The FAIR Data Act would require Big Tech to pay for the grid upgrades its massive data centers require instead of passing those costs on to Upstate families
WASHINGTON, DC – Today, Congressman Josh Riley (NY-19) and Congressman Jeff Van Drew (NJ-02) introduced the FAIR Data Act, bipartisan legislation to stop data center projects from driving up energy bills for Upstate New York families and small businesses.
Massive data center projects, which demand huge amounts of electricity, are moving ahead across Upstate New York and the country. Serving them requires costly grid upgrades, and under current rules utility companies can pass those costs on to everyday ratepayers instead of the companies driving the demand. In the first half of 2025 alone, utilities across the country requested more than $29 billion in electricity rate increases – nearly double what they sought the year before – as they scramble to make infrastructure upgrades and meet increased need.
Riley’s legislation ensures those costs are paid by the large corporate customers creating the demand, not the families, farmers and small businesses already struggling with rising utility bills.
“Upstate New Yorkers are already paying through the nose for electricity, and we shouldn’t have to pay a penny more so Big Tech can rake in record profits,” Riley said. “If out-of-state tech companies want to build data centers here, they can pay their own way – not stick Upstate families with the bill.”
“Artificial intelligence has the potential to do a lot of good for our country, but that growth must be handled responsibly,” said Congressman Van Drew. “Families and small businesses are already paying far too much for electricity, and they should not be hit with even higher bills because major data center projects require massive amounts of energy and new infrastructure. The FAIR Data Act makes sure the companies behind these projects cover those added costs instead of passing them on to ratepayers. I am proud to join Congressman Riley in putting the people we represent first.”
Several data center developments have been proposed across New York’s 19th Congressional District. In Lansing, Maryland-based TeraWulf is seeking to build a 300-to-400-megawatt AI data center at the former Cayuga Power Plant, and in Oneonta, a company called Eco-Yotta has pursued a rezoning for an AI data center on County Road Nine. Both projects have faced fierce local opposition.
Specifically, the FAIR Data Act would:
- Protect families and small businesses from subsidizing Big Tech: Ensures residential customers and small businesses are not forced to pay for electric grid upgrades needed to serve massive data centers.
- Keep costs where they belong: Requires investor-owned utilities to recover the costs of serving large data centers from those facilities—not from everyday ratepayers.
- Prevent cost-shifting: Prohibits utilities from passing along the costs of generation, transmission, and distribution upgrades built to accommodate very large data centers (75+ MW) onto households and small businesses.
- Support free-market principles: Ensures large corporate electricity users pay their own way instead of relying on cross-subsidies from residential customers.
- Strengthen state oversight: Uses the existing Public Utility Regulatory Policies Act (PURPA) framework to require state utility regulators to review and implement this consumer-protection standard while preserving state ratemaking authority.
- Promote accountability: If a data center claims it will lower local electricity bills, it must report annually on whether those promised savings actually materialized.
- Incentivize responsible regulation: Conditions certain Department of Energy (DOE) administrative assistance on states certifying that data center costs are not shifted onto residential and small business customers.
- Improve transparency: Requires the Federal Energy Regulatory Commission (FERC) to submit annual reports to Congress on how large data center electricity demand is affecting electric rates and grid reliability nationwide.
This legislation builds on Riley’s push to lower utility costs for Upstate New York families:
- February 13, 2025 — Introduced the Weatherization Enhancement and Readiness Act (H.R. 1355) to help families reduce energy usage and lower monthly utility bills
- September 18, 2025 — Introduced the Keep the Lights Local Act (H.R. 5487) to ban foreign corporations and governments from owning American utility companies
- December 10, 2025 — Introduced the No Bonuses for Utility Executives Act (H.R. 6590) to prohibit utility executives from receiving bonuses when they raise rates faster than inflation
- April 17, 2026 — Introduced the No Taxes on Utility Bills Act (H.R. 8350) to allow Upstate New Yorkers to to allow taxpayers to deduct taxes and state-mandated surcharges included on their gas and electric utility bills.
- April 29, 2026 — Introduced the Lowering Utility Bills Act (H.R. 8568) to crack down on utility companies overcharging customers.
- 2025–2026 — Served as an intervener in the Central Hudson and NYSEG rate cases, where he participated in proceedings and cross-examined utility companies on behalf of ratepayers.
Full text of the bill can be found HERE.
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