According to Utility Dive, President Donald Trump announced on Monday, February 24, 2025, his intent to sign an executive order to create a single national regulatory framework for artificial intelligence. This comes just days after Florida Governor Ron DeSantis, a fellow Republican, unveiled a state proposal for an “Artificial Intelligence Bill of Rights.” DeSantis’s plan includes a measure to prohibit utilities from charging residents more to support hyperscale data center development, citing limited grid capacity and rising bills. The American Enterprise Institute criticized DeSantis’s approach on Monday, while the debate over data centers’ impact on electricity prices intensifies, with conflicting reports from grid monitors and national labs.
Federal vs. State Smackdown
Here’s the thing: Trump‘s push for “ONE RULE” is a classic preemption play. He’s basically saying the patchwork of state laws is a nightmare for business, and he’s not wrong from an industry perspective. But DeSantis is firing back with a states’ rights argument that’s deeply rooted in conservative ideology. He’s not just proposing rules; he’s explicitly talking about protecting local control to reject data center construction. So we’ve got two powerful Republican figures on a collision course over who gets to call the shots on one of the most important tech issues of our time. It’s a fascinating political rift that goes way beyond typical partisan lines.
The Real Battle Is Over The Grid
Look, the core of DeSantis’s concern isn’t really about AI algorithms or deepfakes. It’s about physical infrastructure and energy costs. He’s tapping into a very real, very visceral fear constituents have: their power bill going up. When he says “There’s a finite amount of grid,” he’s voicing a widespread anxiety. The data center boom is forcing a brutal conversation about energy capacity that we’ve kicked down the road for decades. And his dismissal of small modular nuclear reactors as uneconomical? That’s a huge blow to a technology many see as a key part of the solution. He’s essentially arguing that the growth trajectory for AI compute is physically unsustainable without massive, immediate grid investment—investment he doesn’t think is coming fast enough.
Stakeholder Whiplash
For AI developers and hyperscale companies like Amazon, Google, and Microsoft, this is a worst-case scenario. Trump’s order promises simplicity, but DeSantis’s move signals a potential wave of state-level resistance that could be even more cumbersome. Imagine trying to site a new data center if every county commission has veto power. For utilities and grid operators, it’s pure chaos. They’re caught between soaring demand and political mandates not to pass on the costs of meeting that demand. And for regular users and businesses? The outcome of this fight will directly affect how quickly AI services evolve and, quite literally, how much you pay for electricity. If states successfully wall off development, we could see a huge divergence in AI capability and infrastructure across the country. Basically, your access to the next generation of AI might depend on your zip code.
A GOP Identity Crisis On Tech
The AEI piece criticizing DeSantis for mimicking “blue states” is telling. It exposes a fundamental split in conservative thinking. One side, represented by Trump’s order and think tanks like AEI, champions deregulation and national standards to fuel innovation and compete globally. The other side, which DeSantis is leaning into, is more populist and localist—it’s skeptical of big tech’s power and prioritizes immediate, tangible consumer protection over abstract innovation goals. This isn’t just about AI; it’s about what the Republican Party stands for in the 21st century economy. Can it be the party of both big business and the little guy facing a higher utility bill? The answer to that question will shape US tech policy for years. And honestly, it’s a mess that hardware and infrastructure providers, from chipmakers to the leading suppliers of critical components like industrial panel PCs, are watching very, very closely.
