119th Congress (2025-2026)

HR 7858

Data Center Community Impact Act

Introduced

Jurisdiction

US Congress

Session

119th Congress (2025-2026)

Official source

Chamber

House

Session

119th Congress (2025-2026)

Jurisdiction

US Congress

Bill overview

This bill, the Data Center Community Impact Act, directs the Department of Energy to study the effects of data centers on communities of color and low-income communities. The study will examine water and energy consumption, air quality, land use, grid impacts, job creation, tax revenue, and property values, among other factors. The goal is to identify potential harms and recommend strategies for mitigation and best practices for state and local governments.

Key provisions

Requires a study by the Department of Energy on the impact of data centers on communities of color and low-income communities.
The study will cover water consumption, energy usage, air quality, land use, grid impacts, and job creation.
The study must consult with local governments and Indian Tribes.
The Department of Energy will provide a report to Congress within 18 months, including a map of data center locations and mitigation recommendations.
Defines ‘community of color,’ ‘data center,’ ‘Indian Tribe,’ ‘local governmental entity,’ and ‘low-income community’ for the purposes of the bill.
The study will assess the effects of data centers on State and local tax revenue.
The study will examine the effects of data centers on property values.
The study will evaluate the impacts of data centers on public health risks.

Who is affected

Communities of color
Low-income communities
Indian Tribes
Local government entities
Electric grid users

Positions across the country

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Legislative history

2026-03-05House

Referred to the House Committee on Energy and Commerce.

2026-03-05

Introduced in House

2026-03-05

Introduced in House

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Mar 5, 2026XMLView source

119th CONGRESS — 2d Session

H. R. 7858

IN THE HOUSE OF REPRESENTATIVES

A BILL

To require the Secretary of Energy to conduct a study on the effect of data centers on communities of color and low-income communities, and for other purposes.

1.Short title

This Act may be cited as the

Data Center Community Impact Act

2.Findings

Congress finds the following:

(1)Data centers are a significant and growing source of energy consumption in the United States, accounting for approximately 4.4 percent of total United States electricity use in 2023, with projections estimating growth to between 6.7 percent and 12 percent as demand for computing power and artificial intelligence increases.

(2)The energy usage of data centers has tripled over the last decade and is projected to double or triple again by 2028. Water-cooling infrastructure for data centers consumed approximately 17 billion gallons of water in 2023, a figure projected to increase substantially by 2028, while an estimated 211 billion additional gallons of water were used to generate the electricity consumed by data centers.

(3)Communities of color, low-income communities, Indian Tribes, and other vulnerable populations, such as persons with disabilities, children, and the elderly, are disproportionately burdened by environmental hazards that include exposure to polluted air, waterways, and landscapes.

(4)Communities subject to environmental injustice have been subjected to systemic racial, social, and economic injustices and face a disproportionate burden of adverse human health impacts, a higher risk of intentional, unconscious, and structural discrimination, and disproportionate energy burdens.

(5)The siting and operation of data centers have raised environmental and public health concerns for nearby communities, including in Memphis, Tennessee, where a large-scale facility was built near a predominantly Black neighborhood already burdened by existing pollution issues.

(6)The Federal Government has a responsibility to protect public health and community safety pursuant to the Clean Air Act and the Federal Water Pollution Control Act (commonly referred to as the Clean Water Act), including through the evaluation of emerging sources of environmental and energy-related impacts.

3.Study and report on the effect of data centers on communities of color and low-income communities

(a)In general

The Secretary of Energy, in coordination with the Administrator of the Environmental Protection Agency, the Secretary of Commerce, the Chair of the Federal Energy Regulatory Commission, and the Council on Environmental Quality, shall conduct a study on the effect of data centers on communities of color and low-income communities.

(b)Included information

The study required by subsection (a) shall include the following information:

(1)

The amount of water consumed by data centers, including how such consumption affects local water supplies and drought-prone regions.

(2)

The amount of energy consumed by data centers, including the amount of such energy generated from fossil fuels and the effect of such consumption on peak load on the electric grid.

(3)

How such data centers affect air quality, including the amount of emissions from backup diesel generators and associated infrastructure operated by data centers.

(4)

The effect of data centers on soil and land-use practices, including land-use practices relating to agriculture and local food sources.

(5)

The effect of data centers on the electric grid, including with respect to any increase in rates for electricity.

(6)

How the cooling processes used by data centers affect wastewater systems.

(7)

The effects of constructing and operating data centers on the creation and displacement of jobs.

(8)

The effects of data centers on State and local tax revenue, including with respect to tax incentives and whether benefits flow to the community in which the data center is located.

(9)

The effects of data centers on the value of property located in nearby residential areas.

(10)How data centers affect public health risks related to pollution, stress on natural resources, summer heat, and heat island effects.

(c)ConsultationIn conducting the study required by subsection (a), the Secretary of Energy shall consult with relevant local government entities and Indian Tribes.

(d)Report

Not later than the date that is 18 months after the date of enactment of this section, the Secretary of Energy shall provide to Congress a report that includes—

(1)

an assessment of the information included in the study required by subsection (a);

(2)a map that identifies where data centers are located relative to communities of color and low-income communities;

(3)recommendations for Federal coordination on how to mitigate potential harms of data centers; and

(4)proposed guidelines or recommendations for best practices that States and local government entities may adopt to mitigate potential harms of data centers.

4.Definitions

In this Act:

(1)Community of color

The term community of color means a geographically distinct area in which the population of any of the following categories of individuals is higher than the average population of that category for the State in which the community is located:

(A)

Black.

(B)

African American.

(C)

Asian.

(D)

Pacific Islander.

(E)

Hispanic.

(F)

Latino.

(G)Middle Eastern or North African.

(2)Data centerThe term data center has the meaning given such term in section 453(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17112(a)).

(3)Indian tribe

The term Indian Tribe has the meaning given the term Indian tribe in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304).

(4)Local governmental entity

The term local governmental entity means any municipal government or county government with jurisdiction over local land use decisions.

(5)Low-income community

The term low-income community means any census block group in which 30 percent or more of the population are individuals with an annual household income equal to, or less than, the greater of—

(A)

an amount equal to 80 percent of the median income of the area in which the household is located, as reported by the Department of Housing and Urban Development; and

(B)

200 percent of the Federal poverty line.

(6)StateThe term State includes the District of Columbia and any territory of the United States.

HR 7858

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