Data Center Energy Reporting

Summary#

This bill would require large data centers to report their on-site energy and water use to state agencies, or to the Environmental Protection Agency (EPA) together with the Secretaries of Energy and Agriculture if the state does not collect the data. The main change is mandatory, regular reporting for data centers with peak electrical demand of 25 megawatts or more, plus reporting for proposed new or expanded centers of that size. The broad goal is to gather and publish aggregated information about how data centers use electricity and water and about their regional impacts.

• Who is affected: data center operators that run facilities with peak demand of 25 MW or more; people planning to build or expand such centers; states, local governments, EPA, DOE, and USDA.
• Main reporting requirements: annual reports for existing centers with monthly energy and water use, power and water efficiency metrics (PUE and WUE), behind-the-meter generation methods, 5‑year projections, and plans to reduce use.
• New project reporting: people seeking to build or expand centers with projected 25 MW+ energy use must file 5‑year projections and efficiency proposals before construction/expansion.
• If a state does not collect the data: operators must submit reports to EPA and the Secretaries of Energy and Agriculture.
• Public and aggregated output: states must send anonymized, aggregated data to the EPA and Secretaries, who will publish an annual public report with regional totals, projections, impacts on rates, and recommendations.
• Enforcement and fees: states may enforce and charge fees; if reporting is to the federal agencies, negligent violations can bring a federal fine of $20,000 per day (adjusted for inflation). Federal agencies may charge fees to cover their costs.

What it means for you#

• Data center operators

  • Must file annual reports for each on-site data center with peak demand ≥25 MW that include monthly energy use, monthly water use and source, average PUE and WUE, and behind-the-meter generation methods.
  • Must provide 5‑year projections of energy and water use and describe plans to reduce use or improve efficiency.
  • Must submit reports to the State if the State collects them; otherwise, submit to EPA and the Secretaries of Energy and Agriculture.
  • If a report is sent to federal agencies (because the State does not collect), a negligent failure to report can lead to a $20,000-per-day fine (subject to inflation adjustments).
  • May face State fees to support data collection, and may face State enforcement actions under State law.

• People or companies planning new data centers or expansions

  • Must submit a pre-construction/expansion report to the State (or to the federal agencies if the State does not have a program) for projects with projected energy use ≥25 MW. The report must include 5‑year projected energy and water use and efficiency-reduction plans.

• State and local governments

  • States may set the form and manner of reports, collect and aggregate data, assess fees on operators, and enforce compliance under State law.
  • Units of local government can request access to the reports collected by their State.

• Federal agencies (EPA, DOE, USDA)

  • Will receive reports from States and from operators in States that do not collect data.
  • Will jointly publish a public annual report with aggregated national and regional data, projections, impacts on rates, environmental impacts, and recommendations.
  • May write rules to carry out the law and may assess fees on operators who report to them to cover administrative costs.

• Consumers and communities

  • The bill would make aggregated information available about regional data center energy and water use and potential effects on local rates and supplies, through the federal public report.

Expenses#

No publicly available information.

• The bill allows States to assess fees on data center operators to support their data collection programs.
• The EPA and the Secretaries may jointly assess fees on operators who report to the federal agencies and may use the fees without further appropriation to carry out the federal reporting duties.
• The bill does not include a fiscal note in the text provided, so estimated staffing, technology, or administrative costs to States or the federal government are not stated.

Proponents' View#

• The bill appears intended to increase transparency about how much energy and water large data centers use.
• Supporters may argue that aggregated data will help governments and communities plan for electricity and water needs and manage impacts on rates and supplies.
• The bill could be seen as improving public information for environmental and infrastructure planning by collecting monthly use data, efficiency metrics, and 5‑year projections.
• Requiring proposed projects to report projections could allow earlier assessment of regional impacts before construction or expansion.

Opponents' View#

• One concern is increased reporting and compliance burden on data center operators, who must collect monthly and projected data and prepare plans to reduce use.
• The bill does not fully explain how proprietary or sensitive operational information will be protected, beyond saying the federal report should not include information the agencies jointly determine is proprietary. This may raise confidentiality or security questions.
• The federal fine for negligent noncompliance ($20,000 per day) is large; it applies when reporting to federal agencies (i.e., in States without collection programs). It is unclear how “negligent” will be defined or applied.
• The law allows both State and federal rulemaking and enforcement; this could create duplicate or varying reporting formats if not well coordinated across jurisdictions.
• The bill does not provide detailed fiscal estimates, so the scale of administrative costs for States or federal agencies is unclear.