Energy issues are front and center in Washington, D.C., and the states in the weeks leading up to the midterm elections. Rising electricity costs, rapid data center development, and evolving AI technologies are fueling debates over grid reliability, infrastructure investment, tax policy, and job impacts.

State of Play

• The House is expected to vote next week on the bipartisan Ratepayer Protection Act, which would require technology companies to cover energy infrastructure costs associated with their data centers rather than pass them on to consumers. (Axios | Politico, Sept. 10)

• The North American Electric Reliability Corporation (NERC) is developing reliability standards for large “computational loads,” including data centers and cryptocurrency facilities. (NERC Project 2026-02)

• The proposed standards address data-center interconnections, grid-impact studies and modeling, information sharing and records of disturbances such as sudden load losses or voltage drops. (Roundtable Weekly, July 17 | 24 | Aug. 7)

• RER is working with members and coalition partners on comments addressing NERC’s proposed Definitions, Registration Criteria, and Reliability Standards ahead of the Sept. 18 comment deadline. (E&E News, July 17)

Why It Matters

• As federal policies evolve, regulators must distinguish between data-center ownership and operations. Requirements should track which parties control facility operations, possess relevant data, and are responsible for managing grid impacts due to intensive “computational loads” from activities like cloud computing, AI modeling, and crypto mining.

• NERC’s imminent data center owner and operator rules should also respect leasing arrangements at these facilities. Hyperscalers and other AI tenants in leased spaces should have affirmative obligations to share relevant data, such as their electricity usage and water consumption, with facility owners that may have reporting obligations.

Data Center Tax Proposals

• Senate Finance Committee Ranking Member Ron Wyden (D-OR) recently released a framework that restricts Opportunity Zone (OZ) investments and bonus depreciation for new data centers, changes the treatment of certain data-center rents under the REIT rules, and establishes a federal excise tax on operators’ gross receipts. (Senate Finance Committee, Aug. 6 | Roundtable Weekly, Aug. 7 | GlobeSt. Sept. 8)

• A recent Bipartisan Policy Center analysis outlined significant questions surrounding proposals to tax AI, including which activities should be taxed, who would ultimately bear the cost, and whether new taxes could discourage investment or innovation. (Bipartisan Policy Center, Aug. 24)

• A separate Cato Institute analysis warned that an excise tax based on revenue rather than profits could impose especially high effective tax rates on lower-margin data-center operators and discourage new development. (Cato Institute, Sept. 3)

• RER Advocacy: RER’s Tax Policy Advisory Committee is preparing comments on the Wyden framework. Maintaining the owner-operator distinction is critical to preventing provisions aimed at hyperscalers from penalizing real estate owners that do not control facility operations.

Data Centers & CRE By the Numbers

• A new National Association of Realtors report found that 50% of surveyed agents with a data center in their market reported higher nearby commercial property values, while 42% cited increased demand for commercial space. Industrial properties saw the strongest gains in interest at 58%. (CoStar | Housing Wire, Sept. 9)

• Recent reports from JLL and CBRE found that North American data-center demand reached record levels in the first half of 2026, doubling from the previous year and increasing fivefold from the same period in 2024. (BisNow, Sept. 3)

California Building Performance Standards (BPS)

• On Aug. 18, RER submitted comments to the California Energy Commission on its strategy for developing future statewide building performance standards. (RER Letter, Aug. 18)

• The comments provide a national perspective on BPS policies and draw from RER’s peer-reviewed 20-Point Guide for Fair and Reasonable Building Performance Standards Laws.

• RER also coordinated with the California Business Properties Association and California Building Industry Association to align its recommendations with a broader coalition letter joined by AHLA, BOMA International, CREDA, ICSC and Nareit. (Coalition Letter, Aug. 18)

• In July, RER also submitted comments urging the Department of Energy (DOE) to modernize its methodology for determining whether building energy codes are cost-effective.  (RER Letter | Roundtable Weekly, July 31)

What’s Next

RER will continue working with policymakers and industry partners to advance reliable and affordable energy supplies, efficient buildings, and clear rules that recognize the distinct responsibilities of data-center owners and operators.