The No Harm Data Centers Act would give the Federal Energy Regulatory Commission authority to set electricity rates for large data centers (those using more than 50 megawatts of power) and require data centers to pay the full cost of building and upgrading electrical infrastructure needed to support their operations, rather than shifting those costs to residential and small business customers. The bill prohibits electric utilities from passing data center infrastructure costs onto other ratepayers and establishes penalties of up to $10 million per day for violations. Additionally, the legislation bars enforceability of nondisclosure agreements that prevent public officials from discussing data center construction deals, and requires the Environmental Protection Agency to work with the National Academies to assess data centers' environmental and public health impacts—including effects on noise, air quality, water consumption, and carbon emissions—within 180 days of the bill's enactment. The changes apply to traditional electric utilities but exempt rural cooperatives, public utilities, the Tennessee Valley Authority, and federal power marketing administrations.
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