Power and Water for Families Act of 2026

The Power and Water for Families Act of 2026 establishes federal rules to manage the energy and water needs of large data centers and advanced computing facilities, which are expected to grow rapidly to support artificial intelligence development. Under the bill, large facilities consuming 100 megawatts or more of electricity must pay the full incremental costs for any new power lines or generation upgrades required to serve them, and they must provide financial guarantees before such infrastructure is built. To encourage these facilities to contribute to the broader grid, the law offers a 30 percent tax credit for generating extra power capacity that is sold to other customers like residential utilities or small businesses. The legislation also promotes water conservation by providing a 30 percent tax credit for projects that install onsite water recycling systems or replace freshwater use with treated municipal wastewater. These financial incentives and regulatory standards are designed to ensure that the expansion of high-demand technology does not unfairly raise electricity costs for existing customers while maintaining grid reliability.