Senate approves data center permitting bill

The U.S. Senate voted 73-25 on Monday to advance bipartisan legislation designed to accelerate permitting reviews for data centers and other large-scale infrastructure projects. This action marks the first major legislative move since last week’s midterm elections, which resulted in a decisive shift in power to Democrats.

The bill aims to reduce the years-long delays currently facing energy projects seeking to connect to the grid. It applies to both clean energy and fossil fuel developments. A key provision ensures that artificial intelligence data centers bear the cost of the electricity they consume, a point of contention that drove many Democrats to support the measure.

President Donald Trump urged senators to pass the bill on Sunday, calling it a significant win for U.S. energy independence. He stated on social media that the legislation would allow the country to build pipelines, mines, and power plants faster, thereby lowering energy costs for American families. Industry groups from both the clean energy and oil and gas sectors have also voiced their support.

However, environmental organizations have criticized the deal. The Sierra Club and the National Wildlife Federation argue that the bill locks in fossil fuel development and weakens existing environmental safeguards. They contend it makes it more difficult for local communities to challenge project approvals by limiting judicial review and altering the National Environmental Policy Act.

Sens. Shelley Moore Capito and Mike Lee, joined by Sens. Martin Heinrich and Sheldon Whitehouse, negotiated the final version of the bill weeks before the election. Heinrich emphasized that the amended version requires federal agencies to consult with tribal leaders on projects affecting cultural sites. He noted that the changes also extend the window for states to object to agency reports.

Senate Majority Leader Hakeem Jeffries, who is expected to become House Speaker in January, said the bill falls short in several areas. Some Democrats prefer to use their new majority to pass legislation that prioritizes clean energy while limiting oil and gas expansion. Whitehouse countered that the current bill serves as a baseline for future climate work.

The bill now heads to the House, where its path may be complicated by the new majority. Sponsors argue that passing the measure now will save households billions of dollars and create jobs. Opponents, including Bradley Campbell of the Conservation Law Foundation, warn that rushing the bill through a lame-duck session could strip federal agencies of the power to prevent harm to the environment.