Senate Democratic Leader Chuck Schumer (N.Y.) is maneuvering to block a Republican-backed bill aimed at shielding ratepayers from AI-driven data center costs, but his caucus is fractured after House Democrats voted overwhelmingly for the measure. The impending floor fight carries significant weight in the Ohio Senate race, where Democratic challenger Sherrod Brown has made Husted's pro-data-center record a central campaign issue.
The legislation, known as the Ratepayer Protection Act, was introduced by Sen. Jon Husted (R-Ohio) and passed the House on Sept. 16 by a 417-3 margin, with only three House Democrats voting against it. Senate Democrats acknowledge the need to address rising energy costs from data centers but view Husted's bill as a political lifeline for the incumbent, who is trailing in polls.
“It seems like it’s kind of a political bailout,” said Sen. Tina Smith (D-Minn.), noting the political damage Husted has faced from ads portraying him as “the face of data centers” who granted “sweetheart tax deals.” A YouGov poll of 1,000 likely Ohio voters found 75% oppose data center construction in their communities, and 47% say a candidate's stance on data centers is extremely or very important to their vote. Brown has spent over $430,000 on online ads highlighting the issue, according to Absecon Group.
Senate Majority Leader John Thune (R-S.D.) is expected to file a cloture motion Monday, setting up a procedural vote Wednesday. Republicans argue the overwhelming House support pressures Democrats to advance the bill. But Schumer dismissed it as a “fraud,” saying it's voluntary and lacks teeth, while touting a stronger mandatory alternative.
“Sen. Husted’s bill is a fraud, it’s voluntary, no company has to do it. The bill we have is mandatory. It is much stronger, and it is what is needed,” Schumer said.
Sen. Martin Heinrich (D-N.M.), who blocked the bill last week, echoed that criticism, arguing it “does nothing to meaningfully address the rising costs of AI data center development” and relies on a voluntary framework that fails to require data centers to pay full energy costs. Husted's spokesperson, Olivia Tripodi, countered that the bill would “force” data centers to “pay their own way” by establishing a federal standard for state regulation.
Some Democrats, however, see the bill as a modest step worth debating. Sen. Chris Van Hollen (D-Md.) called it “a tiny step forward” but warned against missing an opportunity to strengthen it. He proposed his own Power for the People Act, which would direct states to consider separate electricity rate classes for data centers and require FERC to ensure they pay for transmission upgrades. Van Hollen favors voting to proceed to Husted's bill but blocking final passage unless significant amendments are allowed.
That strategy, however, runs counter to Schumer's approach, which has avoided letting bills gain momentum. Husted warned that Democrats would be politically defensive if they block the bill, noting that House Minority Leader Hakeem Jeffries and Rep. Alexandria Ocasio-Cortez, both Democrats, supported it. “Democrats all on the House side voted for it and thought it was a great bill,” he said.
The showdown underscores the broader Democrats' strong polling in key races, but the Ohio contest remains tight. As new polls show Democrats ahead in Michigan and New Hampshire, Ohio could hinge on how voters perceive Husted's data center stance. The vote also tests Schumer's leadership as he tries to unify a caucus with differing views on energy policy and political strategy.
