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.
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.
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Key Takeaways
- 1.HR9655 proposes a PURPA amendment prohibiting utilities from recovering data-center costs, benefiting data center operators and pressuring utilities.
- 2.Data center REITs $EQIX and $DLR are primary beneficiaries due to reduced electricity expenses.
- 3.Utilities $NEE, $DUK, and $SO face regulatory risk and potential revenue loss if the bill advances.
- 4.Bill is at early stage (referred to committee); low probability of near-term passage.
Market Implications
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.
⚡ Government Convergence
This signal is one of the converging government actions below.
Over the last 90 days, 62 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 — 28 bills, 22 procurement notices, 8 federal contracts, 3 SEC filings and 1 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
- Procurement noticeY1DA--534-24-706 EHRM Data Center Upgrades Construction - Charleston · 2026-07-21
- 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 · 2026-08-05
- Procurement notice7C20--Data Center and Telecommunications Modernization (VA-26-00039374) · 2026-08-05
- BillRatepayer Bill of Rights Act of 2026 · 2026-08-24
- Procurement noticeFull Start-Up Commissioning of Data Center Cooling Infrastructure and UPS Battery Replacement · 2026-08-25
- BillTo prohibit the provision of federal financial benefit for the construction, expansion, or substantial rehabilitation of data centers on prime farmland and other certain farmland. · 2026-08-27
Full 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.
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
PURPA amendment prohibits electric utilities from recovering costs associated with data centers
Who must act
Retail electric utilities subject to PURPA
What happens
Utilities cannot pass data-center-related infrastructure and service costs to data center customers, reducing data centers' electricity expenses
Stock impact
EQIX's largest operating cost is electricity (~30% of revenue); lower power costs improve margins and net income, enhancing competitive positioning
What the bill does
Prohibition on cost recovery for data centers applies to utilities like NEE's regulated and competitive arms
Who must act
NEE's electric utility subsidiaries (FPL, NextEra Energy Resources)
What happens
NEE cannot charge data center customers for grid upgrades or dedicated infrastructure, shifting costs to other ratepayers or reducing revenue
Stock impact
NEE's revenue from data center customers could be pressured; FPL's rate base may not recover certain investments, slowing earnings growth
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
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Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Declaring a National Emergency to Secure the United States Bulk-Power System
This executive order declares a national emergency to restrict foreign-produced bulk-power system electric equipment that poses national security risks, prohibiting new transactions involving equipment from covered foreign entities and allowing the Secretary of Energy to impose conditions on existing equipment. It directs the Secretary of Energy, in coordination with multiple agencies, to identify, mitigate, and potentially replace risky equipment, and establishes a pre-qualification list for approved vendors.
The National Space Transportation Policy
This memorandum directs multiple agencies to expand and modernize U.S. space launch and reentry infrastructure to support over 1,000 launches annually by 2030, expedite permitting and environmental reviews, develop new federal reentry sites, and strengthen the space transportation industrial base. It mandates range scheduling transparency, spectrum reliability, and workforce development, with specific reports and plans due within 90 to 240 days.
Adjusting Imports of Unmanned Aircraft Systems and Unmanned Aircraft Systems Components into the United States
This proclamation imposes a 100% ad valorem tariff on imports of unmanned aircraft systems (UAS) over 25 kg, those with thermal imagers, docking stations, and certain components, and a 25% tariff on UAS under 25 kg and other components, citing national security under Section 232 of the Trade Expansion Act. It also authorizes the Department of Commerce to establish an onshoring program offering preferential tariff treatment for companies that build new U.S. manufacturing facilities for UAS and components.
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