using mechanisms that may be more suited for data center use rather than residential use) could take the edge off of their impact on residential electricity costs. Is there a downside to this, or is this a "broken clock is right twice a day" thing? Maybe it lets them bypass environmental regulations as well?

  • source
  • [–] 2 points 9 months ago

    I liked Shiawase Decision more when it was just "a bit stretched imagination"

  • source