Lawmakers are sounding the alarm over the unchecked growth of artificial intelligence and its potential strain on America’s power grid, cybersecurity, and public safety. While the Trump administration pushes for a national override of state-level AI regulations, a bipartisan group in Congress is calling for a more cautious path forward.
The debate over AI policy escalated Friday when House Democrats sent a letter to the Federal Energy Regulatory Commission (FERC), urging the agency to protect everyday Americans from rising energy costs caused by the boom in AI data centers. These centers, which require immense electricity to function, are sprouting across the U.S. as states compete to attract developers with generous tax breaks.
Lawmakers want FERC to ensure that any regulatory moves put consumers first, warning of a “race to the bottom” scenario where developers flock to states with the weakest oversight, leaving communities to shoulder the costs. The letter emphasized the need for fair, national rules that protect both ratepayers and the integrity of the grid.
Data centers have become a flashpoint in the debate, with studies showing that their soaring power demand often results in increased rates for local residents. According to recent research from Harvard Law School, utilities in some areas pass on the costs to taxpayers to offer discounted electricity to the data centers.
Despite public opposition to these facilities, the Trump administration is focused on accelerating both AI development and infrastructure by pushing for one federal AI standard. That would preempt individual states from enacting their own safety regulations, zoning rules, or taxation policies related to AI technology.
Republicans backing the Trump administration’s approach, including Sen. Ted Cruz and Rep. Brett Guthrie, attempted to include a decade-long ban on state AI regulations in this year’s National Defense Authorization Act (NDAA). That effort failed, however, after backlash from both sides of the aisle.
House Majority Leader Steve Scalise acknowledged the growing interest in national AI rules but confirmed the NDAA would not be the vehicle for a moratorium. “It wasn’t the best place for this to fit,” he said this week, noting that lawmakers are exploring alternative avenues to revisit the proposal.
If Congress does move forward with a single federal AI policy, the impact could be wide-reaching, affecting not just energy use and innovation, but also state and local control over emerging technologies. As AI continues to evolve rapidly, the question remains whether the federal government will opt for a unified path or allow states to tailor rules to their specific concerns.
