AI Data Center Site Selection Transparency Act of 2026

Bill Number

H.R. 8488

Origin Chamber

House

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-04-23: Referred to the House Committee on Energy and Commerce.

Last Updated

2026-05-22T08:08:00Z

AI-Generated Summary

AI Data Center Site Selection Transparency Act of 2026

Purpose

This legislation aims to increase transparency for communities regarding the development of AI-focused data centers by requiring developers to publicly disclose key details about proposed sites, resource needs, and environmental effects before construction begins.

Key Provisions

• Disclosure Requirements: Developers must notify relevant local elected officials and issue a public press release at least 180 days before taking a "definitive step" to establish an AI-focused data center. The disclosure must include the proposed location and estimates of resources needed and environmental impacts.
• Public Engagement: Developers are required to engage local media, post on social media, send direct mail notices, install physical signage at the site, and provide materials in multiple languages (including English and Spanish).
• Non-Disclosure Agreements (NDAs): Use of NDAs is limited during the establishment process, and NDAs cannot be used with government entities or regarding public resources.
• Joint Disclosures and Analysis: Multiple entities involved must issue a single joint disclosure. An independent third-party environmental impact analysis (funded by the developer) is mandatory.
• Enforcement: Violations are treated as unfair or deceptive acts under the Federal Trade Commission (FTC) Act, with the FTC handling enforcement using its existing powers and penalties.
• Definitions: The bill provides detailed definitions for terms such as "AI-focused data center" (facilities designed for AI training, inference, or operations involving high-density computing hardware), "definitive step" (actions like signing land agreements or utility contracts), and "environmental AI impact" (effects on air, water, land, wildlife, and public health, aligned with National Environmental Policy Act standards).

Significant Changes to Existing Law

The Act introduces new federal disclosure and transparency mandates specifically for AI-focused data centers, which did not previously exist under U.S. law. It expands FTC authority to regulate these activities as unfair or deceptive practices without altering the core structure of the FTC Act.

Potential Impacts

• On Government Agencies: The FTC gains enforcement responsibilities; local, state, and tribal governments receive advance notifications and may see increased permitting or review activity.
• On Citizens: Residents in affected areas gain earlier access to information about potential developments, resource use, and environmental effects, potentially enabling greater community input.
• On International Relations: No direct effects identified, though the requirements apply to entities engaged in interstate or foreign commerce.

Main Stakeholders Affected

• AI data center developers, operators, and owners.
• Local elected officials and communities near proposed sites.
• Environmental and public health advocates.
• Utility providers and local media outlets.
• The Federal Trade Commission.

Notable Legal, Constitutional, or Political Implications

The bill includes a severability clause to preserve remaining provisions if any part is found unconstitutional. It applies only to entities whose activities substantially affect interstate or foreign commerce, raising potential Commerce Clause considerations. Politically, it emphasizes public access to information but may increase compliance costs and timelines for developers.

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

Sponsor

Rep. McIver, LaMonica [D-NJ-10]

Cosponsors (9)

Rep. Foushee, Valerie P. [D-NC-4], Rep. Carson, André [D-IN-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Grijalva, Adelita S. [D-AZ-7], Rep. Tlaib, Rashida [D-MI-12], Rep. Escobar, Veronica [D-TX-16], Rep. Cohen, Steve [D-TN-9], Rep. McGovern, James P. [D-MA-2], Rep. Quigley, Mike [D-IL-5]

Recent Actions

• 2026-04-23: Referred to the House Committee on Energy and Commerce.
• 2026-04-23: Introduced in House
• 2026-04-23: Introduced in House

Bill Versions

• AI Data Center Site Selection Transparency Act of 2026 — issued 2026-04-23 — PDF (10 pages)