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By Joe Edwards
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Data centers would be required to disclose their water and power use under a new bill designed to better inform communities affected by proposed developments.
Introduced by Virginia Democratic representative Eugene Vindman on Thursday, the proposed legislation comes as artificial intelligence and the rapid construction of data centers have emerged as key issues during midterm election campaigns.
Citizens across the country have raised concerns about their potential impact on electricity bills, water consumption, and noise disrupting nearby neighborhoods.
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What the Bill Would Do
The Data Center Oversight Act would require the Energy Information Administration, part of the Department of Energy, to collect and publish "comprehensive information" about existing and proposed data centers, according to a press release from Vindman, who represents Virginia’s 7th Congressional District.
The legislation would require data center operators to disclose ownership, how much energy and water they use, and any costs of supplying them that could be passed on to utility customers.
Companies would also have to say whether facility owners had signed nondisclosure agreements with public officials, whether union workers helped build the facilities, and whether they are within 1,000 feet of a school, national park, hospital or home.
Companies could be fined up to $1 million per day if they failed to report the information, submitted incomplete reports or provided misleading information, the release added.
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Vindman said the bill would help communities and policymakers better understand the rapidly growing industry.
"Virginians deserve to know who is building data centers in their communities, how much energy and water these facilities consume, and whether the costs are being shifted onto them through higher utility bills," he said.
"As data centers continue to expand across Virginia, the public needs clear, reliable information on how they impact local communities, infrastructure, and household costs.
"My legislation will shine a light on this rapidly growing industry, hold companies accountable, and give Virginians the information they need to make informed decisions about data center development."
Newsweek contacted Vindman's office for comment via email on Monday.
Virginia is home to an area known as Data Center Alley which has the highest concentration of data centers in the world. But as in many other states, the projects have faced pushback from concerned residents. Plans for a huge development in Prince William County were abandoned after strong opposition from locals and environmental groups.
In September, a Pew Research Center survey found that Americans’ attitudes toward the possible environmental and economic effects of data centers had grown more negative since the beginning of the year. The projects are also drawing scrutiny from politicians in both parties as data centers become a growing election issue.
Additional Bill Targets Data Center Power Costs
In October, Vindman also introduced the Make Data Centers Pay Act, that would amend the Federal Power Act—which governs wholesale electricity sales, power transmission and hydroelectric power regulation—to require medium- and large-sized data centers to cover the full incremental electricity costs associated with serving them.
"Hardworking Americans should not have to pay higher electricity bills to subsidize some of the largest and most energy-intensive data centers in the world," Vindman said in a statement previously emailed to Newsweek.
Contact Newsweek editors on this story: Ben Kelly and Trevor Davies
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