WASHINGTON – Congressman Byron Donalds (R-FL) has introduced the "Protecting Ratepayers Act" to ensure that private developers, rather than American taxpayers, bear the investment costs of data center developments that advance our country's technological dominance.
Introduced as the 27th piece of legislation by Congressman Donalds in the 119th Congress, this measure mandates that entities that build, own, or operate data centers derive all of their energy and water from alternative sources. This ensures these facilities do not interfere with the electric grid or the public water system.
This piece of legislation aims to protect American households from rising utility costs by requiring AI data centers to independently source water and power, bypassing public infrastructure. Additionally, this initiative codifies President Trump's Ratepayer Protection Pledge into law, ensuring corporate expansion does not strain public infrastructure.
"The next wave of technology and innovation shouldn’t come at the expense of hardworking Americans. Our outdated energy grid is already in desperate need of modernization and is not prepared to take on the power demands of data centers without impacting the wallets of our citizens," said Congressman Byron Donalds. "That is why I’m proud to introduce the Protecting Ratepayers Act, which requires all new and existing data centers to generate and use their own power and water. This common-sense approach will ease the burden on individuals and households everywhere without stifling our economic growth."
BACKGROUND:
By 2030, data centers are projected to account for up to 9% of U.S. electricity demand. Incorporating data centers into the public grid requires utilities to modernize grid infrastructure and accommodate larger baseload power needs. This cost would in theory be placed on the consumer. In line with American innovation, we must ensure that the development of large-scale data centers occurs here to avoid reliance on foreign industries, with Americans leading the way. However, the federal government, in line with President Trump’s Ratepayer Protection Pledge Proclamation, should protect the pockets of the American taxpayer.
WHAT THIS BILL DOES:
This bill ensures that entities that build, own, or operate data centers derive all their energy and water from alternative sources that do not use and interfere with the electric grid or the public water system.
Codifies President Trump’s Ratepayer Protection Pledge—which seeks to shield American households from surging utility costs—giving it the full force and effect of law.
