Senate Debates Data Center Bill Amidst Rising Political Stakes

The Senate convened on Monday, November 9, to debate the Bipartisan American Affordability and Jobs Act, a sweeping energy bill that has become the first major legislative test for the incoming Democratic majority. The legislation aims to streamline approvals for new power plants and transmission lines while requiring large data center operators to cover more of the costs for necessary grid upgrades. This move places data center accountability at the center of the legislative agenda, a topic that helped drive voters to the polls last week.

Supporters argue the bill offers a practical path to managing the costs associated with the rapid expansion of artificial intelligence infrastructure. Senator Sheldon Whitehouse, a co-author and the top Democrat on the Senate environment committee, stated that the bill allows lawmakers to begin delivering on election promises regarding affordability and accountability. He told Reuters that Democrats would be foolish not to accept this opportunity. The bill also includes protections intended to prevent households and businesses from absorbing costs if specific projects fail.

The bill’s chances of passing have dropped to 25%, down from 40% before the election, according to investment firm TD Cowen. This decline reflects a shift in political dynamics following the recent landslide victory for Democrats. Jeremy Harrell, chief executive of the conservative group ClearPath Action, described the data center language in the bill as a good first step, noting that these are policies where both parties find common ground. President Donald Trump, who has endorsed the measure, urged the Senate to pass it on Sunday, warning that China would acquire any data centers the United States did not want.

Opposition to the bill persists from environmental and tribal groups, who argue it weakens environmental reviews and undermines tribal sovereignty. Bill McKibben, an author and environmentalist, called it ironic that Congress would move to make it easier to build data centers after an election defined by opposition to them. The bill’s authors unveiled a package of amendments on Saturday to address some concerns, but organizations including the Sierra Club said the changes were insufficient. House Democratic Leader Hakeem Jeffries, expected to become speaker next year, told Politico on Friday that the bill falls short on environmental protections and requires further input from House Democrats.

Senator Ron Wyden of Oregon suggested on Friday that Democrats should use their new leverage to negotiate a different approach. He said in a statement that the party has a unique opportunity to reduce red tape for energy projects to lower costs without risking political interference. While the Data Center Coalition has not endorsed the bill, some analyses suggest its reforms could reduce greenhouse gas emissions from data center operations by 31% to 90%, depending on the power source mix, according to Rhodium Group. Joseph Majkut, who leads the energy security program at the Center for Strategic and International Studies, noted that the provisions on data center costs might be the key to saving the bill.