ATLANTA — Georgia senators rejected a proposal Tuesday that would have explicitly prevented power companies from passing on data centers’ costs to customers, instead advancing a bill with fewer consumer protections.

The 9-3 vote by the Senate Regulated Industries Committee is the latest round in this year’s battle over rapidly growing data centers, the engines for artificial intelligence technology that require enormous amounts of new electricity capacity in Georgia.

The committee approved legislation that would require electric utilities to write contracts with new data centers that shield other customers from related costs, such as building new transmission lines.

But the bill passed Tuesday lacks specific language that forbids utilities from making regular customers pay for the expense of expanding Georgia’s power grid for data centers.

“The data center boom created this historic demand for new electric generation, and they should pay for it,” said Bobby Baker, a consumer advocate and former member of the Public Service Commission, which regulates Georgia Power and other electricity providers. “Current ratepayers should not be underwriting this $34 billion investment that could undermine the reliability and affordability of Georgia’s electric system.”

Public Service Commission Chair Jason Shaw told senators that consumers are being protected by an agreement last year that freezes Georgia Power’s electricity rates for the next three years. He said the PSC needs flexibility to set electricity rates without the constraints of a new state law.

“We can all argue all day about what it’s going to take to keep the lights on,” Shaw said. “It’s still a national problem. But I feel like we are in the right spot with being able to stabilize these rates, because Lord knows, everybody’s tired of increases.”

The PSC has raised rates six times since 2023, increasing customer bills by an average of $43 per month.

Georgia Power Senior Vice President of Strategic Growth Aaron Mitchell said data centers will pay for the costs of their electricity consumption through contracts with the utility. He said Georgia power is investing $20 billion to serve large-load customers such as data centers.

Mitchell said Georgia Power opposes a version of the bill that would have made it illegal for the company to pass on costs for data centers’ consumption, including electricity transmission and generation infrastructure.

“We agree with the intent just not the inartful way of dealing with that in legislation,” Mitchell said.

The new Senate version of the bill is similar to a measure that passed the state House last week that critics also said was too weak.

“In my opinion, this bill offers no protection to our consumers,” said state Sen. Chuck Hufstetler, R-Rome, the sponsor of the original version of Senate Bill 34.

The bill would next be considered by the Senate Rules Committee before it could move on for a vote in the full state Senate.