FAIR Data Act

The FAIR Data Act prevents investor-owned electric utilities from passing the costs of large data centers onto residential and small business customers through higher rates. This rule applies specifically to data centers with a peak power demand exceeding 75 megawatts, excluding upgrades to the power grid made to support these facilities. State regulators are required to review and implement this cost-recovery restriction within a year, while the Department of Energy must verify that states comply before receiving federal administrative funds. Additionally, the Federal Energy Regulatory Commission will submit an annual report to Congress detailing how these data centers impact electricity rates and grid reliability.