Bill · S. 5054· Senate(119-S-5054)
Data Center Tax Accountability and Disclosure Act of 2026
- Introduced
- 7/21/2026
- Last activity
- 7/21/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Mark Warner
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, the "Data Center Tax Accountability and Disclosure Act of 2026," changes how AI data centers are treated under the tax code. It exempts certain AI data centers from bonus depreciation, provided they do not meet specific green building standards. Additionally, the bill requires operators of large-scale "covered" data centers to submit detailed information regarding their water and electricity usage. These disclosures must be submitted to the government and, in certain cases, to electing States. The goal is to increase transparency regarding the resource consumption of these facilities.
Yes· 3 of 10
Does this make what the government does easier for the public to see?+6
The bill mandates that environmental and resource usage data from data centers be made available on public websites.
Does this put more rules on large technology companies?+5
The bill imposes new, mandatory transparency and reporting obligations on large-scale AI data center operators.
Does this give the federal government more power?+4
The bill grants the Secretary of Energy and the EPA Administrator new oversight and reporting authorities over data center operations.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Incentives for Green Building: AI data centers that achieve LEED Green Building Rating System certification at the Platinum or Gold level are excluded from the bonus depreciation exemption, which encourages more sustainable construction (Section 2(a)(1)(B)).
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Increased Transparency: Data center operators must submit annual reports containing specific details on water access, electricity consumption, greenhouse gas emissions, and backup power usage (Section 3(c)).
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Public Access to Environmental Data: The Secretary of Energy and the Administrator of the EPA are required to make disclosures and reports publicly available on their respective websites (Section 3(d)(2)).
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Accountability for Resource Use: By requiring detailed reporting on water consumption and electricity demand, the bill provides a mechanism to track how these facilities impact local utilities and environments (Section 3(c)).
Potential Negative Impacts for People
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Financial Burdens for Non-Green Data Centers: AI data centers that do not meet specific LEED certification standards will be exempt from bonus depreciation, which changes their tax treatment (Section 2(a)).
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Penalties for Non-compliance: Data center operators that negligently fail to submit required information can be fined up to $50,000 per day, while those who knowingly submit false or misleading reports can be fined up to $100,000 per day (Section 3(g)).
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Compliance Requirements for Federal Data Centers: While dedicated Federal data centers are exempt from some parts of the bill, dual-use data centers are subject to specific standards established by the Director of the Office of Management and Budget (Section 3(e)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Improves Government Transparency+6Increases Federal Power+4
- Environment Energy And Infrastructure
- Improves Environmental Protections+4Reduces Carbon Emissions+3Increases Renewable Energy Investment+2
- Demographic And Interest Groups
- Good For Business Owners+4Good For Urban Residents+3
- Education And Technology
- Increases Big Tech Regulation+5
- Economy And Finance
- Improves Economic Growth+3
- National Security And Foreign Policy
- Improves Cybersecurity Defense+2
- 9/30/2026
- 1 Cosponsor added.
- 7/21/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
Tammy DuckworthDemocrat · Illinois