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
Active government convergence in this signal’s sector right now.
Over the last 90 days, 79 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 — 30 federal contracts, 23 procurement notices, 22 bills, 3 patents and 1 SEC filings — 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
- Procurement noticeC1DA--VISN 21 - EHRM Infrastructure Upgrade - Menlo Park Division (VA-25-00009556) · 2024-10-23
- Procurement noticeSources Sought for Sensing Systems Support · 2024-10-24
- Procurement noticeDA10--VA-25-00016458 Enterprise Virtualization Modernization. RFI · 2024-10-29
- Procurement noticeInstallation of the Installation Notification and Warning System (INWS) · 2024-10-29
- Procurement noticeFull Content Inspection (FCI) Cyber Defensive Capability · 2024-10-30
- Procurement noticeArnold Air Force Base (AFB) Installation Energy Process Prototype · 2025-02-04
- Procurement notice575-221 - EHRM Infrastructure Upgrades Construction - Tier 2 Data Center - Grand Junction, CO · 2025-06-24
- Procurement noticeZ2DA--519-23-908 EHRM Tier 2 Data Center Construction - Big Springs · 2025-10-14
- Procurement noticeCapacity as A Service (CaaS) · 2025-12-16
- Procurement noticeMarket Survey: The FAA is seeking interested Contractors that have the capability to design and construct two new Airport Traffic Control Towers (ATCTs). · 2026-04-02
- Procurement noticeDECA A-E MATOC PROJECT · 2026-07-13
- Procurement noticeD.C. Metro Area Multiple Award Indefinite Quantity Indefinite Delivery (IDIQ) Contract for Construction Services · 2026-10-14
- Procurement noticeDATA CENTER LAND AND PROPERTY ANALYSIS · 2026-10-15
- Procurement noticeFY27 Mentor Protege Program (MPP) Broad Agency Announcement · 2026-10-19
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
FREQUENTIS USA, INC: $594M Department of Transportation Contract
FREQUENTIS USA, INC: $282M Department of Transportation Contract
THE VIRGINIA DEPARTMENT OF ENERGY: $197M Department of Energy Grant
BREX Net Lease Data Center I DST
BREX Net Lease Data Center I DST
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $311M Department of State Contract
BREX Net Lease Data Center I DST
To direct the Assistant Secretary of Commerce for Communications and Information to conduct a survey with respect to data center resource consumption, and for other purposes.
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Advancing Women's Health to Improve Outcomes in All Phases of Life
This executive order establishes a Women's Health Division within the NIH to coordinate and accelerate research on understudied women's health conditions, and creates a White House Women's Health Task Force to drive policy reforms and translation of research into clinical practice across federal agencies. It directs specific agencies to prioritize research, data collection, and translation into prevention, diagnosis, and treatment, with a focus on all life stages from infancy through aging.
Streamlining Access to Government Services Through America.gov
The executive order directs the General Services Administration to create America.gov, a unified digital portal for federal services, integrating Login.gov for authentication and requiring agencies to expose their digital services via APIs. It also mandates the use of AI (referred to as 'super intelligence') with transparency safeguards, while preserving existing service channels and excluding tax and defense/intelligence services.
Enhancing Program Integrity and Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program
This executive order directs the Secretaries of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the SBA when processing H-1B petitions, and requires them to consider whether the employer has engaged in layoffs of similarly situated U.S. workers within the past year. It also orders the Labor Department to review past labor condition applications for potential enforcement actions against sponsoring employers, effectively tightening scrutiny on H-1B usage, especially by outsourcing firms.
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