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, 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. ($45,800) · 2026-05-28
- BillTo facilitate the responsible development of data centers and related infrastructure, to protect existing ratepayers from the shifting of in · 2026-06-24
Full Analysis
On July 13, 2026, Rep. Riley (D-NY) introduced HR9655, which amends the Public Utility Regulatory Policies Act (PURPA) to add a standard that prohibits certain electric utilities from recovering costs associated with data centers. The bill has one cosponsor (Rep. Van Drew, R-NJ) and was referred to the House Energy and Commerce Committee. At this stage, the bill is in early legislative phase with no markup or hearings scheduled.
The bill does not appropriate any funds; it establishes a regulatory standard. If passed, utilities subject to PURPA would be barred from passing data-center-related infrastructure and service costs to data center customers. This effectively shifts the cost burden onto other ratepayers or requires utilities to absorb them. The primary economic impact is lower electricity costs for data centers, which are heavy power consumers.
Data center REITs like Equinix ($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
CREATE AI Act of 2025
To amend the National Artificial Intelligence Initiative Act of 2020 to establish a center on artificial intelligence to ensure continued United States leadership in research, development, and evaluation of artificial intelligence systems, and for other purposes.
To direct the Director of the National Institute of Standards and Technology to develop best practices for measuring data center energy use, study data availability for the purpose of improving energy demand forecasting capabilities, and for other purposes.
To require an assessment of the environmental and public health effects of data centers, and for other purposes.
To facilitate the responsible development of data centers and related infrastructure, to protect existing ratepayers from the shifting of incremental infrastructure costs attributable to large-load facilities, to encourage investment in water reuse, and for other purposes.
Artificial Intelligence Data Center Moratorium Act
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
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Ushering in the Next Frontier of Quantum Innovation
This executive order updates the National Quantum Strategy and establishes a national effort (QC-ADDS) to develop a quantum computer for scientific discovery, with deployment at a Department of Energy facility. It directs multiple agencies to prioritize quantum sensing, networking, and supply chain initiatives, and mandates plans for commercial readiness and national security applications.
Securing the Nation Against Advanced Cryptographic Attacks
This executive order mandates a nationwide transition of federal information systems and critical infrastructure to post-quantum cryptography (PQC) by specific deadlines (2030 for key establishment, 2031 for digital signatures), directs NIST to lead technical guidance and a pilot project, requires agencies to appoint PQC migration leads, and orders the Federal Acquisition Regulatory Council to propose rules requiring contractors to comply with NIST PQC standards by 2030.
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