Baumgartner introduces bill aiming to facilitate responsible development of AI data centers

June 25, 2026 | In The News

The legislation aims to ensure that data centers and other large-load facilities pay the full cost of the power and water infrastructure needed to serve them.

Published in KREM2 News

WASHINGTON D.C., DC — On Wednesday, Congressman Michael Baumgartner introduced the Power and Water for Families Act of 2026 (H.R.9419), which aims to ensure that AI data centers and other large-load facilities pay the full cost of the power and water infrastructure needed to serve them.

“America must win the AI race, but working families should not be forced to subsidize it,” said Baumgartner. “No data center should be forced on a local community. And if a massive new data center needs new power plants, transmission lines, grid upgrades, or water infrastructure, it should pay its own way. This bill protects ratepayers, encourages new generation, and helps communities conserve local water resources.”

Baumgartner said that while artificial intelligence can strengthen national security and drive economic growth, the data centers needed to power AI can consume electricity on the scale of small cities and place major new demands on local utilities and water systems.

The Power and Water for Families Act seeks to create a framework for responsible development. The bill directs the initiation of regional and state regulatory procedures to require: 

  • The adoption of incentives for large-load customers to build, bring, buy, finance, or dedicate new generation resources to serve their own demand
  • The recovery of the full incremental cost of generation, transmission, and distribution upgrades from large-load customers
  • Deposits, guarantees, or other financial assurances before making major upgrades for large-load customers

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