US Senator proposes bill permitting AI data centers to bypass federal power rules via off-grid energy infrastructure development

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www.datacenterdynamics.com/en/news/us-senator-p…

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 “My bill will ensure that America can continue to lead in these spaces by eliminating outdated regulations.”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.

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

Big NOPE

Honestly, if they made it a requirement that it has to be 100% clean energy, this could actually be a net positive, but of course they won’t because it’s Trump’s admin and he’s got a boner for coal and oil.

boner bribe

Fixed that for you

Saw something about the EPA rolling back air quality regulations too

Good times

For perspective, the one they’re proposing to build in southern NM has an estimated pollution output larger than the entire El Paso region.
https://www.riograndesierraclub.org/project-jupiter/

Any available gas turbines are already being sucked up. Old commercial jet engines are a very popular choice right now.

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.

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.

Its still natural gas. Getting it out of the ground is an ecological disaster.

It’s also a byproduct of petroleum refinement and an even worse greenhouse gas than CO2, so breaking it down into CO2 and water is better than just releasing it. Might as well make some lemonade.

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.

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

Meaning fuel powered generators? Bah.

Apparently they’re looking at tying together hundreds of stand alone generators from Caterpillar.

I also read an article on trying to reuse old jet engines too. They’re trying to get their hands on anything that can produce electricity.

Eco-terrorism is making a comeback.

Long overdue but a welcomed return nonetheless.

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

“guys I’ve got some money coming my way, so here’s a cool idea..”

Rules for thee, not for me!

Didn’t Texas try something like this?

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.

This is pure greed in action

it should definitely be legal to hunt politicians for food.

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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.

The issue, I think, would be they likely will end up being coal and gas… adding insane pollution.

Sounds good except Grok is powered by gas generators poisoning small communities.

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?

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