The Ratepayer Protection Act wouldn't provide a blanket top-down protection from the federal level. Instead, it would put pressure on state regulatory bodies to ensure any costs from data centers don't make their way into residential and business utility bills.
We're about six months ahead of China in AI, people predict. If we had a year moratorium, let's say that's nationwide, and we get behind China, we'll never catch up.Rep. Brett Guthrie (R-KY)
Energy and Commerce Committee Chair Rep.
Brett Guthrie told Fox the bill isn't meant to hamper growth of the AI sector.
"So we've talked to stakeholders that do AI, but the most important stakeholders to us are our constituents. And we don't want them to have to foot the bill. And so what we do is that we actually direct federal resources to help states put in place their ratepayer protection plan," he said. "So it's not a federal government one-size-fits-all."
Kentucky lawmakers advanced their own state-level ratepayer protection measure during this year's General Assembly, but it did not clear the finish line by the end of the session.
In the months since, various communities, including Lexington, have opted for moratoriums in response to public outcry over the fast-moving data center developments.
Guthrie said he doesn't want to see the federal government going the same route because it could put the U.S. at a strategic disadvantage against China.
"We're about six months ahead of China in AI, people predict. If we had a year moratorium, let's say that's nationwide, and we get behind China, we'll never catch up. And it will continue China's march to superpower," the congressman argued.
Thursday, Republican governors announced their support for President Donald Trump’s Ratepayer Protection pledge, which reads in part: "Data center infrastructure is the foundation of the Internet, cloud computing, and artificial intelligence, and supports our economic and national security. As that infrastructure grows and the related electricity demand increases, the American people should not be footing the bill for the benefit of private companies."
Some Kentucky communities have allowed data center projects to advance, as others are putting projects on hold while they craft local policies surrounding the controversial developments.
A draft ordinance in Lexington would prohibit data centers larger than 50,000 square feet, while keeping smaller centers inside warehouse and industrial zones. A public hearing on the ordinance will be held on July 30 in the Government Center.