Sen. Warner targets data centers’ energy usage, economic impacts of AI in new bills
Senator Mark Warner has introduced new federal bills aimed at regulating data centers, particularly those supporting AI, by requiring public disclosure of energy and water consumption, emissions, and tying federal tax benefits to high efficiency standards. The legislation, part of a broader AI framework, seeks to address concerns from local residents and environmental groups regarding data centers' environmental and economic impacts, alongside a new data center electricity consumption tax enacted in Virginia.
Senator Mark Warner (D-Va.) has introduced a new package of artificial intelligence bills in Congress, titled “A Framework for America’s AI Future,” which includes provisions to increase regulations on data centers. The legislation aims to promote responsible AI development while addressing the environmental and economic impacts of the rapidly expanding data center industry, particularly in states like Virginia.
A key component of Warner's agenda is the Data Center Tax Accountability and Disclosure Act. This bill proposes requiring large AI data centers to publicly report their energy and water consumption, emissions, backup generation, and other operational data. It also seeks to link federal tax benefits, such as bonus depreciation, to data centers achieving high efficiency and sustainability standards, specifically platinum or gold Leadership in Energy and Environmental Design (LEED) certification. The Chesapeake Bay Foundation, Sierra Club, and Virginia League of Conservation Voters have endorsed this legislation.
Another proposed bill would allocate revenue from these bonus depreciation limits to a National Workforce Transition Fund, aimed at supporting worker retraining and other programs to help the workforce adapt to technological disruptions. Warner noted that the growth of AI has led to a significant expansion of data centers, sparking concerns among residents and environmental groups regarding noise, energy usage, and environmental impacts, particularly in Loudoun County, Virginia. Michael Town, executive director of the Virginia League of Conservation Voters, emphasized that the legislation responds to public frustration over data centers driving up energy costs and polluting resources.
While the Data Center Coalition, represented by President and CEO Josh Levi, is reviewing the legislation, the industry has expressed commitment to engaging with policymakers on responsible development. In related state-level action, Virginia's recent budget added a new data center electricity consumption tax, effective July 1, charging $0.011 per kilowatt hour, and a new rate class for large energy users on Dominion Energy bills will begin in 2027. Warner's broader AI framework also addresses trusted AI agents, combating AI-generated child exploitation material, and promoting high-skilled doctoral talent in AI fields.