Rep. Chip Roy introduces bill to monitor data center resource usage
Texas Congressman Chip Roy has introduced federal legislation aimed at monitoring the significant water and energy consumption of large-scale data centers, particularly those receiving federal support or expedited permitting. The bill mandates the U.S. Department of Energy to collect and publicly report resource usage data, distinguishing between different cooling systems. This initiative addresses growing concerns in Texas regarding the strain on local water supplies and power grids due to rapid data center development.
WASHINGTON, D.C. — Representative Chip Roy, a Republican from Central Texas, has introduced federal legislation designed to enhance oversight of the burgeoning data center industry's resource consumption. The bill, filed last Friday, mandates that the U.S. Department of Energy (DOE) monitor and publicly disclose the water and energy demands of data centers that either receive federal assistance or benefit from expedited permitting under a recent executive order.
The proposal emerges as Texas experiences a rapid expansion in data center development, fueled by the rising need for cloud computing, artificial intelligence infrastructure, and digital storage. While these projects are expected to generate economic growth and employment, they have also ignited concerns among lawmakers, utility providers, and residents about potential stress on local water resources and electricity grids.
The legislation specifically requires the DOE to gather detailed data on water and electricity usage, differentiating between facilities employing closed-loop water recycling systems and those utilizing open-loop systems that draw continuously from municipal sources. Critics argue that open-loop systems can severely impact local water infrastructure, especially in drought-prone areas like parts of Texas. Additionally, the bill mandates the disclosure of costs associated with connecting data centers to the power grid, specifying whether these expenses are covered by companies, ratepayers, or federal subsidies. The reporting requirements, however, will not extend to data centers owned or operated by federal agencies.
Roy's initiative underscores a broader political effort to balance economic development with infrastructure sustainability amidst the rapid growth of the digital economy. It seeks to provide essential data for long-term planning and responsible growth in a state that has become a national hub for data center construction.