Data Center Water and Energy Transparency Act of 2026

Transparency on Utility Rates: Section 3(c)(2)(A)(ii) mandates that a joint public report describe the regional impacts of data centers on water and electricity rates for consumers and communities, which could help the public understand how these facilities affect their household utility bills.

Local Government Access: Section 3(a)(3) and Section 3(b)(3) ensure that data center reports are made available to affected units of local government upon request, giving local officials direct access to information regarding large facilities operating in their communities.

Efficiency Proposals: Section 3(a)(1)(A)(ii) and Section 3(b)(1)(A)(ii) require data center operators to include proposals for reducing their energy and water use and to outline anticipated efficiency increases, which could encourage better resource management.

State Fee Burdens: Section 3(a)(1)(C) allows States to assess fees on data center operators to support data collection, which could potentially be passed down to consumers or local businesses through higher costs for services.

Federal Reporting Fees: Section 4 allows the EPA Administrator and the Secretaries of Energy and Agriculture to jointly assess fees on data center operators that submit reports directly to the federal government, which also adds regulatory costs to facility operations.

Financial Penalties: Section 3(e)(2)(A) imposes a $20,000 per day fine on data center operators that negligently violate federal reporting requirements, which could lead to legal disputes or increased operational overhead.