Florida Congressman Proposes Bill Requiring AI Data Centers to Fund Their Own Electricity and Water

Rep. Byron Donalds announced legislation Monday requiring AI data centers to secure all electricity and water from private sources instead of public grids or systems. The bill targets rising utility costs tied to data center construction across the country.

Donalds, a Republican from Florida running for governor, said the requirement would align with industry interests. “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 told The Associated Press. He added that the approach would address public concerns by keeping residential bills stable.

The proposal follows similar steps in Florida. Gov. Ron DeSantis signed legislation in May 2026 that already requires large-scale data centers to cover their own energy and water expenses. More than 20 Florida counties and municipalities have rejected major data center projects, and some have imposed one-year construction bans.

Several major tech companies have reached agreements with the Trump administration to fund new power sources rather than pass costs to households. Donalds is backed by pro-AI political action committees and President Trump. Matt Gorman, a Republican strategist, said companies have lagged in addressing public opposition.

“These companies have been a step behind and didn’t realize how quickly the ground was shifting under their feet,” Gorman stated. He described the response as a “full-court effort” needed to avoid mandates from lawmakers of both parties. Donalds said that if elected governor he would emphasize efficiency improvements and locate facilities farther from population centers.