New Federal Bills Target Energy Costs

As artificial intelligence fuels the rapid expansion of data centers across New Jersey, federal lawmakers are introducing legislation aimed at limiting the industry’s impact on household energy bills and the environment.

Representatives Rob Menendez (NJ) and Greg Casar (TX) this week introduced the Preventing Rate Inflation in Consumer Energy (PRICE) Act and the Data Center Transparency Act. The bills would require large data centers to generate their own electricity, transition to renewable energy sources, and publicly disclose their energy and environmental impacts.

The legislation follows continued growth of AI-driven data infrastructure in the state. HudPost recently reported on CoreSite’s opening of its third data center in Secaucus, part of a broader expansion driven by rising AI demand and data processing needs.

According to Menendez’s office, electricity bills in New Jersey have increased by roughly 20 percent, with data center load growth cited as a key contributor to higher prices in the PJM regional grid. Nationally, data centers now account for more than four percent of U.S. electricity consumption, a figure expected to rise. “While AI innovation is promising, we must ensure that our constituents are not negatively impacted because of the industry’s continued growth,” said Congressman Menendez. “Addressing the growing energy affordability crisis requires bold solutions, and that is what we are delivering with this legislation that puts working families first.”

The PRICE Act would require data centers to source 75 percent of their power from renewable energy by 2035 and reach 100 percent by 2040, with penalties for noncompliance. The Data Center Transparency Act would require the Environmental Protection Agency and the Energy Information Administration to regularly report on data center energy use, water consumption and pollution impacts.

Supporters of the bills argue the measures are necessary to protect consumers from rising utility costs while increasing public oversight as AI infrastructure continues to expand.