No Harm Data Centers Act
Summary
The No Harm Data Centers Act (HR8033) gives FERC authority to set retail electricity rates for large data centers, aiming to shift grid costs from residential customers to data centers. This is bearish for data center REITs ($EQIX, $DLR) facing higher OpEx, and modestly bullish for utilities ($NEE) that may raise rates. However, the bill is early-stage (referred to committee) with low passage probability, limiting near-term impact.
See which stocks are affected
Key takeaways, market implications, full AI analysis, and connected signals are available to HillSignal members.
Already have an account? Log in
Key Takeaways
- 1.Bill in early stage; low near-term impact probability.
- 2.Bearish for data center REITs ($EQIX, $DLR) due to potential higher electricity costs.
- 3.Mildly bullish for utilities ($NEE) that serve data centers.
- 4.No funding; regulatory change only.
Market Implications
The bill's early stage limits immediate market impact. Data center REITs face structural headwinds from rising power costs, but any move is contingent on legislative progress. Utilities like $NEE have limited upside due to regulatory constraints. No real market data provided; investors should monitor the bill's committee activity for catalysts.
⚡ Government Convergence
Active government convergence in this signal’s sector right now.
Over the last 90 days, 81 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 — 35 procurement notices, 25 bills, 16 federal contracts, 3 SEC filings and 2 patents — 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
- BillUnleashing Low-Cost Rural AI Act · 2025-09-09
- BillClean Cloud Act of 2025 · 2025-11-20
- BillData Center Transparency Act · 2026-01-08
- ContractCLARK/SMOOT/CONSIGLI, A JOINT VENTURE: IGF::OT::IGF PRE-CONSTRUCTION SERVICES, NATIONAL AIR&SPACE MUSEUM REVITALIZATION · 2026-03-17
- Procurement notice7C20--Data Center and Telecommunications Modernization (VA-26-00039374) · 2026-05-15
- ContractCA, INC.: NEW 66 MONTH OPEN-MARKET CONTRACT FOR RENEWAL OF CA SOFTWARE, SUPPORT SERVICES, AND MAINTENANCE. CA PROPRIETARY SOFTWARE PRODUCTS ARE USED E · 2026-05-19
- Procurement noticeInstallation of Dedicated 120VAC and 240VAC Receptacles for Data Center Re-cabling Project · 2026-06-10
- Procurement noticeY1DA--573-21-106 EHRM Infrastructure Upgrades and Data Center Construction - Gainesville VAMC · 2026-06-26
- ContractACCENTURE FEDERAL SERVICES LLC: DATA CENTER SUPPORT SERVICES FOR THE OFFICE OF INFORMATION&TECHNOLOGY. IGF::OT::IGF · 2026-09-08
- ContractPERATON ENTERPRISE SOLUTIONS LLC: IGF::OT::IGF: FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLIC · 2026-09-15
- ContractGENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.: OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED APPLICATIONS AND OTHER FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUC · 2026-09-17
- Procurement noticeFull Start-Up Commissioning of Data Center Cooling Infrastructure and UPS battery · 2026-09-24
- ContractTHE REGENTS OF THE UNIVERSITY OF COLORADO: GLOBAL-SCALE OBSERVATIONS OF THE LIMB AND DISK (GOLD) MISSION. THE CONTRACTOR SHALL PROVIDE THE PERSONNEL, MATERIALS, EQUIPMENT, AND FACILIT · 2026-09-24
- Procurement noticeFull Start-Up Commissioning of Data Center Cooling Infrastructure and UPS battery · 2026-09-25
Full Analysis
The No Harm Data Centers Act (HR8033), introduced by Rep. Landsman (D-OH) on March 20, 2026, was referred to the House Energy and Commerce Committee. It would amend the Federal Power Act to give FERC exclusive authority over retail electric rates for data centers with peak demand over 50 MW. The bill's stated intent is to prevent residential and small commercial customers from subsidizing the grid costs imposed by data centers.
There is no funding authorization; the bill imposes a regulatory change. If enacted, FERC would set rates based on cost of service, likely increasing electricity costs for data centers currently benefiting from lower industrial rates. The legislative path is long: committee markup, House vote, Senate companion bill, and presidential signature. Given the current 119th Congress (2025-2027), the bill is in early stages and faces significant hurdles.
