As artificial intelligence drives demand for new data centers across the country, Rep. Kathy Castor wants to make sure Florida homeowners aren’t stuck paying for the power infrastructure those facilities require.
Castor recently introduced the bipartisan Ratepayer Protection Act, alongside Republican Rep. Gabe Evans of Colorado. The bill would give state utility regulators additional authority to ensure large energy users (particularly data centers) bear the costs of the power generation, transmission lines and grid upgrades needed to serve them.
The proposal arrives as utilities nationwide prepare for a dramatic increase in electricity demand. Data centers powering artificial intelligence require enormous amounts of electricity, prompting concerns that utilities could eventually spread those infrastructure costs across all ratepayers.
Castor said the legislation is designed to prevent that scenario. “The bill gives those state regulators another tool to push back on broader rate increases,” Castor told Polivese.
Regulators could require utilities to adopt more targeted rate structures that allocate costs directly to data centers, rather than residential customers and small businesses.
The issue is especially relevant in Florida, where utility bills have continued rising in recent years. The legislation does not prohibit new data centers or dictate where they can be built. Instead, Castor’s office said it seeks to answer a growing question surrounding the artificial intelligence boom: who pays for the infrastructure needed to support it?
Supporters argue the answer should be the companies driving the demand.
“Data center developers have said that they want to pay for the full costs to serve their energy demand,” Castor said, noting that Microsoft and Google have endorsed the proposal.
The bill would also address a concern utility regulators call “stranded costs.” For example, if a utility spends millions upgrading infrastructure for a planned data center that is later canceled, downsized or leaves the grid, someone is still responsible for paying for those investments.
Under Castor’s proposal, states could require larger upfront financial commitments from data center operators and hold them responsible for costs over a longer period of time.
Supporters say those safeguards would reduce the likelihood that residential customers ultimately absorb those expenses through future rate increases.
Castor also suggested states could encourage investments in technologies that continue providing value even if a data center project never materializes, including advanced transmission systems, battery storage and virtual power plants.
In Florida, Castor pointed specifically to solar energy paired with battery storage as one way to strengthen the grid while helping control costs.