Proposed Bill Forces Data Centers to Fund Grid Expansion
The 2026 federal act would prevent developers from shifting infrastructure costs to Utah families and businesses.
Updated on Oct. 23, 2026 in Data Centers
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On September 16, 2026, Senator Mike Lee introduced the Bipartisan American Affordability and Jobs Act of 2026. The proposed 417-page legislation seeks to shift the financial burden of grid infrastructure and electricity expansion directly onto data center developers.
Why it matters
The bill addresses growing concerns in Utah regarding the impact of energy-intensive computing facilities on the state's power grid. By mandating that data centers cover their own infrastructure costs, the legislation aims to protect local families and businesses from potential rate hikes.
The proposed bill requires data centers to fund 100% of grid expansion costs and electricity usage. This policy applies to massive infrastructure projects like the $17 billion Delta Gigasite in Millard County, which must now account for these capital expenditures up front.
The players
Senator Mike Lee
United States Senator who introduced the 2026 legislation to address data center energy impacts.
Creekstone Energy
Developer managing the $17 billion Delta Gigasite project in Millard County, Utah.
Shon Hiatt
Expert witness who testified before the Workforce Services Interim Committee on August 19, 2026.
The details
The 417-page bill mandates that data center operators pay for all associated grid expansions, preventing costs from being passed to residential or commercial ratepayers. Furthermore, the legislation authorizes states to require that operators build their own power plants or implement mandatory load-shedding protocols, where electricity usage is reduced during peak demand hours, to maintain grid stability.
Timeline
September 16, 2026: The Bipartisan American Affordability and Jobs Act was introduced.
August 19, 2026: Shon Hiatt testified regarding these issues to the Workforce Services Interim Committee.
2020-2025: Investor-owned utilities reported no significant power price impacts from data centers.
The Tech Race
The Bipartisan American Affordability and Jobs Act of 2026 shifts the regulatory paradigm for large-scale computing infrastructure. It marks a departure from historic utility practices where developers relied on existing grid capacity subsidized by general ratepayers.
If enacted, the bill would eliminate the possibility of residential rate hikes driven by the power needs of massive projects like the Delta Gigasite. Utah businesses and families should watch for upcoming Senate committee votes to see if these financial protections remain in the final version.
The takeaway
The proposed legislation signals an end to the era where grid expansion for data centers is automatically socialized across the ratepayer base. Observers should track the Senate committee voting schedule to see how these developer financial guarantees are refined before the bill moves to the House.
Further reading
For broader context on how computing infrastructure impacts regional power grids, see our latest coverage in Data Centers.
Source note: This article includes information reported by Deseret News.
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