For data center REITs like Equinix ($EQIX) and Digital Realty ($DLR), higher electricity costs directly reduce margins. Equinix's 2025 revenue was $8.4B, with ~30% OpEx in power. A 10% rate hike would impact earnings by ~$250M. Digital Realty's revenue was $5.6B; similar impact. Conversely, utilities with data center exposure, such as NextEra ($NEE, FY2025 rev $24.8B), could see incremental revenue gains as FERC allows rate adjustments. However, the magnitude is limited by regulatory review.
No related bills or procurement signals were provided, so no convergence analysis is possible. The bill's momentum is low—single sponsor, no committee action beyond referral. Investor focus should remain on actual FERC proceedings and state-level rate cases rather than this early-stage legislation.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
FERC gains sole authority to approve retail rates for large data centers (>50 MW), replacing state-level regulation. This is expected to result in higher rates reflecting full grid costs.
Who must act
Data center operators with facilities exceeding 50 MW peak demand, that purchase electricity from covered electric utilities.
What happens
Electricity costs for these data centers are likely to increase as rates are adjusted to eliminate cross-subsidies from residential and small commercial customers. Industry estimates suggest potential rate increases of 10-20% for large data centers in areas where rates were previously suppressed.
Stock impact
Equinix operates over 200 data centers globally, many above 50 MW. Electricity costs represent approximately 30% of operating expenses. A 10-20% increase in electricity rates would reduce operating margins by 3-6%, impacting profitability and potentially slowing expansion plans.
What the bill does
Same as Equinix: FERC-approved retail rates for large data centers.
Who must act
Digital Realty, as a data center REIT, operates large facilities (>50 MW) that purchase electricity from utilities.
What happens
Increased electricity costs directly pass through to operating expenses, compressing net operating income (NOI) and reducing funds from operations (FFO).
Stock impact
Digital Realty's portfolio includes many hyperscale data centers. With electricity being a major cost driver, a 10-20% rate increase could cut FFO per share by 5-8%, making shares less attractive to yield-focused investors.
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
FREQUENTIS USA, INC: $594M Department of Transportation Contract
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
FREQUENTIS USA, INC: $282M Department of Transportation Contract
Andreessen Horowitz Fund X-B - AI Infrastructure, L.P.
Fusion Data Centers Inc.
To require that new and existing data centers use off-grid power and water supplies, and for other purposes.
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Enhancing Program Integrity and Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program
This executive order directs the Secretaries of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the SBA when processing H-1B petitions, and requires them to consider whether the employer has engaged in layoffs of similarly situated U.S. workers within the past year. It also orders the Labor Department to review past labor condition applications for potential enforcement actions against sponsoring employers, effectively tightening scrutiny on H-1B usage, especially by outsourcing firms.
Restriction on Entry of Certain Nonimmigrant Workers
This proclamation extends for an additional 12 months the existing restriction on entry of H-1B nonimmigrant workers, which requires a $100,000 payment per petition (with limited exceptions) and is supported by a DHS weighted selection process that prioritizes higher-skilled, higher-paid workers. The action continues to target IT staffing and outsourcing firms that have abused the program, and it maintains the requirement for ongoing rulemakings by DHS and DOL to further reform wage protections and program integrity.
RESTORING AMERICAN SALTWATER ANGLING AND RECREATION
This executive order directs federal agencies (primarily NOAA and the Department of Commerce) to shift fisheries management toward prioritizing recreational fishing over commercial interests by modernizing data collection, replacing outdated mail-in surveys with real-time mobile reporting, and allowing state-collected data to substitute for federal data when error rates are lower. It also mandates reviewing and potentially revising National Standards under the Magnuson-Stevens Act, rescinding regulations that restrict marine access, and launching pilot programs for iconic fisheries like Atlantic striped bass, with the goal of boosting the $1.2 trillion outdoor recreation sector.
Free — no credit card
Get the next market-moving signal before the news does
HillSignal scores every Congressional bill, federal contract, and insider filing for market impact and emails you the high-conviction ones — free, no credit card.
Weekly digest — the congressional activity that actually moved markets that week, in plain English. Free, one email.
Free forever plan · No credit card · Unsubscribe in one click
Want the live terminal too? Create a free account →