Technology

GOP Leadership Blocking Data Center Legislation Until After Election, Cuellar Says

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WASHINGTON, D.C. — House Republican leadership is actively blocking federal legislation aimed at regulating the rapid expansion of commercial data centers until after the November general election, according to U.S. Rep. Henry Cuellar.

Speaking following discussions with congressional leaders, the Laredo Democrat revealed that Republican floor managers are refusing to bring forward data center oversight measures — including his own proposed “Ratepayer Bill of Rights” — due to top-level partisan reluctance to pass restrictions on tech industry developers.

“I’ll be very straight up honest,” Cuellar told the Rio Grande Guardian. “The ranking member of [the Energy and Commerce Committee] told me that the Republican leadership doesn’t want to put any data center bills up before the election.”

Cuellar added that House leadership is taking a hard line against regulating the industry. “From the very top, they’re saying you can’t be against data centers,” Cuellar said. “We have a very different opinion on that.”

The legislative stalling comes just weeks after Cuellar unveiled his landmark "Ratepayer Bill of Rights of 2026," a proposed federal framework designed to shield South Texas families, farmers, and small businesses from absorbing the sky-rocketing utility and infrastructure costs associated with resource-intensive tech facilities.

Stalled Momentum in Washington

According to Cuellar, even less restrictive, bipartisan consensus bills that have already cleared committee are being held back.

“There’s one bill that’s very bipartisan that we’re trying to get up there that got out of committee already that provides some guidance,” Cuellar explained. “It’s not the same as my bill. Mine’s definitely a lot stronger, but we’ll see if they’ll put that up.”

With Congress scheduled to recess shortly before returning for a brief session in late September, Cuellar acknowledged that substantive reform will likely have to wait until early next year.

“Basically, we might have to wait till January for a new majority, and you’ll see my Bill of Rights is one of the legislations that we hope to pass on that,” Cuellar said, noting that if GOP leaders decide to bring up minor bills under a suspension of the rules, attaching his stronger protections would be procedurally difficult.

State Capitol Partnership

While federal action faces a roadblock in the House, Cuellar’s federal proposal is being adapted for action at the state level in Austin.

Cuellar confirmed he has been in direct communication with State Rep. Richard Peña Raymond (D-Laredo), who is utilizing the federal Ratepayer Bill of Rights as a template for state legislation in the Texas House of Representatives.

“I did talk to Richard Raymond, state rep from my hometown, and he’s looking at my bill as a template to do something at the state level also,” Cuellar said. “So we’ll have a state version that Richard Raymond’s looking at.”

Raymond has previously called on Gov. Greg Abbott to convene a special legislative session to address data center resource consumption and grid reliability.

The Push for Consumer Protections

Cuellar’s legislative push follows growing alarm across South Texas — spanning Webb, Zapata, and Atascosa counties down into the Rio Grande Valley — regarding the heavy electric grid draw and municipal water consumption required by massive data centers.

First detailed in mid-August, Cuellar’s 10-point Ratepayer Bill of Rights mandates complete utility transparency, strictly prohibits utilities from shifting infrastructure expansion costs onto local households and agricultural producers, and establishes a mandatory complaint process with a 90-day refund guarantee if local utility rates spike due to tech developments.

Despite the current legislative impasse in Washington, Cuellar maintained that changing majorities in January would clear the path for federal passage.

“Unfortunately, Republicans control the floor,” Cuellar said. “Once we win the majority, then we will control the floor and we’ll put some of these good bills on the floor.”