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, 6 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 — 3 bills, 1 SEC filings, 1 procurement notices and 1 insider buys — 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
- SEC filingAndreessen Horowitz Fund X-B - AI Infrastructure, L.P. · 2026-07-16
- Procurement noticeFire Alarm System, Sprinkler System and Fire Pump Testing and Inspection services at Mineta San Jose International Airport, Air Traffic Cont · 2026-07-17
- BillTo amend the Public Utility Regulatory Policies Act of 1978 to add a standard prohibiting the recovery of costs associated with data centers · 2026-07-13
- BillA bill to amend the Public Utility Regulatory Policies Act of 1978 to establish a Federal standard relating to the recovery of the full, inc · 2026-07-16
- BillTo require an assessment of the environmental and public health effects of data centers, and for other purposes. · 2026-07-09
- Insider buyInsider buy: FTAI Infrastructure Inc. ($45,800) · 2026-05-28
Full Analysis
On July 20, 2026, Rep. Byron Donalds (R-FL) introduced HR9777, a bill requiring that new and existing data centers use off-grid power and water supplies. The bill was referred to the House Committee on Energy and Commerce, marking an early legislative stage with no cosponsors. The bill does not authorize any funding; it is a regulatory mandate that would force data center operators to self-generate electricity and treat water on-site, eliminating reliance on grid power and municipal water systems.
The money trail is indirect: the mandate imposes compliance costs on data center operators, which will be passed through to tenants (cloud providers, enterprises) via higher colocation fees. No direct government spending is involved. The mechanism is a federal requirement that would be enforced by the Federal Energy Regulatory Commission (FERC) or the Department of Energy, though the bill text is not yet public.
No related signals or procurement actions are provided in the enrichment data, so this bill stands alone. However, it aligns with broader trends in data center energy independence and sustainability, which have been driven by hyperscaler commitments to renewable energy.
Structural winners include solar companies ($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
Andreessen Horowitz Fund X-B - AI Infrastructure, L.P.
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.
To require an assessment of the environmental and public health effects of data centers, and for other purposes.
A bill to amend the Public Utility Regulatory Policies Act of 1978 to establish a Federal standard relating to the recovery of the full, incremental costs of upgrades that serve large-load customers, and for other purposes.
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Further Strengthening Actions Taken to Adjust Imports of Aluminum into the United States
This proclamation modifies the Section 232 tariff regime on aluminum imports by authorizing the Secretary of Commerce to establish a program that incentivizes new U.S. investment in primary aluminum production. Companies with approved onshoring plans can import primary aluminum at half the standard Section 232 duty rate, up to the anticipated annual output of their new or expanded facilities, with construction required to start by January 20, 2029. The action aims to boost domestic primary aluminum supply for national security and defense industrial base needs.
Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials
This executive order restricts waivers for foreign-sourced critical materials in defense contracts, effective January 1, 2027, and mandates that defense contractors map their supply chains from raw materials to end products, vet subcontractors for risks, and prohibit covered materials from unreliable foreign suppliers. It directs the Secretary of War to enforce strict compliance, including requiring mitigation plans for any non-compliant materials and establishing penalties for fraud or willful noncompliance.
Regulatory Relief for Certain Stationary Sources to Promote American Chemical Manufacturing Security
President Trump issued a proclamation exempting certain chemical manufacturing facilities from compliance with the EPA's HON Rule for two years, citing unavailability of required technology and national security concerns. The exemption delays emissions-control deadlines and maintains pre-HON Rule standards for listed stationary sources, invoking authority under Clean Air Act section 112(i)(4).
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