AI Data Center Site Selection Transparency Act of 2026

Increased Public Awareness: Developers are required to engage local media, post on social media, send direct mail notices, and place physical signage at proposed sites (Section 2(a)(1)(B)). This ensures that people living near a proposed site are informed of upcoming developments.

Language Accessibility: Information must be provided in multiple languages, including English, Spanish, and other commonly spoken languages in the area (Section 2(a)(1)(B)(v)). This helps ensure that diverse communities can understand the impact on their local area.

Environmental Transparency: Developers must disclose estimated resource needs and environmental impacts (Section 2(a)(1)(A)(ii)) and must fund an environmental impact analysis conducted by an independent third party (Section 2(a)(3)). This can help protect natural resources, air quality, water quality, and public health.

Reduced Secrecy: The bill limits the use of non-disclosure agreements during the establishment process (Section 2(a)(1)(C)) and prohibits their use regarding government entities or public resources (Section 2(a)(1)(D)). This prevents companies from hiding details about their operations from the public and the government.

Increased Corporate Costs: Developers are required to fund environmental impact analyses conducted by independent third parties (Section 2(a)(3)) and must manage various outreach requirements (Section 2(a)(1)(B)). These mandates could increase the overall cost of developing data centers.

Legal Risk for Developers: Violations of the disclosure requirements are treated as unfair or deceptive acts or practices, which are subject to the enforcement powers and penalties of the Federal Trade Commission (Section 2(b)(1) and (2)). This creates significant legal and financial liability for companies that fail to comply with the specific disclosure timelines or methods.