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Bill

HR 6984

Data Center Transparency Act

119th Congress Introduced by André Carson and 4 co-sponsors

Requires federal agencies to publicly report quarterly data center air and water impacts and semiannual electricity use by state, revealing environmental and energy effects.

Introduced in House
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Bill Summary · HR 6984

Summary of HR 6984 – Data Center Transparency Act (119th Congress)

Purpose and Intent

The Data Center Transparency Act aims to increase visibility into the environmental and economic impacts of data centers in the United States. Specifically, it requires federal agencies to produce regular, publicly available reports on:
- air and water quality impacts related to data centers, and
- electricity consumption by data centers.

The overarching goal is to inform policymakers and the public about how data centers affect water resources, air emissions (via greenhouse gases), and electricity usage, including downstream effects on households and local communities.

Key Provisions

A. Reports on Air Quality, Water Quality, and Water Use

  • Trigger and Frequency:
    • The Environmental Protection Agency (EPA) must produce the initial report within 6 months after enactment and thereafter at least once every 3 months.
  • Content of Air/Water Reports:
    • Total water consumption by U.S. data centers for the preceding 3-month period.
    • Water reuse activities by data centers and the volume of reused water.
    • Impacts on local water systems, including:
    • Availability of potable water.
    • Any increased demand on local water utilities.
    • Potential service disruptions for other water utility customers.
    • Changes in residential water rates.
    • Pollutant discharge into water by data centers (as defined by the Federal Water Pollution Control Act).
    • Total greenhouse gas (GHG) emissions from data centers.
    • The cumulative effect of these GHG emissions on overburdened communities.

B. Reports on Electricity Consumption

  • Data Collection:
    • The Energy Information Administration (EIA) must collect data on the total energy consumed by each data center in the United States every 6 months.
  • Content of Electricity Reports:
    • Total energy consumption by data centers, disaggregated by state.
    • How energy consumption has changed over the 6-month period.
    • The number of data centers that began operating during the period.
    • Potential changes in household energy bills during the period.
    • The average household energy use and cost.
  • Timing:
    • The initial electricity report is due within 6 months after enactment, then every 6 months thereafter.

C. Definitions

  • The bill defines “data center” using the definition found in section 453(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17112(a)).

Who Is Affected

  • Federal agencies, specifically:
    • Environmental Protection Agency (EPA) for air and water quality reporting.
    • Energy Information Administration (EIA) for energy-use data collection and reporting.
  • Data center operators and local communities may be impacted indirectly through greater transparency about water use, emissions, and electricity demand.
  • Public and policymakers, who gain access to regular, publicly available reports.

Procedural and Timeline Aspects

  • Legislative Status:
    • Introduced January 8, 2026, by Rep. Menendez (and cosponsors).
    • Referred to the House Committee on Energy and Commerce.
  • Publication Requirements:
    • All reports must be submitted to Congress and publicly posted on a website.
  • Frequency:
    • EPA reports on air/water: every 3 months (initial within 6 months post-enactment).
    • EPA reports on water-related impacts: quarterly.
    • EIA reports on electricity use: every 6 months (initial within 6 months post-enactment).

Notable Details

  • The bill emphasizes transparency by making reports publicly accessible online.
  • It ties data center activity to both environmental parameters (air and water quality, pollutants, GHGs) and economic indicators (household energy bills and costs).

Potential Impacts and Considerations

  • Positive:
    • Provides lawmakers and the public with consistent, data-driven insight into the environmental footprint and energy demand of data centers.
    • Facilitates assessment of policy needs related to water resources, emissions, and electricity pricing.
  • Challenges:
    • Data collection and verification may be complex given the global and variable nature of data center operations.
    • Ensuring accuracy and timeliness of quarterly water/air quality data and semiannual energy data could require significant coordination between federal agencies and industry.

Overall, HR 6984 would establish a structured reporting framework to monitor and disclose the environmental and energy-use impacts of data centers in the United States.

Compiled from official sources — confirm details with the bill’s official record.

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