BILL ANALYSIS

HR9655

BEARISH

To amend the Public Utility Regulatory Policies Act of 1978 to add a standard prohibiting the recovery of costs associated with data centers by certain electric utilities, and for other purposes.

HR9655 (To amend the Public Utility Regulatory Policies Act of 1978 to add a standard prohibiting the recovery of costs associated with data centers by certain electric utilities, and for other purposes.) has been assessed with a bearish outlook for investors. The primary sectors impacted are Utilities and Technology. View the full bill text on Congress.gov.

bearish

Market Sentiment

4/10

Impact Score

Sectors Impacted

Key Takeaways for Investors

HR9655 proposes a PURPA amendment prohibiting utilities from recovering data-center costs, benefiting data center operators and pressuring utilities.

Data center REITs $EQIX and $DLR are primary beneficiaries due to reduced electricity expenses.

Utilities $NEE, $DUK, and $SO face regulatory risk and potential revenue loss if the bill advances.

Bill is at early stage (referred to committee); low probability of near-term passage.

How HR9655 Affects the Market

The bill, if enacted, would structurally lower operating costs for data center operators, potentially lifting earnings for $EQIX and . For utilities, the inability to recover data-center costs could pressure rate base growth and earnings, particularly for those with significant data center exposure. Given the early stage, market reactions are muted, but any committee advancement would likely trigger sector rotation.

Bill Details

Metric	Value
Bill Number	HR9655
Market Sentiment	bearish
Event Date	July 13, 2026
Affected Sectors	Utilities, Technology
Source	View on Congress.gov →

Summary

HR9655 is an early-stage bill proposing a PURPA amendment to prohibit electric utilities from recovering data-center-related costs. If enacted, it would reduce electricity expenses for data center operators, benefiting REITs like $EQIX and $DLR, while pressuring utility margins at $NEE, $DUK, and $SO. Given the early stage (referred to committee), passage is uncertain but worth monitoring.

⚡ Government Convergence

AI Compute / Datacenter PowerConvergence score 65 · 3 channels · 9 events

Over the last 90 days, 9 separate government actions have converged on AI Compute / Datacenter Power. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 7 bills, 1 procurement notices and 1 insider buys — it's the clearest early tell that Washington is committing to ai compute / datacenter power, the kind of build-up that reshapes the sector well before it's obvious in the headlines.

Converging government actions

Procurement noticeY1DA--573-21-106 EHRM Infrastructure Upgrades and Data Center Construction - Gainesville VAMC · 2026-06-26
BillTo amend the Public Utility Regulatory Policies Act of 1978 to add a standard prohibiting the recovery of costs associated with data centers · 2026-07-13
BillCREATE AI Act of 2025 · 2026-06-25
BillTo amend the National Artificial Intelligence Initiative Act of 2020 to establish a center on artificial intelligence to ensure continued Un · 2026-06-18
BillTo require an assessment of the environmental and public health effects of data centers, and for other purposes. · 2026-07-09
BillTo direct the Director of the National Institute of Standards and Technology to develop best practices for measuring data center energy use, · 2026-06-18
Insider buyInsider buy: FTAI Infrastructure Inc. ($45,800) · 2026-05-28
BillTo facilitate the responsible development of data centers and related infrastructure, to protect existing ratepayers from the shifting of in · 2026-06-24

Full AI Market Analysis

On July 13, 2026, Rep. Riley (D-NY) introduced HR9655, which amends the Public Utility Regulatory Policies Act (PURPA) to add a standard that prohibits certain electric utilities from recovering costs associated with data centers. The bill has one cosponsor (Rep. Van Drew, R-NJ) and was referred to the House Energy and Commerce Committee. At this stage, the bill is in early legislative phase with no markup or hearings scheduled. The bill does not appropriate any funds; it establishes a regulatory standard. If passed, utilities subject to PURPA would be barred from passing data-center-related infrastructure and service costs to data center customers. This effectively shifts the cost burden onto other ratepayers or requires utilities to absorb them. The primary economic impact is lower electricity costs for data centers, which are heavy power consumers. Data center REITs like Equinix ($EQIX) and Digital Realty list electricity as their largest operating expense (~30% of revenue for EQIX). Lower power costs would directly improve margins and competitive positioning. Conversely, investor-owned utilities such as NextEra Energy ($NEE), Duke Energy ($DUK), and Southern Company ($SO) face pressure on revenue recovery from data center loads. For $NEE, both its regulated (FPL) and competitive (NextEra Energy Resources) arms could be affected. $DUK and $SO operate mainly in non-RTO states, but still subject to PURPA if they are retail utilities. The bill has bipartisan sponsorship, but as a standalone amendment it faces long odds in a divided Congress. No companion Senate bill exists. Legislative steps—committee markup, floor vote, Senate passage, and presidential action—remain. The earliest possible enactment is late 2026 or beyond. Currently, the impact is low; but if it gains momentum, the sector implications are significant.