NEWS: Representatives Costa, Moore Call for Federal Study on AI Data Centers’ Impact in Rural America

WASHINGTON – Rising energy demand from AI data centers has led to higher utility costs for consumers. To address this challenge, U.S Representatives Jim Costa (CA-21) and Blake Moore (UT-01) introduced H.R. 5227 - Unleashing Low-Cost Rural AI Act, bipartisan legislation to require the U.S. Departments of Energy, Interior, and Agriculture to study the impact of AI data center expansions in rural America.

“AI Data Centers are expanding rapidly and using more energy and water than entire cities. That energy demand is driving up utility costs for consumers,” said Congressman Costa. “My legislation ensures we take a hard look at how this growth impacts rural communities that are powering the AI industry, and make sure families aren’t left paying the price.  But at the same time, it’s important that rural communities are not left behind in the new opportunities that AI data centers will provide for agricultural sciences and an improved ability to compete in this modern era.”

“As a leader in both tech and energy innovation, Utah is a prime location for data centers and AI infrastructure. Cementing our role as an innovation hub will require identifying rural areas ready for data expansion, streamlining permitting for new energy projects, and promoting the co-location of data centers with energy facilities,” Congressman Moore said. “These efforts will power our growing digital demands without passing costs on to families. I’m grateful to partner with Representative Costa to introduce the Unleashing Low-Cost Rural AI Act to identify other areas of the country, like Utah, that will advance solutions to meet our energy needs.”

BACKGROUND
Artificial Intelligence (AI) data centers are increasingly being built in rural areas to power the AI industry. This surge has led to increased energy demand and higher utility costs for consumers. PJM, the world’s largest energy market that covers 13 U.S. states from Illinois to Washington, D.C., estimates that data centers are responsible for an added $9.3 billion in costs for ratepayers.

The Unleashing Low-Cost Rural AI Act would require the U.S. Departments of Agriculture (USDA), Interior, and Energy to conduct a joint study on the impact of AI data center expansions in rural areas. Specifically, it would identify rural areas poised for technological expansions and the impact of such expansion on energy supply, reliability, and costs to consumers.

This study would also look at ways to upgrade existing energy infrastructure so AI and data centers can be built alongside power facilities. It will review not just nuclear and geothermal energy, but also hydroelectric dams, solar, wind, battery storage, and carbon capture.