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.
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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, 64 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, 23 procurement notices, 8 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
- 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
- Procurement noticeY1DA--573-21-106 EHRM Infrastructure Upgrades and Data Center Construction - Gainesville VAMC · 2026-08-28
- Procurement noticeY1DA--573-21-106 EHRM Infrastructure Upgrades and Data Center Construction - Gainesville VAMC · 2026-08-31
- PatentPatent: Microsoft Technology Licensing, LLC — HYBRID FLEXIBLE ENERGY SOLUTION USING GEOTHERMAL AND HYDROGEN FOR DATA CENTER APPLICATIONS · 2026-09-01
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
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
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.
MATCH Act of 2026
CREATE AI Act of 2025
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.
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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