The GRID Act (Guaranteeing Rate Insulation from Data Centers Act) requires large data centers to generate their own power rather than rely on the electrical grid, protecting residential utility customers from rate increases caused by data center energy demands. Beginning 180 days after enactment, all new data centers with power demands of 20 megawatts or more must source all energy from on-site generation, captive power plants, or other independent sources, not the grid. Existing data centers have 10 years to comply or obtain a "Zero Rate Effect Certificate" from the Department of Energy, which certifies they won't raise residential electricity rates; to qualify, data center companies can pay "Rate Effect Credits" or other offsets. The bill also requires data centers to publicly disclose utility usage projections, real property acquisitions for expansion, and utility service agreements, while imposing penalties of at least $1 million per day for violations. Construction of any power sources must follow union project labor agreement requirements.
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