US Congress gets first post-'Blue Wave' crack at data centers with permitting bill
QQQ•A bipartisan energy bill due for Senate debate would speed approvals for power plants and transmission lines and require large data center operators to pay more for grid upgrades. TD Cowen estimated its chance of passage at 25%, down from 40% before the election.
1. Bill targets data center costs
The Bipartisan American Affordability and Jobs Act would speed approvals for new power plants and transmission lines, while requiring large data center operators to bear more of the cost of grid upgrades needed to serve them. It would also seek to prevent households, businesses and other utility customers from being left with costs if projects fail.
2. Passage remains uncertain
The bill faces opposition from environmental and tribal groups, which say it weakens environmental reviews and undermines tribal sovereignty. Some Democrats also want stronger environmental protections; bill authors have proposed amendments, but several environmental groups said the changes would not resolve their objections.
3. Debate over impact
TD Cowen put the bill’s chance of passage at 25%, down from 40% before the election. Rhodium Group estimated that transmission and permitting reforms could reduce emissions associated with data center operations by 31% to 90%, depending on the mix of power sources.
