To require that new and existing data centers use off-grid power and water supplies, and for other purposes.
Summary
HR9777, introduced by Rep. Donalds (R-FL), would mandate off-grid power and water for new and existing data centers. The early-stage bill imposes cost burdens on data center REITs ($EQIX, $DLR) while creating demand for on-site solar solutions from $ENPH and $FSLR. No funding is authorized; the bill is a regulatory mandate with no companion legislation yet.
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Key Takeaways
- 1.HR9777 mandates off-grid power and water for data centers, increasing costs for operators.
- 2.Data center REITs $EQIX and $DLR face margin compression from retrofit capex.
- 3.Solar companies $ENPH and $FSLR could see incremental demand from data center compliance.
Market Implications
The bill introduces regulatory risk for data center REITs ($EQIX, $DLR), which could see their stocks underperform if the bill gains traction. Solar companies ($ENPH, $FSLR) may benefit from thematic interest, but the impact is contingent on legislative momentum. Without real market data, we cannot cite price movements, but structural positioning suggests a divergence between data center operators and on-site power providers.
⚡ Government Convergence
This signal is one of the converging government actions below.
Over the last 90 days, 66 separate government actions have converged on AI Compute / Datacenter Power. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 27 bills, 25 procurement notices, 9 federal contracts, 3 SEC filings and 2 patents — it's the clearest early tell that Washington is committing to ai compute / datacenter power, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- BillUnleashing Low-Cost Rural AI Act · 2025-09-09
- BillClean Cloud Act of 2025 · 2025-11-20
- BillData Center Transparency Act · 2026-01-08
- ContractCLARK/SMOOT/CONSIGLI, A JOINT VENTURE: IGF::OT::IGF PRE-CONSTRUCTION SERVICES, NATIONAL AIR&SPACE MUSEUM REVITALIZATION · 2026-03-17
- Procurement notice7C20--Data Center and Telecommunications Modernization (VA-26-00039374) · 2026-05-15
- ContractCA, INC.: NEW 66 MONTH OPEN-MARKET CONTRACT FOR RENEWAL OF CA SOFTWARE, SUPPORT SERVICES, AND MAINTENANCE. CA PROPRIETARY SOFTWARE PRODUCTS ARE USED E · 2026-05-19
- Procurement noticeInstallation of Dedicated 120VAC and 240VAC Receptacles for Data Center Re-cabling Project · 2026-06-10
- Procurement noticeY1DA--573-21-106 EHRM Infrastructure Upgrades and Data Center Construction - Gainesville VAMC · 2026-06-26
- Procurement noticeY1DA--534-24-706 EHRM Data Center Upgrades Construction - Charleston · 2026-07-21
- ContractPERATON ENTERPRISE SOLUTIONS LLC: IGF::OT::IGF: FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLIC · 2026-08-05
- Procurement notice7C20--Data Center and Telecommunications Modernization (VA-26-00039374) · 2026-08-05
- ContractFREQUENTIS USA, INC: $282M Department of Transportation Contract · 2026-09-01
- Procurement noticeFull Start-Up Commissioning of Data Center Cooling Infrastructure and UPS Battery Replacement · 2026-09-01
- Procurement noticeY1DA--573-21-106 EHRM Infrastructure Upgrades and Data Center Construction - Gainesville VAMC · 2026-09-02
Full Analysis
On July 20, 2026, Rep. Byron Donalds (R-FL) introduced HR9777, a bill requiring that new and existing data centers use off-grid power and water supplies. The bill was referred to the House Committee on Energy and Commerce, marking an early legislative stage with no cosponsors. The bill does not authorize any funding; it is a regulatory mandate that would force data center operators to self-generate electricity and treat water on-site, eliminating reliance on grid power and municipal water systems.
The money trail is indirect: the mandate imposes compliance costs on data center operators, which will be passed through to tenants (cloud providers, enterprises) via higher colocation fees. No direct government spending is involved. The mechanism is a federal requirement that would be enforced by the Federal Energy Regulatory Commission (FERC) or the Department of Energy, though the bill text is not yet public.
No related signals or procurement actions are provided in the enrichment data, so this bill stands alone. However, it aligns with broader trends in data center energy independence and sustainability, which have been driven by hyperscaler commitments to renewable energy.
Structural winners include solar companies ($ENPH, $FSLR) that provide on-site generation equipment. Data center REITs ($EQIX, $DLR) are structural losers due to increased capex and operating costs. The bill is early; it must pass committee markup, House floor vote, Senate consideration, and presidential action. Given the sponsor's junior status and zero cosponsors, passage probability is low in the current Congress.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
Mandate requiring new and existing data centers to use off-grid power and water supplies
Who must act
Data center operators, including Equinix
What happens
Increased capital expenditure for on-site power generation (e.g., solar, natural gas) and water treatment systems, raising operating costs and reducing margins
Stock impact
Equinix's data center portfolio (over 240 facilities globally) would require significant retrofits or new builds with self-contained utilities, increasing per-MW capex by an estimated 15-25% and compressing EBITDA margins by 2-4 percentage points
What the bill does
Mandate requiring new and existing data centers to use off-grid power and water supplies
Who must act
Data center operators, including Digital Realty
What happens
Increased capital expenditure for on-site power generation and water treatment, raising operating costs and reducing margins
Stock impact
Digital Realty's global data center portfolio (over 300 facilities) would face similar retrofit costs, with estimated 15-25% increase in per-MW capex and 2-4 percentage point compression in NOI margins
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
FREQUENTIS USA, INC: $282M Department of Transportation Contract
Andreessen Horowitz Fund X-B - AI Infrastructure, L.P.
Fusion Data Centers Inc.
MATCH Act of 2026
CREATE AI Act of 2025
To amend the Public Utility Regulatory Policies Act of 1978 to add a standard prohibiting the recovery of costs associated with data centers by certain electric utilities, and for other purposes.
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Declaring a National Emergency to Secure the United States Bulk-Power System
This executive order declares a national emergency to restrict foreign-produced bulk-power system electric equipment that poses national security risks, prohibiting new transactions involving equipment from covered foreign entities and allowing the Secretary of Energy to impose conditions on existing equipment. It directs the Secretary of Energy, in coordination with multiple agencies, to identify, mitigate, and potentially replace risky equipment, and establishes a pre-qualification list for approved vendors.
The National Space Transportation Policy
This memorandum directs multiple agencies to expand and modernize U.S. space launch and reentry infrastructure to support over 1,000 launches annually by 2030, expedite permitting and environmental reviews, develop new federal reentry sites, and strengthen the space transportation industrial base. It mandates range scheduling transparency, spectrum reliability, and workforce development, with specific reports and plans due within 90 to 240 days.
Adjusting Imports of Unmanned Aircraft Systems and Unmanned Aircraft Systems Components into the United States
This proclamation imposes a 100% ad valorem tariff on imports of unmanned aircraft systems (UAS) over 25 kg, those with thermal imagers, docking stations, and certain components, and a 25% tariff on UAS under 25 kg and other components, citing national security under Section 232 of the Trade Expansion Act. It also authorizes the Department of Commerce to establish an onshoring program offering preferential tariff treatment for companies that build new U.S. manufacturing facilities for UAS and components.
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