State Lawmakers Advance Bipartisan Surcharges on Massive AI Data Center Electricity Consumption

RICHMOND, VA — Bipartisan legislative caucuses across key technology corridors in Virginia, Texas, and Georgia finalized draft legislation on Sunday to rein in the escalating impact of artificial intelligence data centers on regional electric grids and residential utility bills.

Legislative Safeguards and Ratepayer Protection

In Northern Virginia's "Data Center Alley," where data centers consume over 30% of Dominion Energy's total peak power output, lawmakers from both parties agreed to co-sponsor the Ratepayer Energy Protection Act for the 2027 legislative session. The statute requires commercial data center campuses exceeding 100 megawatts to finance 100% of dedicated high-voltage substation and transmission interconnection costs.

The measure bars electric utilities from rolling capital expansion costs for tech campuses into baseline residential rate structures, protecting household electricity consumers from rate spikes.

Water and Power Scarcity Concerns

Similar legislative efforts in Texas and Georgia mandate that data centers incorporate closed-loop air cooling or non-potable recycled water systems, preventing the depletion of municipal drinking water aquifers during summer heatwaves.

Technology trade associations, representing major hyperscale cloud operators, argued that punitive tariffs could drive high-wage digital infrastructure investment to neighboring jurisdictions, advocating instead for collaborative clean energy procurement partnerships.

National Trend

The National Conference of State Legislatures (NCSL) reported that over 14 states are currently drafting regulatory frameworks to balance artificial intelligence data center growth with grid stability.