Data Centers Face New Transparency Reports

Summary#

The Data Center Transparency Act of 2026 would create a new federal law requiring reports about certain data centers’ effects on water, air-related emissions, and electricity use. It would require the Environmental Protection Agency (EPA) and the Energy Information Administration (EIA) to collect or report information; its stated goal is to make those effects more transparent.

  • The bill covers data centers that meet a threshold of at least “50 megawatts each day,” using a definition in the Energy Independence and Security Act of 2007.
  • The EPA must publish reports at least every three months on water use and reuse, effects on local water systems, pollutants discharged, greenhouse gas emissions, and the effects of those emissions, including cumulative effects on overburdened communities.
  • The EIA must collect energy-use data for each covered data center and information on related energy-grid construction, including the types of energy being built.
  • At least twice a year, the EIA must publish a report on data-center energy use by state, changes in that use, new data centers, possible changes in household energy bills, and average household energy use and cost.

What it means for you#

  • People who use local water or electricity: The reports would cover issues such as water availability, utility demand, possible service disruptions, water rates, and household energy bills. The bill does not itself change utility rates or require utilities to provide a particular level of service.
  • People living near data centers: The EPA’s reports must include greenhouse gas effects, including cumulative effects on overburdened communities. The bill does not define “overburdened communities” or create a process for residents to raise concerns.
  • Data center operators: The bill does not directly require operators to file reports, apply for approval, or change how they use water or electricity. It does not create a limit on water use or emissions, or a penalty for them.
  • Federal agencies and taxpayers: The EPA and EIA would have new reporting and data-collection duties. The bill does not specify how they must obtain the information.
  • The public: The reports must be made available on agency websites. EIA must collect electricity-use data for each covered center, but the bill does not expressly require publishing that center-by-center data.

Money#

No cost estimate or funding amount is included in the supplied material; no publicly available cost information is provided.

  • The agencies would need to carry out reporting and data-collection work, but the bill does not say how many staff or how much money that would require.
  • The bill creates no tax, fee, fine, or direct payment to data centers or households.

What is unclear#

  • “50 megawatts each day” is not explained. The bill does not clarify how that threshold is to be measured.
  • The bill relies on a definition of “data center” in another federal law, but that definition was not included in the supplied material.
  • The bill does not explain how EPA and EIA will obtain the data, check its accuracy, or handle missing information.
  • The EIA must collect information about energy-grid construction and energy types, but that subject is not listed among the details its twice-yearly public reports must describe.
  • The bill does not set out how “overburdened communities” are identified or define what counts as a data center’s effect on household bills.

Case for#

  • A possible argument for the bill is that regular public reporting could help people and lawmakers see how large data centers use water and electricity and how they relate to local utility conditions.
  • Reporting on water reuse, pollutants, and greenhouse gas emissions could make information about environmental effects easier to find.
  • State-level electricity data and household energy measures could help show changes over time, without the bill itself dictating energy or water policy.

Case against#

  • The bill requires information but does not set out how agencies will get or verify it. That could make the reports incomplete or difficult to compare.
  • The threshold may leave out data centers below the stated size, even where their combined effects matter.
  • The bill requires recurring federal work but provides no cost estimate or specific funding.
  • The bill requires the EIA to collect some center-by-center energy data but does not clearly require that level of detail to be made public.