FLORIDA — Republican Congressman Byron Donalds announced legislation intended to prevent artificial intelligence data centers from driving up utility costs. The proposal, if passed by Congress, would require data centers to obtain all their electricity and water needs from private sources.

The legislation would prevent data centers from using the power grid or public water systems. This measure aligns with an earlier, voluntary initiative from President Donald Trump. Several major tech companies developing AI infrastructure have committed to agreements with the Trump administration to cover the expenses of building new power sources. The agreements are intended to avoid shifting the burden of power source construction costs to residential households.

He discussed the incentives for industry cooperation during the announcement. "If you talk to these guys who are building these data centers, if it means that they have to pick up the utility costs, they’re more than willing to do it," he said. He framed the legislation as a method to address community concerns regarding infrastructure development.

"It’s in their interest to make sure that we can construct these centers, and I think the number one way you address and mitigate the concerns that people are having is to just ensure their utility bills aren’t going up in the process," he said. He later added that the goal is to ensure facilities are constructed responsibly. "We just want to make sure that if they do get built, they’re being built efficiently while protecting ratepayers and protecting Florida’s water," he said.

The federal proposal emerges during a period of rapid nationwide buildout of data centers to match growing demand for artificial intelligence systems. Resistance to this expansion has grown in Florida, where Donalds is running for governor. In the state, several counties and municipalities have voted to reject the construction of major data centers.

Some Florida counties and municipalities have banned the construction of major data centers for at least a year. Residents and local leaders cite concerns over increased utility bills, disruption of local communities, and environmental damage as reasons for rejecting or pausing data center construction.

State-level action has already addressed some of these concerns. Ron DeSantis is the governor of Florida and a Republican. DeSantis signed legislation in May that required large-scale data centers to pay their own energy and water costs entirely.

He identified broader energy challenges facing the sector. "The real public policy question for the country and for states is how are we going to generate baseload power for future energy demands, whether it’s for hyperscale data centers or for anything else," he said. He outlined specific goals for his gubernatorial campaign regarding the industry. He said he would focus on improving efficiency among data centers if elected governor. He also said he would focus on moving data center facilities away from population centers if elected governor.

Political opponents have also targeted the issue during the election cycle. James Fishback is a far-right Republican candidate for governor of Florida. Fishback has made opposition to data centers a center of his primary challenge to Byron Donalds.

David Jolly is a former congressman and the leading Democratic gubernatorial candidate in Florida. Jolly called for a moratorium on the construction of data centers this month. He is backed by pro-AI political action committees and Donald Trump.

Analysts have observed the changing political dynamics surrounding tech infrastructure. Travis Fisher is a fellow at the Cato Institute. He noted that public companies usually push for the best deals to access public utilities.

He stated that any willingness by tech firms to pay more for energy and water reflects the political pressure they face. Matt Gorman, a Republican strategist, said progressive climate activists and conservative populists have both seized on the data center issue.

The legislation represents a potential shift in how artificial intelligence infrastructure interacts with public utilities. By mandating private sources for electricity and water, the bill aims to separate the costs of massive data center operations from residential ratepayers. This approach mirrors state-level actions in Florida, where local governments have increasingly restricted new construction due to utility and environmental concerns. The federal proposal seeks to standardize this separation nationwide, ensuring that the rapid expansion of AI systems does not burden existing public infrastructure.