Byron Donalds Proposes AI Data Center Rules: Self-Powered, Closed-Loop Water Systems
The Florida gubernatorial candidate outlines a 'common sense' regulatory approach that rejects moratoriums while protecting ratepayers and water resources.
U.S. Rep. Byron Donalds, a leading contender in Florida's 2026 gubernatorial race, has unveiled a data center policy requiring AI facilities to supply their own power and implement closed-loop water filtration systems. The proposal positions Donalds between pro-growth advocates and critics calling for outright pauses on new hyperscale facilities.
Power and Water Protections
Donalds' plan mandates that tech companies meet their own energy demand for any potential AI data center, ensuring residential utility rates remain unaffected. His campaign stated he "will put Floridians first by requiring tech companies to supply their own power demand for any potential AI data center, putting ironclad taxpayer rate protections in place, and protecting Florida's water resources from abuse."
The closed-loop water requirement addresses growing concerns about data centers' environmental footprint. These facilities consume millions of gallons for cooling, straining local water supplies in drought-prone regions.
Building on Existing Law
Florida already has protections in place. Senate Bill 484, signed by Governor Ron DeSantis in May 2026, prohibits utility providers from passing data center infrastructure costs onto residential and small-business customers. Donalds has indicated he intends to maintain and strengthen these safeguards.
"We're going to keep those laws in place," Donalds said after a Fort Lauderdale rally. "We're going to add to them around proximity, making sure that if a hyperscale data center is constructed, it's not next to somebody's home and not next to somebody's community."
A Middle Ground on Moratoriums
The proposal serves as Donalds' alternative to moratoriums advocated by political opponents, including former U.S. Rep. David Jolly. Several Florida cities have enacted temporary pauses on new data center approvals due to grid capacity and environmental concerns.
Donalds frames his approach as "common sense" regulation that allows continued tech investment while addressing legitimate public concerns. He has stressed the importance of keeping American data within the U.S. and out of the hands of adversaries like China, framing AI infrastructure development as a national security matter.
The Broader Context
Florida has actively courted tech infrastructure through tax exemptions Donalds co-sponsored in 2017. But the AI boom has intensified scrutiny over the energy and water demands of hyperscale facilities. Governor DeSantis' administration has walked a similar line, supporting industry growth while signing ratepayer protections.
Donalds' policy attempts to reconcile these competing pressures. By requiring self-sufficient power and water systems, his plan shifts infrastructure costs away from taxpayers while keeping the state attractive to tech investment. Whether this middle ground satisfies both industry and environmental advocates remains uncertain as the gubernatorial campaign intensifies.