Energy Infrastructure: House E&C Kicks Off Legislative Data Center Costs Debate

Research evidence excerpt

Energy Infrastructure: House E&C Kicks Off Legislative Data Center Costs Debate

TD Securities (USA) LLC POLICY NOTE

June 24, 2026

■WRG Energy Transition & Sustainability Energy Infrastructure: House E&C Kicks Off

Legislative Data Center Costs Debate

John Miller THE TD COWEN INSIGHT

202 868 5306

House E&C Subcommittee to consider data center and electric grid bills.

john.p.miller@tdsecurities.com

■Hearing is responsive to affordability-linked political pressure into midterms.

Cooper Pryde

212 468 7804 ■Two data center legislative camps emerging: cost allocation vs moratoriums.

cooper.pryde@tdsecurities.com

■Bipartisan agreement on leveraging existing grid, but split remains on federal siting

authority.

Sector Impacts: Data Centers, Utilities, Industrials (Grid Equipment)

What Happened?

Today, House E&C Energy Subcommittee will consider seven bills addressing data centers and

electric transmission.

■Memo (HERE).

■Streaming link (HERE).

What's Our View?

Our three key points:

■Affordability-Linked Pressure - We tend not to highlight subcommittee markups as the

legislative path forward is long, unclear, and often (as in the case with today's bills) unlikely

in the current (119th) Congress. That said, into the 2026 midterm elections, affordability-

linked political pressure is real and demanding of action. We view today's markup as a

Rep response to that pressure and a signal that efforts to legislate on both data center

infrastructure and AI models will become a key theme in the next (120th) Congress.

■Cost Allocation vs. Moratoriums - We see two policy camps, with the progressive left

pushing for data center moratoriums, while Reps and (some) centrist Dems focus on cost

allocation (preventing data center-related cost shifts to residential ratepayers). In our