Roy files legislation to track data center water, power use
U.S. Rep. Chip Roy filed federal legislation, the POWER Act, requiring the Department of Energy to track water and energy consumption of large data centers that receive expedited federal permitting. This initiative addresses growing concerns over resource usage by data centers, particularly in states like Texas experiencing drought and increased development. The bill comes as communities in Texas, such as Red Oak and Hill County, are actively engaged in decisions regarding data center projects.
U.S. Representative Chip Roy (R-Texas) has introduced federal legislation, the Public Oversight of Water and Energy Reporting (POWER) Act, aimed at increasing transparency regarding the resource consumption of large data centers. The bill would mandate the Department of Energy (DOE) and the Environmental Protection Agency (EPA) to track and report the water and energy usage of data centers qualifying for expedited federal permitting under Executive Order 14318, which applies to AI data centers requiring over 100 megawatts of electricity.
Roy emphasized the need for clear data on water and energy usage as data centers proliferate nationwide, especially in states like Texas that face extreme drought conditions. The legislation specifically calls for reports on water consumption from public sources or closed-loop systems, as well as tracking data centers' power sources and connection costs to the public electric grid.
The POWER Act's introduction comes amid growing concerns and opposition to data center development in Texas. A University of Texas at Austin study projects that data centers could account for up to 9% of the state's water demand by 2040. Recent local actions include the City of Red Oak approving the rezoning of agricultural land for a data center despite community protests, and Hill County enacting a moratorium on new data center projects. These developments underscore the increasing political and environmental scrutiny facing the industry in the state.