AI data centers could soon face new federal requirements under legislation backed by Florida Republican U.S. Rep. Byron Donalds that aims to prevent rising electricity demand from increasing utility bills for everyday customers. The proposal comes as the rapid expansion of hyperscale AI data centers raises concerns nationwide about strain on the power grid and water resources. The Electric Power Research Institute estimates data centers could consume up to 9 percent of all U.S. electricity generation by 2030, a sharp increase from current levels.
Donalds introduced H.R. 9777, known as the Protecting Ratepayers Act, which would require hyperscale AI data centers to provide their own power generation and water resources instead of relying on public utilities. Supporters of the proposal say it could help shield customers in Florida and across the country from future utility rate increases tied to growing energy demand from artificial intelligence infrastructure. The legislation comes as companies race to build AI infrastructure capable of supporting growing demand for generative AI systems and cloud computing.
The Trump administration recently announced the Ratepayer Protection Pledge, a voluntary agreement involving major technology companies, utilities and state leaders intended to keep the cost of powering new AI facilities from being passed on to residential and commercial utility customers. The pledge has been signed by several major technology companies, including Amazon, Google, Meta, Microsoft, OpenAI, Oracle and xAI. Utilities and state leaders have also joined the initiative, according to the administration.