Florida GOP lawmaker and governor candidate says AI data center
legislation keeps utility costs down
[July 21, 2026] By
MATT BROWN
WASHINGTON (AP) — Byron Donalds, a Republican congressman running for
Florida governor, on Monday announced legislation intended to prevent
artificial intelligence data centers from driving up utility costs, the
latest sign of a political backlash over the new technology.
The proposal, if passed by Congress, would require data centers to
obtain all their electricity and water needs from private sources,
rather than the power grid or public water systems. The idea aligns with
an earlier, voluntary initiative from President Donald Trump.
“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,” Donalds said in an interview with The Associated
Press. “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.”
Donalds' proposal is noteworthy coming from a candidate backed by pro-AI
political action committees and Trump. The legislation comes during a
rapid nationwide buildout of data centers to match growing demand for
artificial intelligence systems. Major technology firms at the heart of
the AI boom have quickly become some of the world’s most valuable and
watched companies, while the Trump administration has aligned itself
with the industry’s major players.
Several major tech companies developing AI infrastructure have committed
to agreements with the Trump administration to cover the expenses of
building new power sources rather than shifting the burden to
residential households. But given the expected increase in demand, it’s
unclear if the voluntary agreement is legally enforceable.
The furious pace of construction and high stakes of the technology have
raised concerns among many Americans. In Florida, more than 20 counties
and municipalities have voted to reject the construction of major data
centers, while others have banned their construction for at least a
year. Residents and local leaders often cite concerns over increased
utility bills, disruption of local communities and environmental damage
as major reasons for the pauses.
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 “These companies have been a step
behind and didn’t realize how quickly the ground was shifting under
their feet,” said Matt Gorman, a Republican strategist. Gorman said
that progressive climate activists and conservative populists have
both seized on the data center issue, requiring tech firms to “tell
a better story” and address concerns from across the political
spectrum.
“This is a full-court effort here,” Gorman said.
“If you don’t tell that story, you’re going to have it mandated on
you from lawmakers of both parties.”
Donalds is running to succeed Florida Gov. Ron DeSantis, a fellow
Republican who in May signed legislation that required large-scale
data centers to pay their own energy and water costs entirely.
Donalds, should he be elected governor, said he’d focus on improving
efficiency among data centers and moving the facilities away from
population centers.
“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,” Donalds said. “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.”
James Fishback, a far-right Republican candidate for governor, has
made opposition to data centers a center of his primary challenge to
Donalds. And David Jolly, a former congressman and the leading
Democratic gubernatorial candidate, this month called for a
moratorium on the construction of data centers.
Travis Fisher, a fellow at the Cato Institute, said public companies
usually push for the best deals to access public utilities. He said
any willingness to pick up a bigger tab for energy and water
reflects the political pressure facing tech firms.
“They are very afraid that they’re going to, I'd say, lose their
social license to operate, as if they’re basically going to get run
out of town or banned,” said Fisher.
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