PALM BEACH COUNTY, Fla. — 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% of all U.S. electricity generation by 2030, a sharp increase from current levels.
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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.
Donalds’ legislation would move beyond voluntary commitments by creating federal requirements for large-scale AI data centers.
Byron Donalds proposes AI data center restrictions
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.
A spokesperson for Donalds provided WPTV with a statement saying, ““Byron Donalds has been consistent: no ratepayer or environmental protections means no data centers. Byron is legislating and leading on this issue, while Democrat David Jolly is reacting with cheap talk like the washed up MSNBC analyst he is ,” said communications director Gates McGavick.”
The legislation comes as companies race to build AI infrastructure capable of supporting growing demand for generative AI systems and cloud computing.
Major tech companies sign ratepayer pledge
The Trump administration’s voluntary Ratepayer Protection 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.
The pledge is designed to reassure customers that the expansion of AI-related infrastructure will not automatically lead to higher electricity costs for households and small businesses.
Experts say proposal addresses key concerns
Mehran Basiratmand, director of innovations and programs at Florida Atlantic University, said the proposed legislation could address some of the biggest public concerns surrounding AI data centers.
Basiratmand previously served as chairperson of the policy board for what he described as the state’s largest data center.
“I think it’s clearly a move in the right direction,” Basiratmand told WPTV's Michael Hoffman.
He said requiring companies to generate their own power could encourage investment in alternative energy solutions rather than placing added pressure on public infrastructure.
“I think as we set up the threshold, law is clearly going to force companies to look at alternative sources,” Basiratmand said. “I do not think it’s going to shift companies to go overseas because we already see significant pushback in many countries on that as well.”
Basiratmand added that the proposal could ultimately benefit communities beyond the United States by encouraging more sustainable approaches to powering AI technology.
Why this matters now
AI companies are rapidly expanding data center construction nationwide as demand grows for artificial intelligence tools, cloud computing and digital services. Utility regulators and lawmakers in several states have increasingly debated whether residential customers could eventually absorb infrastructure costs tied to those projects.
Florida leaders have also focused heavily on energy reliability and growth as the state continues to add residents and businesses.
WPTV will continue tracking the progress of the Protecting Ratepayers Act through Congress.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
