PRICE Act
- Sponsor
- Rep. Menendez, Robert [D-NJ-8]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Jan 8, 2026
Bottom line
This bill imposes a significant, phased mandate on large data centers to become entirely self-sufficient in electricity generation, primarily using clean energy sources, aiming to reduce their impact on the public grid and promote renewable energy adoption.
What it actually does
This bill mandates that all large data centers in the United States must generate 100% of the electricity they consume annually. It further requires that a significant portion of this self-generated electricity come from clean energy sources, starting at 75% by January 1, 2035, and increasing to 100% by January 1, 2040. Non-compliant data centers face civil penalties of up to $100,000 per day.
Proponents argue
Supporters would argue that this bill addresses the rapidly growing energy consumption of data centers, preventing them from straining existing grids and contributing to rate inflation for consumers. By mandating on-site clean energy generation, it promotes energy independence for a high-demand sector and accelerates the transition to renewable energy, contributing to climate goals.
Opponents contend
Opponents might contend that this mandate places an enormous, potentially unfeasible, and costly burden on data centers, which could lead to increased operational costs, discourage investment in the U.S., or force facilities to relocate. They may argue it's an overreach that could destabilize the digital infrastructure and ultimately harm consumers through higher service costs.
The bill is very short and straightforward to read, but its implications are far-reaching and require significant consideration.
Section 1
Short Title
This section establishes the official short title of the Act as the "Preventing Rate Inflation in Consumer Energy Act" or the "PRICE Act," providing a common name for referring to the legislation.
Supporters argue
Supporters would argue that a clear and descriptive short title like the "PRICE Act" helps communicate the bill's intended purpose of preventing energy rate inflation to the public and stakeholders.
Critics contend
No specific opposition is typically raised against short titles, though critics might argue the title is misleading if they disagree with the bill's stated purpose or effectiveness.
Tradeoffs
The tension lies in choosing a title that is both concise and accurately reflects the bill's potentially complex impacts, rather than just its stated intent.
Section 2(a)
Mandate for Data Centers to Generate All Consumed Electricity
This core provision requires every data center in the United States to generate 100% of the electricity it consumes each year. This means data centers would need to install and operate their own power generation facilities sufficient to meet their entire annual electricity demand.
Section 2(b)
Phased Clean Energy Mandate for Data Center Generation
This provision introduces a phased requirement for the electricity generated by data centers. Starting January 1, 2035, at least 75% of their self-generated electricity must come from clean energy sources. By January 1, 2040, this increases to 100% clean energy.
Section 2(c)
Civil Penalties for Non-Compliance
This section establishes that any data center violating the electricity generation requirements will face a civil penalty of up to $100,000 per day until the violation is corrected. It also mandates the Secretary of Energy to create an administrative process for issuing these penalties within 30 days of the Act's enactment.
Section 2(d)
Definitions of "Clean Energy Source" and "Data Center"
This section defines key terms used in the Act. A "clean energy source" includes solar, wind, battery, green hydrogen, hydropower, and geothermal. A "data center" is defined as a facility described in section 453(a)(1) of the Energy Independence and Security Act of 2007 that consumes at least 50 megawatts each day.
The definition of "data center" relies on a cross-reference to section 453(a)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17112(a)(1)). This external reference defines a data center as "a building or portion of a building whose primary function is to accommodate the equipment used for processing, storing, and transmitting digital data and that has a designed maximum total power demand of 100 kW or greater."
Section 2(d)(2)(A)
Why it matters:This is standard legislative practice to avoid reprinting lengthy definitions and ensure consistency with existing law. However, it requires extra effort from the reader to fully grasp the bill's applicability.
Case for: Incorporating by reference streamlines the bill and ensures consistency with established legal definitions, avoiding potential conflicts or ambiguities that could arise from creating a new, slightly different definition.
Case against: Critics might argue that relying on external references makes the bill less accessible and transparent to the average reader, requiring legal research to understand its full scope.
Estimated impact: This reference, combined with the 50 MW daily consumption threshold in 2(d)(2)(B), significantly narrows the scope of affected data centers to only the largest, most energy-intensive facilities. The original EISA definition of 100 kW is much broader, but the 50 MW daily consumption filter is the dominant factor here.