Senate Advances Early Draft of Bill Affecting AI Data Center Power

The US Senate approved an early version of the BAAJA bill to address electricity supply and other power industry issues.

The bill sets out a path for new power generation at data centers and changes to how transmission is built.

The source says the proposals could enable 40 to 50 gigawatts of gas-fired generation at planned facilities.

It argues that the bill could limit challenges from state officials and tribal authorities and weaken existing air and water pollution rules.

The overall effect on the power grid and electricity prices is still uncertain, and data centers may produce power at prices that are not competitive for much of the year.

In Texas, many solar, battery and wind projects have requested grid connections, but not all are expected to be built.

The bill is an early draft that may be revised several times or fail in the newly reconstituted House of Representatives.