Senate bill to speed energy projects faces backlash over data centers

Senate advances energy infrastructure bill

On Monday, the Senate voted to advance the Bipartisan American Affordability and Jobs Act, a bill aimed at easing construction of new energy infrastructure. Sponsors hope to pass it before Congress ends in January.

Bill has broad support from labor and clean energy

The bill has support from labor leaders who say it will produce thousands of jobs and clean energy proponents who believe it could unlock wind and solar development.

Critics say it accelerates unwanted data centers

A growing coalition of anti-data center critics argues the bill would accelerate buildout of an industry Americans resoundingly voted against in the midterm elections.

Environmental groups oppose the bill

Hundreds of local and national organizations including the Sierra Club and Natural Resources Defense Council have signed letters urging Congress not to pass the bill as written.

Data center gas boom accelerating

U.S. gas projects powering data centers increased from roughly four gigawatts in early two thousand twenty-four to one hundred eighty-nine gigawatts in development by mid-two thousand twenty-six.

Gas plants worsen local pollution

In the scramble to bring AI data centers online quickly, many developers built their own gas power plants instead of waiting to connect to the grid.

Bill could fast-track gas projects

Environmentalists worry that gas-powered data centers will be the first beneficiary of the bill because there is already a massive pipeline of proposed projects waiting for approvals. Key environmental permits could be fast-tracked.

“based on their need for speed to power, the data center industry is driving a historic and alarming investment in gas and fossil fuels”

Bill threatens public and tribal lands

At least seventeen active applications for data center campuses on public land cover thousands of acres in Arizona, Idaho, Nevada and other states. BAAJA's permitting provisions could make those projects easier to advance.

Tribal nations oppose the bill

A coalition of tribal leaders wrote that the bill would gut the ability of tribal nations and the American public to identify and protect historic and cultural places threatened by federally connected projects including data…

Bill requires data centers to pay transmission costs

The bill contains ratepayer protections requiring developers to pay for added transmission costs. One study estimates data centers would pay approximately fifty-five billion dollars in transmission charges over ten years.

“The day of data center freeloading ends when this bill passes”

Senate must vote to take up legislation

Following Monday's cloture vote, the Senate must vote to take up the legislation. Any Senate-passed version would have to pass the House in identical form before going to Trump.