Bill would disclose data center energy, water use

U.S. Senator Mark Warner of Virginia has introduced a federal bill, the Data Center Tax Accountability and Disclosure Act, aimed at increasing transparency and establishing guidelines for data center construction and operation across the nation. The legislation comes amid a significant boom in data center facilities, particularly in Virginia, which is often referred to as the 'Data Center Capital of the World,' with a high concentration in Loudoun County and Northern Virginia. Senator Warner expressed concerns that many of these facilities operate with little public disclosure and stated his bill would create a national baseline for transparency.

The proposed bill would require data centers to disclose water and energy usage, ensure appropriate uses of water, establish setbacks from neighborhoods, and guarantee backup power is clean and reliable. Data centers would need to meet these standards to receive certain federal tax benefits, with any non-disclosure agreements also required to be revealed to the community.

Concurrently, the Chesapeake City Council in Virginia recently approved an eight-month pause on applications for new data center facilities in their city. Mike Trout of the Chesapeake Bay Foundation supported the proposed federal legislation, noting that increased transparency would empower communities to make informed decisions about data center development and its impact on their lives and the environment.