Florida bill to make AI data centers cover utilities lands as Kern eyes 99MW site
Rep. Byron Donalds pitched a federal plan to keep data center costs off ratepayers. Central Valley officials are weighing similar questions as Kern reviews a 99 MW project.
Florida bill to make AI data centers cover utilities lands as Kern eyes 99MW site
Key Takeaways
- Rep. Byron Donalds proposed a federal bill to require AI data centers to secure private power and water.
- Florida’s governor signed a May law making large data centers pay full utility costs.
- Kern County has a 99 MW data center application near Inyokern under state review.
- Fresno-area high-speed rail officials discussed data center leases and promised public debate.
"Trust me, it’s going to be a big issue," Henry Perea told the California High-Speed Rail board in late June, urging a fuller public airing on data centers. The warning came weeks before Florida congressman and governor candidate Byron Donalds said on July 20 that his new federal bill would keep artificial intelligence data centers from pushing up household utility bills. Why Central Valley readers should care sits in the power and water math for projects already on our doorstep.
What Donalds proposed
Donalds’ office told the Associated Press the proposal would require data centers to meet their electricity and water needs with private sources rather than the public grid or municipal systems. He framed it as a ratepayer shield and said companies are willing to shoulder those costs. Florida has already moved on a similar track. In May, Gov. Ron DeSantis signed a state law that requires large centers to cover their full cost of service, including energy and water, and limits pass-throughs to residents.
The bill arrives as both parties court tech firms and as residents question where the power will come from. Big number, bigger footprint.
Kern County’s 99 MW test case
Closer to home, applications filed with state regulators detail a 99 megawatt data center proposed near Inyokern in Kern County. Plans show an on‑site substation, a first phase of 60 MW, and backup diesel generation for emergencies. The location sits between US 395 and North Brown Road, with a tentative construction start in 2027. Supporters point to construction jobs and new tax base. Opponents ask about water for cooling, diesel emissions on bad air days, and whether nearby ratepayers could end up backstopping grid upgrades if a big load connects to public lines.
Kern County supervisors will face those questions if the project advances, and so will PG&E and local air regulators who own pieces of the review.
What Fresno’s rail board asked
Fresno’s Perea pressed rail staff to run public workshops before the agency entertains data center leases along the bullet‑train corridor. The authority is exploring private partnerships to build out power and fiber, then possibly lease excess capacity. That could bring in revenue, but it also puts the agency inside a statewide fight over how to site high‑load facilities, who pays for interconnections, and whether to keep them near population centers.
Rate design for large customers is not just theory here. Turlock and Modesto irrigation districts, and PG&E territory across Fresno and Madera, already sort out cost‑of‑service questions when new industrial users ask to plug in. Officials will have to say on the record what happens if a hyperscale tenant knocks.
One small thing stuck with me, driving past the Inyokern turnoff last fall: the green 395 mile marker looked sun‑bleached.
Central Valley AI is produced by the CVAI Newsdesk team and developed by Kaweah Tech, a regional firm that builds, deploys, and integrates AI solutions for businesses across California's Central Valley.