The rapid growth of AI-driven data centers is intensifying debate over how communities should manage their impacts on electricity, water, infrastructure and local resources. Public concern is rising, with a July POLITICO poll finding that 41% of Americans would oppose a data center within three miles of their homes, up from 28% in January. Congress is responding with bipartisan proposals focused on ensuring data centers and other large electricity users—not residential ratepayers—pay the costs of new generation, transmission and grid upgrades. The House Energy & Commerce Committee advanced the Ratepayer Protection Act (H.R. 9340) unanimously, while the Senate is considering the GRID Savings Act and other approaches. Federal agencies are also addressing permitting and energy supply, including EPA guidance expanding opportunities for “islanded” power generation. For special districts, these developments underscore the importance of monitoring data center proposals and understanding their potential impacts on local utilities, water systems and infrastructure.