Data Center Transparency Act

Bill Number

H.R. 6984

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Environmental Protection

Status

Introduced

Latest Action

2026-01-08: Referred to the House Committee on Energy and Commerce.

Last Updated

2026-06-30T08:06:13Z

AI-Generated Summary

Purpose of the Legislation

The Data Center Transparency Act aims to increase oversight and public awareness of the environmental and energy impacts of data centers in the United States. It mandates regular reporting on how these facilities affect water and air quality, as well as their electricity use, to inform policymakers and the public about resource consumption and potential harms.

Key Provisions

• Environmental Reports by the Environmental Protection Agency (EPA): Starting 6 months after enactment, the EPA must submit reports to Congress and post them online every 3 months. These reports cover the previous 3 months and include:
• Total water used by U.S. data centers.
• How data centers reuse water and the amount reused.
• Impacts on local water systems, such as effects on drinking water availability, increased demand on utilities, service disruptions for other users, changes in residential water rates, and pollutants discharged into water (pollutants are defined under federal clean water laws as substances that could harm water quality).
• Total greenhouse gas emissions from data centers (greenhouse gases are pollutants like carbon dioxide that contribute to climate change).
• Effects of these emissions, including cumulative harm to overburdened communities (areas already facing high pollution or environmental stress).
• Energy Reports by the Energy Information Administration (EIA): Starting 6 months after enactment, the EIA must collect data every 6 months on energy use by each U.S. data center and issue reports to Congress and online covering the previous 6 months. These include:
• Total energy consumption by data centers, broken down by state.
• Changes in energy use over the 6-month period.
• Number of new data centers that started operating.
• Potential changes in household energy bills.
• Average household energy use and costs.
• Definition of Data Center: Refers to facilities primarily designed for housing computer systems, as defined in the Energy Independence and Security Act of 2007 (large-scale operations for data storage, processing, or distribution).

Significant Changes to Existing Law

This bill introduces new mandatory reporting requirements for federal agencies, which do not appear to exist in current law. It builds on existing definitions but adds specific, recurring data collection and disclosure obligations focused on data centers' environmental footprint and energy demands. No amendments to prior statutes are made; instead, it creates fresh reporting duties under the EPA and EIA's authorities.

Potential Impacts

• On Government Agencies: The EPA and EIA will face increased administrative burdens, including data gathering from data centers and utilities, report preparation, and public dissemination. This could require additional resources or coordination with state and local entities.
• On Citizens: Provides greater transparency, potentially alerting communities to local risks like water shortages, higher utility bills, or pollution. Overburdened areas may benefit from highlighted cumulative effects, aiding advocacy for protections. Households could see indirect effects if data center energy use drives up broader electricity costs.
• On International Relations: Minimal direct impact, though increased U.S. scrutiny of data centers (many operated by global tech firms) could influence international standards for sustainable data infrastructure or trade discussions on energy and environment.

Main Stakeholders Affected

• Federal Agencies: EPA (environmental reporting) and EIA (energy data collection).
• Data Center Operators: Required to provide data on water use, emissions, and energy consumption, potentially facing compliance costs.
• Local Utilities and Communities: Water and energy providers may need to share information; residents, especially in polluted or resource-strained areas, could gain tools to monitor and address impacts.
• Congress and the Public: Benefit from accessible reports for oversight, policy-making, and informed decision-making.
• Tech Industry: Companies running data centers (e.g., cloud providers) may need to adapt operations for better sustainability to respond to public scrutiny.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes enforceable reporting timelines, which could lead to future regulations if data reveals widespread issues. Relies on agencies' existing data-collection powers but may require clarification on how private data centers must comply without new privacy safeguards specified.
• Constitutional: No apparent conflicts; aligns with Congress's authority to direct executive agencies on environmental and energy matters. Public disclosure promotes transparency without infringing on private rights.
• Political: Highlights growing concerns over data centers' role in climate change and resource strain amid the rise of AI and digital infrastructure. Could spark debates on balancing tech innovation with environmental protection, potentially influencing energy policy or incentives for green data centers.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Menendez, Robert [D-NJ-8]

Cosponsors (9)

Rep. Casar, Greg [D-TX-35], Rep. Houlahan, Chrissy [D-PA-6], Rep. Carson, André [D-IN-7], Rep. Craig, Angie [D-MN-2], Rep. Davids, Sharice [D-KS-3], Rep. Grijalva, Adelita S. [D-AZ-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Larson, John B. [D-CT-1], Rep. Velázquez, Nydia M. [D-NY-7]

Recent Actions

• 2026-01-08: Referred to the House Committee on Energy and Commerce.
• 2026-01-08: Introduced in House
• 2026-01-08: Introduced in House

Bill Versions

• Data Center Transparency Act — issued 2026-01-08 — PDF (4 pages)