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, 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 — 30 federal contracts, 27 bills, 3 patents and 2 SEC filings — 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
- ContractSKYWARD DYNAMICS INFORMATION TECHNOLOGY, LLC: THE RESEARCH DATA DEVELOPMENT GROUP (RDDG) WITHIN THE OFFICE OF ENTERPRISE DATA AND ANALYTICS (OEDA) SUPPORTS THE AGENCY'S MISSION BY OPERAT · 2024-12-18
- ContractINTERNATIONAL BUSINESS MACHINES CORPORATION: AWARD, ARCHITECTURE ENGINEERING SUPPORT (AES) SERVICES, USCIS ENTERPRISE INFRASTRUCTURE DIVISION. EXCLUSION 2(D). CONTRACTOR SUPPORT TO DESI · 2025-08-08
- ContractPERATON ENTERPRISE SOLUTIONS LLC: DATA CENTER BRIDGE VI ORDER FOR CONTINUITY OF OPERATIONS · 2025-09-30
- ContractTHE TREVINO GROUP, INC.: THE CONTRACTOR TO PROVIDE LABOR, PROJECT MANAGEMENT, MATERIALS, TOOLS, SUPPLIES, AND EQUIPMENT TO PROVIDE INFRASTRUCTURE IMPROVEMENTS (ELECT · 2025-11-04
- BillData Center Transparency Act · 2026-01-08
- ContractAIR SPACE INTELLIGENCE, INC: THE FEDERAL AVIATION ADMINISTRATION (FAA) WILL BE PROVIDED WITH FLOW MANAGEMENT DATA AND SERVICES (FMDS), A NEW SYSTEM TO PROVIDE TRAFFIC FL · 2026-06-23
- SEC filingBREX Net Lease Data Center I DST · 2026-08-03
- ContractFREQUENTIS USA, INC: $282M Department of Transportation Contract · 2026-09-01
- ContractFREQUENTIS USA, INC: $594M Department of Transportation Contract · 2026-09-22
- ContractIMPRES TECHNOLOGY SOLUTIONS, INC: NUTANIX DATACENTER REFRESH · 2026-09-28
- ContractTHE VIRGINIA DEPARTMENT OF ENERGY: $197M Department of Energy Grant · 2026-09-29
- BillData Center Transparency Act of 2026 · 2026-09-30
- ContractSCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $311M Department of State Contract · 2026-10-05
- BillMake Data Centers Pay Act · 2026-10-13
Full Analysis
The No Harm Data Centers Act (HR8033), introduced by Rep. Landsman (D-OH) on March 20, 2026, was referred to the House Energy and Commerce Committee. It would amend the Federal Power Act to give FERC exclusive authority over retail electric rates for data centers with peak demand over 50 MW. The bill's stated intent is to prevent residential and small commercial customers from subsidizing the grid costs imposed by data centers.
There is no funding authorization; the bill imposes a regulatory change. If enacted, FERC would set rates based on cost of service, likely increasing electricity costs for data centers currently benefiting from lower industrial rates. The legislative path is long: committee markup, House vote, Senate companion bill, and presidential signature. Given the current 119th Congress (2025-2027), the bill is in early stages and faces significant hurdles.
For data center REITs like Equinix ($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
FREQUENTIS USA, INC: $282M Department of Transportation Contract
THE VIRGINIA DEPARTMENT OF ENERGY: $197M Department of Energy Grant
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $311M Department of State Contract
Fusion Data Centers Inc.
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Streamlining Access to Government Services Through America.gov
The executive order directs the General Services Administration to create America.gov, a unified digital portal for federal services, integrating Login.gov for authentication and requiring agencies to expose their digital services via APIs. It also mandates the use of AI (referred to as 'super intelligence') with transparency safeguards, while preserving existing service channels and excluding tax and defense/intelligence services.
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.
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