(The Center Square) – Lawmakers are increasingly concerned about the rapid expansion of AI technology and its impact on cybersecurity, the power grid, and online safety.
The Trump administration and some Republicans, such as Sen. Ted Cruz (R-Texas) and Rep. Brett Guthrie (R-Ky.), have called for a moratorium on federal regulation of AI in states, but most others are calling for a more cautious approach.
In a letter Friday, Democratic members of the House Energy and Commerce Committee called on the Federal Energy Regulatory Commission to ensure that the proliferation of AI data centers does not raise Americans’ utility bills.
Lawmakers asked FERC to “prioritize protecting American households from the costs imposed on the nation’s power grid by large loads, including data centers,” as the commission considers proposed rulemaking to address the impact on the grid of increased electricity demand.
“Ensuring that building a 21st century power grid is fundamentally fair will require many stakeholders, including Congress, the federal government, and state regulators,” the lawmakers wrote.
“However, we recognize the need for FERC’s swift action in this case. This could help prevent a ‘race to the bottom’ where data center developers are incentivized to build in jurisdictions with the weakest regulations, rather than in the best locations to minimize the costs they impose on the grid.”
Several states are trying to lure data center developers with large tax breaks, even though the majority of American voters don’t want energy-hungry data centers built in their communities.
A recent study by Harvard Law School found that areas with data centers often see higher energy costs as electricity demand soars and power companies force American taxpayers to fund discounted data center rates.
Nevertheless, as data centers continue to pop up across the country, the Trump administration’s push for uniform AI regulations across the country is intended to spur both data center construction and AI innovation in general.
One federal AI standard, originally included in the One Big Beautiful Bill before senators stripped it, could, depending on its form, prevent states from enacting AI-related online safety laws, zoning restrictions, tax rules, and other regulations.
Suspension of support for AI Republicans once again tried to enshrine a 10-year moratorium on AI into law. This time, it will be included in the National Defense Authorization Act of 2026, an annual mandatory defense bill to be introduced next week.
But after strong opposition from both Democrats and Republicans, House Majority Leader Steve Scalise (R-Louisiana) said this week that he doesn’t believe the NDAA includes a moratorium, explaining that a must-pass bill “wasn’t the best place to fit this.”
Sen. Josh Hawley, R-Missouri, responded on social media: “Good. This is a terrible provision and should be banned.”
But Scalise added, “There’s still interest, so we’re looking at other locations.”
