DeWine, GOP Governors Back Pledge to Shield Ratepayers from Data Center Costs

Ohio Gov. Mike DeWine on Thursday joined nearly half of the nation's governors in signing President Donald Trump’s Ratepayer Protection Pledge, a non-binding commitment aimed at ensuring that AI companies and data center operators—not consumers—bear the utility and infrastructure costs tied to new data centers.

The move comes as states weigh how to balance the rapid expansion of data centers, which drive up electricity demand, with protecting households and small businesses from higher utility bills. The White House said in a news release that reliable, large-scale data center infrastructure is critical for economic and national security, but emphasized that "the American people should not be footing the bill for the benefit of private companies."

"As demand for electricity continues to grow, we must protect consumers, strengthen our grid and ensure economic development is achieved without shifting costs onto the people we serve."

— Mike DeWine, Governor of Ohio

The Ratepayer Protection Pledge

The Ratepayer Protection Pledge, first announced in March, commits signatories to implement principles that prevent increased utility bills for consumers resulting from data center energy and infrastructure requirements. The White House stated, "they will pay these rates for the power and related infrastructure that are brought online to service their data centers, whether they use the electricity or not."

According to the White House, the pledge has been signed by governors from states including Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming—all led by Republicans. The addendum to the pledge affirms a commitment to protect consumers from price hikes and to lower electricity costs while supporting infrastructure for continued U.S. technological leadership.

Ohio’s Data Center Pause and National Context

In late May, DeWine announced a pause on new tax exemptions for data centers in Ohio, though he continued to praise the sector’s economic contributions. Ohio currently has about 200 data centers, ranking sixth nationally, with more planned, according to reporting cited by the Daily Signal. The state has become a hub for data center development, reflecting a broader national trend as demand for cloud computing and artificial intelligence grows.

The policy debate has intensified as lawmakers respond to concerns over rising energy costs. The expansion of data centers, which require significant electricity to operate and cool their servers, has led to questions about who should pay for the necessary upgrades to the power grid. Some state officials argue that without clear policies, the costs of new substations, transmission lines, and power generation could be passed on to residential ratepayers and small businesses.

Legislative Push in Congress

Sen. Jon Husted, R-Ohio—who previously served as DeWine’s lieutenant governor and was appointed to replace Vice President JD Vance—introduced the Ratepayer Protection Act this week. The bill would require states and public utility commissions to ensure that large electricity users like data centers pay for the power generation and infrastructure needed to serve their facilities, rather than shifting those costs to families or small businesses. The House companion bill is bipartisan, sponsored by Reps. Gabe Evans, R-Colo., and Kathy Castor, D-Fla.

Husted said, "If America wants to lead the world in AI and strengthen our national security, we have to build the energy infrastructure to support it. But we must do that without passing the costs on to working families and small businesses. The Ratepayer Protection Act would keep America globally competitive while protecting Ohioans and Americans from higher electricity bills."

Industry Response and Ongoing Debate

Industry advocates argue that data centers already contribute significantly to local economies and pay their fair share. Patrick Hedger, director of policy at NetChoice, told the Daily Signal that data centers provide jobs, property tax revenue, and "positive secondary effects," and stated, "It is already the law in all 50 states that public utility commissions cannot offload the cost of a large user onto the residential retail base. Data centers are paying their way."

Supporters of the pledge and legislation say the measures are necessary to prevent future cost-shifting as data center demand grows, while critics point to existing regulations and the sector’s economic benefits. The White House and state officials have not addressed concerns raised by industry advocates about potential regulatory overlap.

The debate over how to allocate the costs of expanding the nation’s energy infrastructure is likely to continue as demand for data centers increases. Lawmakers and regulators face the challenge of supporting technological growth and economic development while ensuring that consumers are not burdened with higher utility bills. The Ratepayer Protection Pledge and related legislation represent one approach to addressing these competing priorities, with the outcome likely to shape the future of energy policy and data center development in the United States.